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Bookkeeping is essential for any successful business, but even small mistakes can lead to costly penalties from the CRA and stress. While managing your own bookkeeping can be beneficial, it requires time, basic accounting knowledge, and awareness of common pitfalls to avoid errors.
Business expenses are vital for the successful operation of any business. In Canada, specific rules govern what qualifies as tax-deductible expenses, and the CRA carefully reviews travel-related expenses to ensure compliance.
A corporation is required to file its corporate tax return (T2 return) with the CRA within six months of its fiscal year-end. However, corporate returns include many additional forms and schedules prescribed by the CRA besides the T2. In this article, we highlight some important schedules.
As you generate investment income through a Canadian corporation, it is imperative to understand how to manage it tax-efficiently to avoid overpaying on investment income and to ensure it does not affect your business income tax rate!
Section 87 allows Canadian corporations to merge on a tax-deferred basis, reducing costs, simplifying administration, and achieving tax planning goals. However, it’s a complex process, and non-compliance can be costly and lead to undesired outcomes.
Whether to buy or lease a car for your Canadian corporation depends on various factors and personal preferences, such as your lifestyle, cash flows, and tax considerations. There is no one-size-fits-all answer. It’s important to consider all specific aspects before making a decision.
Effective June 20, 2024, the Government of Canada has designated Psychotherapy and Counseling Therapy Services HST/GST exempt. While this makes the service less expensive for users, it has various implications for psychotherapy professionals.
One of the most common questions among corporation owners is whether to purchase vehicles under the company’s name or personally. Many assume that simply owning the car in the corporation’s name allows for deducting all expenses; beware of the stringent rules governing vehicle expense deduction and their implications on personal tax returns.
A family trust is a powerful tool for tax and estate planning. By setting up a trust, you can reduce taxes, protect your assets, and
As a purchaser of new residential rental property in Ontario, you may be eligible to claim a rebate on a portion of the HST paid, up to a maximum of $24,000. This rebate applies if the property’s first occupant is a tenant who uses it for residential purposes. Certain properties may qualify for rebates on both the Federal and Ontario portions of the HST.
