Author Archives: Tax Partners

New rules aimed at providing more transparency on beneficial ownership of assets now require that more trusts (and estates) file tax returns. These changes will catch many individuals and businesses that may not be aware of their trust-like relationships, exposing them to potential penalties and other consequences for non-compliance. The rules become effective in 2023, […]

During the pandemic, many employers offered their employees the option of working from home. Some employees have always worked from home. Whichever situation fits you, there are some things that you need to know. In order to claim any work from home expenses, the employer needs to provide the employee with a T2200, Declaration of […]

Toronto residential property owners, including corporations, partnerships and trusts, must submit a declaration of their property’s occupancy status for 2022 and pay any tax assessed on the property in 2023. What is it? The City of Toronto has implemented a Vacant Home Tax on all vacant residential properties for the 2022 taxation year.  The goal […]

Many taxpayers prefer the ease of investing in a Tax-Free Savings Account (TFSA) rather than a Registered Retirement Savings Plan (RRSP) based solely on the fact that the TFSA is tax free. Adults 18 years and older can contribute up to $10,000 to their TFSA annually. While the RRSP contribution room will generally be much […]

Tax installments are issued when a taxpayer owes $3,000 or more and the taxpayer’s net tax owing is $3,000 or more in any of the previous tax years. Installments are required to be paid in quarterly installments and general occur on or before March 15, June 15, September 15 and December 15. While this is […]

You’ve completed your tax return and you received your Notice of Assessment, and you owe money to the CRA. There have been some common questions and misconceptions when it comes to owing money to the government.  Here are few: Ignoring it will NOT make it go away. CRA debt is due immediately. Just like anything […]

Form 1135 is where Canadians report foreign property that exceeds $100,000 CAD. There is no obligation to pay tax but failing to file the T1135 can result in penalties of up to $2,500 per tax year. There is still some grey area when it comes to the T1135 and cryptocurrency. There are two factors in […]

There are two ways that a Canadian Citizen can be deemed a U.S Resident for Tax Purposes: Green Card Test: If you are lawfully a permanent resident than you are deemed a resident Substantial Presence Test: If you are present in the U.S at least 31 days in the current year, and At least 183 […]

HST is the combination of the Provincial Sales Tax (P.S.T) and Government Sales Tax (GST). For Ontario, it is the combination of 7% and 6% to make the HST rate for Ontario 13%. Depending on which province you live in, the sales tax rate may vary. Some provinces only charge GST and some have a […]

Shareholders can withdraw funds from their corporations by way of salary, dividends, returns of capital and management fees. They may also do so as an independent contractor should they qualify. This is called a Shareholder Loan. There are many provisions in the Income Tax Act to prevent shareholders abusing this. If a withdraw is made […]