US Tax Reforms Could Attract Top Canadian Talent

In its first major tax reform in over 30 years, the United States is considering a package of tax changes that if passed into law, could significantly impact Canada’s ability to keep top talent and business ventures from moving across the border. While Canadian high-income earners have faced various federal and provincial tax hikes since 2016, and private businesses are fighting this summer’s controversial high-tax  reforms, the federal tax proposals in the U.S. are much friendlier to several taxpayer profiles: […]

The Paradise Papers, Pre-Budget Consultations and The Real Tax Gap

This week brought more controversial tax news to Canadians: the Paradise Papers and a new tax “consultation”; this time in advance of the 2018 Federal budget. The elephant in the room in both these stories is the unfinished “consultation” on the massive tax changes proposed for private businesses. Small business owners are still reeling from the potentially exorbitant tax hikes on the incomes from their invested capital in private corporations within Canada, even as they hear about potential tax erosion […]

Which Employee Benefits Are Taxable?

A couple of weeks ago, the financial news of the day involved a controversy about the taxation of employee benefits. CRA was enforcing its interpretation of the law in relation to the taxation of the benefit of receiving employee discounts at work. After a political outcry, CRA backed down, leaving several question marks. That’s regrettable because tax law must be certain – up front – in order for employers to properly fill out T4 slips and communicate the net after-tax […]

Disability Tax Credits Change Highlights Audit-Proofing

Audit-proofing strategies must be implemented by tax professionals and their diabetic clients receiving disability tax credits in light of the CRA’s new interpretation of the rules. CRA has changed their position on allowing diabetics to claim disability tax credits in certain cases; a national news controversy that is leaving taxpayers uncertain about claims specific to important life sustaining therapies for their loved ones.  So exactly what are the rules and why is CRA changing their interpretation in retrospect? Criteria for […]

How To Grow Your Business Through Influential Leadership

No doubt about it: leadership is challenging these days. Whether you are raising a child, coaching someone else’s child, directing a team to reach a common goal, or leading your clients towards their financial goals and objectives, the skills you need to navigate change – a leader’s, primary role – are themselves changing. Your business and career growth, in fact, may depend on your ability to embrace new leadership requirements. Although often rewarding and challenging, leadership is rarely easy. It […]

Changes to Corporate Income-Splitting Rules Could Hurt Women and Families

Finance Canada’s controversial proposals on the taxation of private corporations, which require comments on the changes by October 2, will potentially affect business people of all income levels, from all walks of life, who serve and employ Canadians in their hometowns across Canada. However, they will also affect families and, in particular, women. According to the background information accompanying the proposals, entrepreneurship is alive and well in Canada. The number of incorporated self-employed individuals almost doubled between 2000 and 2016. […]

7 Factors for Classifying Your Side-Gig Income with the CRA

About 32 per cent of workers are starting their own businesses on the side for a variety of reasons — including 25 per cent of those who earn more than $75,000 and 19 per cent of those with income over $100,000. For tax purposes, it’s critical to know the difference between someone who is employed and someone who is considered self-employed. The research conducted in the U.S. by CareerBuilder.com also confirms that self-employment is embraced more frequently by women and […]

New Canadian Tax Reforms Fail to Address Modern Challenges

Just how much is too much tax? For whom? In case you missed it, Canada is in the midst of a contentious tax reform that increasingly advocates the defeated reforms of yester-year. It seems governments think a “buck is a buck” for tax purposes again. But taxpayers who find themselves under siege — investors in small business in particular — say, it just isn’t so. Here’s why. Back in 1962, Prime Minister John Diefenbaker initiated the Royal Commission on Taxation, […]

Do Passive Investments in a CCPC Still Make Sense?

The federal government is on the hunt for new tax revenue from Canada’s small businesses, mainly because of an erosion of the personal tax base and a significant shift of taxable income to the corporate tax base instead. Specifically, the amount of taxable passive investment income earned by private corporations has increased from $8.6 Billion in 2002 to $26.8 Billion in 2015. And the government wants a bigger piece of that pie. The view is that because small business tax […]

Should You Take Your CPP Early or Late?

Are you thinking about retiring soon? One important consideration in this process is whether you should start your Canada Pension Plan benefits early or late. Now that tax season is over for most people (proprietors have until June 15 to file their returns), this is a question tax specialists and their pre-retiring clients should be discussing sooner rather than later. In fact, anticipating the after-tax consequences of this decision can help spur on broader retirement planning activities. Planning tips to […]