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2018 Tax Credit

2018 Tax Credit - Changes for Personal Income Tax

2018 Tax Credit - Children’s Fitness and Arts Amounts

For the 2018 tax season the Children’s Fitness and Arts Tax Credits can no longer be claimed.

2018 Tax Credit - Public Transit

Amounts spent for public transportation will only be deductible up to June 2017. The tax credit will no longer be eligible past July 1, 2017.

Seniors may still claim their public transportation costs in Ontario.

2018 Tax Credit - Education and Textbook Amounts

As of Jan. 1, 2017, you may no longer claim the education or textbook tax credits.

However, if you carried forward credits from a previous tax year, you may claim those credits on your tax return for 2017 or later years.

2018 Tax Credit - Tuition Tax Amounts

The tuition tax credit are now … [Read more...]

Tax deadline

Tax deadline for individual

tax deadline

March 1 - RRSP Deadline

March 1 is RRSP deadline for contributing to your Registered Retirement Savings Plan (RRSP) for the past tax filing year.

April 30 - Tax Filing and tax owing Payment deadline

April 30 - Tax filing deadline for most individuals for personal income tax filing for the past tax year.

Tax deadline for business

February 28 – T4, T5 and T4A filing deadline

If you have employees, you have to file a T4 and T4 summary by the last day of February.

If you pay commissions or service fees to subcontractors of your business, you have to file T5 and T5 summary by the end of February.

If your company pay dividends to shareholders, you have to file T5 and T5 summary by the end of February.

GST/HST filing and payment deadline

If your GST/HST … [Read more...]

Authorize or cancel your tax representative

Your tax account information is confidential. The Canada Revenue Agency (CRA) need your authorization if you want the CRA to deal with your tax preparer or accountant who would act as your representative for income tax matters.

How your tax representative can help you.

The CRA's secure online services make it easier for your tax representative to access your tax information online.

Services that your tax representative can do on behalf of you

  • Use the Auto-fill tax return program launched by the CRA in 2016 to automatically fill in portions of your tax return
  • Access your tax information slip – T4, T4A, T4A(P), T4A(OAS), T4E, T4RSP, T4RIF, T5007, T3, T5, T5008 and RRSP Contribution Receipt
  • View Home Buyers’ Plan and Lifelong Learning … [Read more...]

Corporation Tax Preparation Checklist- Income Statement

An income statement is a summary of your company's income and expenses over a specific accounting period. Most common items in an income statement are listed below.

Revenue

  • Sales of goods and services
  • Investment revenue
  • Commission revenue
  • Rental revenue
  • Other revenue

Cost of sales

  • Opening inventory
  • Purchases/cost of materials
  • Closing inventory

Operating Expenses

  • Advertising and promotion
  • Donations
  • Amortization of intangible assets
  • Goodwill impairment loss
  • Bad debt expense
  • Employee benefits
  • Amortization of tangible assets
  • Insurance
  • Interest and bank charges
  • Credit card … [Read more...]

GST/HST account for business

Depending on your business you may have to register GST/HST account.

Mandatory GST/HST account registration

You have to register for a GST/HST account if:

  • you provide taxable supplies in Canada; and
  • your business total amount of all revenues (before expenses) is more than $30,000 in four consecutive calendar quarters.

Voluntary GST/HST account registration

If you are a small supplier, which means your business gross annual revenue is less than $30,000, and you are making taxable supplies of goods and services in Canada, you can register voluntarily.

If you decide not to register for the GST/HST,

  • You do not charge the GST/HST to your customers
  • You cannot claim an input tax credit (ITC) to recover the GST/HST paid or payable on your purchases and operating expenses

If you decide to … [Read more...]

HST basic concepts for business

What is the HST?

The HST is a sales tax that applies to most goods and services in Canada. Generally, if you are a GST/HST registrant, you have to charge and collect the sales tax for the government on all taxable supplies (other than zero-rated supplies) you provide to your customers.

Taxable supplies of goods and services

Most property and services supplies in or imported into Canada are subject to GST/HST. Examples of taxable supplies

  • sales of new housing
  • sales and rentals of commercial real property
  • sales and leases of automobiles
  • advertising
  • taxi and limousine transportation
  • legal and accounting services
  • hotel accommodation
  • barber and hairstylist services

Zero-rated supplies of goods and services

You do not collect the GST/HST on these supplies. Examples of … [Read more...]

How to deduct Canada Pension Plan (CPP) contributions

As an employer, you have to deduct Canada Pension Plan contributions from an employee's pensionable earnings if that employee:

  • is in pensionable employment during the year; and
  • is not considered to be disabled under the CPP or the Quebec Pension Plan (QPP); and
  • is 18 to 70 years old even if the employee is receiving a CPP or QPP retirement pension. Exception: do not deduct Canada Pension Plan (CPP) if the employee is 65 to 70 years old, and gives you Form CPT30, Election to Stop Contributing to the Canada Pension Plan, or Revocation of a Prior Election with parts A, B and C completed.

You have to deduct CPP contributions from your employee's pensionable earnings. As an employer, you must contribute an amount equal to the CPP contributions that you deduct from your employees' remuneration.

Each year, the CRA provide the maximum pensionable … [Read more...]

How much you get from the new Canada Child Benefit (CCB)

Starting from July 2016, the old Canada tax benefit – including the Universal Child Care Benefit – will be cancelled, and the new Canada Child Benefit will start.

You don’t need to apply if you already get child benefits, but you and your spouse or common law partner have to file a 2015 tax return. If you are eligible, you will automatically start receiving the new Canada Child Benefit as of July 2016.

How much you get from this new Canada Child Benefit

The maximum payment for families with children under age six will be $6,400 per child. And the maximum payment for families with children between the ages of six and 17 will receive up to $5,400 annually. Families with annual income below $30,000 will receive the maximum payment.

Family with 1 child Household Income New Child BenefitOld Child Benefit $15,000 … [Read more...]

How to deduct employment insurance (EI) premium

As an employer, you have to deduct employment insurance (EI) premiums from your employee's insurable earnings up to the yearly maximum. And you must contribute 1.4 times the amount of EI premiums that you deduct from your employee's remuneration.

Insurable employment includes most employment in Canada under a contract of service (employer-employee relationship).

There is no age limit for deducting EI premiums.

EI premium rate and maximum

Each year, the CRA give the maximum insurable earnings and rate for you to calculate the amount of EI to deduct from your employees.

In 2016, the maximum annual insurable earning is $50,800; the EI premium rate is 1.88%; the maximum annual employee premium is $955.04 and the maximum annual employer premium is $1,337.06.

You have to deduct EI premiums from insurable earnings you pay to your employees. In addition, you … [Read more...]

What is new for payroll deductions and remittances

As an employer, you have to make payroll deductions and remittances to pay yourself and/or your employees. Below is the latest update you should know to make your payroll deduction and remittances easier and painless.

Remit your payroll deductions quarterly instead of monthly.

Starting in 2016, if you are an new small employers, you can choose to remit your payroll deductions quarterly instead of monthly.

If your monthly withholding amount is less than $1,000 and you have a perfect compliance history, you will be eligible for quarterly payroll deductions and remitting.

You have to send your deduction before the 15th of the month immediately following the end of each quarter. The due dates for quarterly deductions are April 15, July 15, October 15 and January 15.

Online services for payroll deductions and remittances

You can … [Read more...]