ZERO RATED AND EXEMPT SUPPLIES FOR GST/HST

Current GST/HST procedures are difficult to understand and impose significant reporting and remittance obligations on sole proprietors, small and medium-sized businesses, and large corporations alike. In order to thrive under the GST/HST system, companies must understand their tax classification under the Excise Tax Act. There are three main classifications of supplies in the Excise Tax […]

TAXPAYERS’ OMBUDSMAN AND THE TAXPAYER BILL OF RIGHTS

In Canada, taxpayers have legal rights listed in the Canadian Revenue Agency Taxpayer Bill of Rights. The Ombudsman was established to help enforce the Taxpayer Bill of Rights and is independent of the CRA. So, what exactly does the Canadian Tax Ombudsman do? Well, they don’t deal with tax policy or program legislation complaints and […]

TAXATION AND BUSINESS START-UP IN CANADA

Most entrepreneurs don’t have an in-depth understanding of tax laws when setting up a business. So, they will likely hire an accountant to ensure everything is set up correctly from the beginning. 82.75% of our clients are small business corporations and we have the tools to help you! Taxation of Various Business Structures It’s good […]

TAX IMPLICATIONS OF FLIPPING A HOUSE OR CONDO

The Canada Revenue Agency, or CRA, is clamping down on real estate transactions more than it used to. They claim that tax non-compliance is one reason behind ever-increasing housing prices. In particular, the CRA is interesting in taking a closer look at home and condo flipping, and they have been running an audit on home […]

SHOULD CANADIAN CRYPTO AND NFTS TRADERS FILE A T1135 FORM?

There are 5 basic foreign-reporting rules in Canada’s Income Tax Act, to report specific transactions involving foreign interest. These are the relevant rules: A Canadian resident must file a T106 form if he is doing business with a non-resident. A Canadian resident must file a T1141 form if transferring or loaning property to a non-resident […]

IS YOUR CRYPTO CANADIAN OR FOREIGN? AND WHY IT MATTERS?

A cryptocurrency asset is intangible and digital and exists through a blockchain or other decentralized network via distributed ledger technology or DLT. A distributed ledger is like a database where electronic records are stored and shared and then replicated across various locations around the globe. They are maintained by a decentralized peer-to-peer network, which means […]

HOW CRYPTOCURRENCY IS TAXED UPON DEATH IN CANADA

Bitcoin, Ethereum, Polygon, Avalanche, and Fantom are just some of the cryptocurrencies used for investment by many Canadians. There are also non-fungible tokens, or NFTs, which are becoming ever more mainstream in the world of collectibles and art. Considering the growing popularity of both, it’s fair to say a lot of investors need to know […]

HOW ARE GIFTS TAXED IN CANADA?

If a receipt constitutes income, it’s taxable. However, according to Canadian law, there isn’t an unambiguous definition of ‘income.’ Tax must be paid on taxable income (the taxpayer’s yearly income). Yet, this isn’t clear because the Income Tax Act has income defined as taxable income instead of offering an exact definition. The courts have determined […]

HOME BUYERS PLAN

Saving up for a down payment can seem like an impossible task. The good news is that first-time homebuyers in Canada can withdraw funds tax-free from their registered retirement savings plan (RRSP) to contribute to a down payment. The program is called the RRSP Home Buyers’ Plan, and in order to be eligible, there are […]

ESTATE ADMINISTRATION BASICS

FIRST THINGS FIRST When a loved one dies, and you are responsible for dealing with their affairs after death, including for administering their estate, you may be experiencing uncertainty about your role, on top of all the emotions that come when grieving a loved one. One of the first duties of the estate trustee, usually […]