Sandra DaCosta

The June 15th self employed tax deadline in Canada is coming up and this can be a challenge for small businesses, especially those that are newly operational or whose books are not in order.

There is always misunderstanding around the June 15th filing deadline for self-employed businesses. A few of us CPAs including myself recently had the opportunity to discuss the challenges with the Globe & Mail. See today’s article in the Globe & Mail “How the self-employed can stay on track for June 15 tax-filing”.

The June 15th self employed tax deadline in Canada is coming up and this can be a challenge for small businesses, especially those that are newly operational or whose books are not in order.

There is always misunderstanding around the June 15th filing deadline for self-employed businesses. A few of us CPAs including myself recently had the opportunity to discuss the challenges with the June 15 filing deadline with the Globe & Mail. Below is a link to the news article:

https://www.theglobeandmail.com/investing/globe-advisor/advisor-news/article-how-the-self-employed-can-stay-on-track-for-june-15-tax-filing/

Canadian tax residency is a complex topic. One of the biggest mistakes I see is assuming that a persons legal immigration status determines their tax residency in Canada. Immigration status in Canada does not determine tax residency status. For example, one can be a citizen of Canada but be a non-resident of Canada for tax purposes.

Canada imposes tax on individuals based on their status as either a resident or non-resident. Individuals resident in Canada are subject to Canadian tax on their worldwide income from all sources. Non-residents, on the other hand, are subject to Canadian tax only on Canadian-source income. Therefore, determination of residency is crucial for Canadian tax purposes.

Unfortunately there is no simple, clear-cut rule for determining residency for Canadian purposes. For example, the date of your actual landing in Canada for immigration purposes does not definitively determine your residency for tax purposes.

Residency is a question of fact and the courts have established a number of criteria that the Canada Revenue Agency uses to determine residency for tax purposes. For example, what primary and secondary ties do you have to Canada? What ties do you have to your home country? Is there a treaty? Are you a resident of the other country under that treaty? The list goes on!

Residency is a common topic in my tax practice. It’s always recommended that taxpayers seek out professional guidance from a cross border/international tax advisor before establishing or breaking Canadian tax residency.

Happy Mothers Day to all the beautiful mothers today. “The natural state of motherhood is unselfishness.” — Jessica Lange 💐

Did you get your household 2026 Census questionnaire yet? If so, will you be participating in it as required by law?

Been reading various news reports of people sending their 2026 Census questionnaires back out of protest….what’s your opinion on this? 🤔

Personally I think it’s important to participate and complete the Census regardless of your political views. The Census paints a portrait of Canada’s population and farming sector. The information everyone provides produces statistics that communities, businesses, and governments rely on to plan services, develop programs, and make informed decisions about employment, schools, public transportation, hospitals and more.

Canada - June 15 is the deadline for filing your tax return for self-employed individuals (tax payables, if applicable, are still due on April 30th). June 30 is the deadline for filing Section 216 non-resident rental tax returns

U.S. - June 15 is the deadline for filing your tax return if you are residing outside the U.S. on April 15 (you qualified for the automatic two month extension). October 15 is the due date for filing your tax return if you filed an extension

If you have any questions on upcoming tax due dates, please reach out (in May 😬).

Had a heated discussion about investing the other day. Saw this online and had to share it - it’s not mine and I’m not sure who made it - but it’s so true.

Hence the heated discussion with a family member. He likes his dividends. He mainly targets companies that pay consistent high dividends and he reinvests them. And me, well I prefer investing for growth…I like unrealized gains. Don’t get me wrong, I’ll take dividends too but there’s truth in this picture. Maybe I’m biased because I get to see the tax side of it and it hurts when there’s another hand, called CRA, constantly taking a piece of the pie!

So how did the heated discussion end? My opponent abruptly ended it by saying “do you know who pays taxes from investments….Those who make money. Do you know who doesn’t pay tax….Those who don’t make money or loose money….”💰

I once had a client who had a substantially large tax payable despite tax planning. Naturally I dislike delivering bad news. But when I told him he wasn’t upset and he was expecting it. Instead he said to me that he is blessed to make that much money to be privileged enough to pay such a tax bill and give back to society. He really was wealthy. So there’s that.

What side are you on!? Pro dividends, pro gains or a bit of both? Heck, any passive income is good income right!? 🤔

taxstrategies

Breaking news: taxes have officially been canceled 🎉Just kidding… April Fools 😄

The April 15 United States tax deadline is quickly approaching 📅 It’s very busy around here, working around the clock to get U.S. clients filed or extended by April 15 and then focusing on the Canada side. As always, client work is delivered based on when full information is received on a first-in first-out basis.

If you’re not quite ready to file on the U.S. side you may be able to request an extension using Form 4868—giving you additional time to submit your return. Keep in mind, an extension to file is not an extension to pay. Planning ahead can help you avoid unnecessary stress and stay compliant this tax season.

Last week, Bill C-4, received Royal Assent in Canada. That includes the enhanced GST rebate for first-time home buyers.

CRA announced applications can be made but there will be a delay for purchase contracts entered March 20/25 to May 25/25. This is likely because the effective date was revised to March 20 from May 26 during the legislative process.

See the CRAs GST rebate for first-time home buyers application link below:

https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/gst-hst-rebates/first-time-home-buyers-gst-hst-rebate.html