Ledgers Canada - Brampton East

Do you have a Personal Services Corporation? The CRA is coming for you!

Are you a Personal Services Corporation? We see and hear it all the time. An individual is laid off or terminated by their employer, only to return to the same position as a ‘contractor’.

Do you have employees, or do you have ‘sub-contractors’? At face value it may not appear to matter much, but the consequences of a run-in with CRA over the application of the employee vs. self-employed rules can be quite significant.

Employee or Self-Employed:

Employee or Self-Employed Do you have employees, or do you have ‘sub-contractors’? At face value it may not appear to matter much, but the consequences of a run-in with CRA over the application of the employee vs. self-employed rules can be quite...

This Month's Newsletter: Don't get Caught by a CRA Scam!

Don't get Caught by a CRA Scam! As tax time has now mostly ended, the scammers are hard at work trying to fool you into giving up personal information. Since you are looking for your refund or notice of assessment, the scammers are ready for you!

This Month's Newsletter: It's Time to Take Your Bookkeeping Seriously

It's Time to Take Your Bookkeeping Seriously Do You Care About Your Bookkeeping?

'If your business is ever subject to a payroll audit, one of the first things the CRA auditor will look at is Taxable Benefits. Unfortunately, due to the complexity of these types of earnings, most small business owners either neglect to report them or they simply report them incorrectly.'

Taxable vs. Non-Taxable Benefits:

Taxable vs. Non-Taxable Benefits If your business is ever subject to a payroll audit, one of the first things the CRA auditor will look at is Taxable Benefits. Unfortunately, due to the complexity of these types of earnings, most small business owners e...

This Month's Newsletter: The Underused Housing Tax (UHT)

The Underused Housing Tax (UHT) In January 2022, the government introduced a tax on underused housing to try and reduce the level of real estate speculation and clamp down on foreign investment in housing.

"Great! You’ve decided to start a business. One of the most critical decisions to make however, is not location, staffing, advertising or financing, it is: What legal structure should your business take?"

Choosing a Business Structure:

Choosing a Business Structure Great! You’ve decided to start a business. One of the most critical decisions to make however, is not location, staffing, advertising or financing, it is: What legal structure should your business take?

"Others issued shares to their spouses and children solely for the purpose of splitting income. CRA of course, got wise to this and came up with the Tax on Split Income rules (TOSI), in 2018.

So, how does it work? Here’s a brief overview:"

Tax on Split Income (TOSI) Rules:

Tax on Split Income (TOSI) Rules Many small business owners incorporate their businesses and neglect to make their spouses and children shareholders, even though they may be working in the business.

"That time of year is approaching, yes, tax time is almost upon us.

We hear the same things every year. This or that entitles me to a tax deduction. Unfortunately, such is not the case. It most instances, what you may believe entitles you to a tax deduction only entitles you to a tax credit.

Same thing right? Wrong!

Let’s look at the primary differences..."

Tax Deduction vs. Tax Credit:

Tax Deduction vs. Tax Credit That time of year is approaching, yes, tax time is almost upon us.

"Did you know that as a Registered Charity, you likely qualify for a GST / HST rebate even if you are not registered for it?... And although the refund is not be the full amount of GST you have paid, it can add up to several thousand dollars each year."

Is Your Charity Getting the GST/HST Rebate?

Is Your Charity Getting the GST/HST Rebate? Did you know that as a Registered Charity, you likely qualify for a GST / HST rebate even if you are not registered for it?

"But one of their most powerful tools is the Lifestyle Audit; in basic terms, they look at they way you live vs. the income you reported on your tax returns. How does this work?"

Lifestyle (Net Worth) Audits:

Lifestyle (Net Worth) Audits With the high rate of taxation in Canada, some individuals do what they can to avoid or even evade paying taxes. CRA of course, is aware of this practice and has tools to identify these individuals.

"If you have been considering starting a business for a while, you have likely seen or heard ads for bookkeeping software. There are many programs out there designed for small businesses, all of them announcing that you can do the books, payroll, and financial reporting yourself. Is this true though?"

It's ok, (really!) to pay a Professional Bookkeeper:

It's ok, (really!) to pay a Professional Bookkeeper Congratulations! You have taken the leap of faith and decided to start your own business. The future looks bright and promising.

"There are significant differences, but everyone should really have both types of investments in their financial plans. How much and when you contribute to each will vary based upon your personal situation each year."

RRSP or TFSA, What's the Difference?:

RRSP or TFSA, What's the Difference? We are often asked by clients if they should invest in RRSP’s or a TFSA. There is no easy answer as every situation is different, however, we’ll try to give you some guidance here.

This Month's Newsletter: Is Your Business Ready for Year-End?

Is Your Business Ready for Year-End? The end of the year does not have to bring woes to your business, in fact, it should represent a time to reflect on the successes (and failures) of the previous year and a time to look forward to the upcoming year, your ...

'Your credit score tells a potential lender the probability that you will repay your debt to them as promised; several factors go into the score, here are the primary ones...'

Understanding Your Credit Score:

Understanding Your Credit Score In today’s world, so much of your personal and business needs are based upon your credit score, yet countless Canadians understand their score and even more never bother to check their reports for errors.

'...depending on your personal tax situation, tax bracket and other factors, a significant amount of dividends could be received before you notice an increase in your personal tax burden, making them seem to be ‘tax-free.’'

Salary vs. Dividends, What's Best for you?

Salary vs. Dividends, What's Best for you? Before we can explore the benefits of receiving Salary or Dividends, it is important to first understand what exactly dividends are;

'With the aging population comes the transfer of assets and personal wealth from parents to children and other family members. Of course, with all the transfers and sales of assets, comes the potential for Capital Gains Tax.'

Understanding Capital Gains Tax:

Understanding Capital Gains Tax on Real Estate With the aging population comes the transfer of assets and personal wealth from parents to children and other family members. Of course, with all the transfers and sales of assets, comes the potential for Capital Gains T...

Here Are Some Simple Ways You Can Save On Or Defer Corporate Income Tax This Year:

Simple Tax Planning Tips It is hard to believe, but year-end is not very far away. With some basic planning, you can save Corporate Income Tax this year, or defer it until next year. Following are some ideas to help you.