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WHAT’S THE DIFFERENCE BETWEEN BOOKKEEPING AND COMPILATION?

They are two separate services. Bookkeeping is a non-attest service, and the compilation is an attest engagement. Bookkeeping is all about recording of financial transactions, bookkeepers handle the day-to-day tasks of recording financial transactions, oversee a company’s financial data and compliance by maintaining accurate books on accounts payable and receivable, payroll, […]

WHAT SHOULD I DO IF I RECEIVE A TAX INSPECTION LETTER FROM THE CRA AFTER FILING A PERSONAL TAX RETURN?

When you receive a letter or call from the CRA after filing your personal taxes telling you that your income tax return is under review, don’t panic. It is important to know that this is a tax review and not a tax audit. The CRA sends about 200,000 of these […]

TAX RETURNS FOR MICRO-BUSINESSES

Some people ask, I am a TikTok internet celebrity, and I sell products through internet broadcasting, how should I file my tax returns? Others ask, I quit my job and am now a full-time Uber driver, how do I file my taxes? While some others ask, I purchase goods from […]

TAX OBLIGATIONS FOR NON-RESIDENTS OF CANADA

Some clients often ask us: I’m a non-resident of Canada, do I still need to file taxes in Canada? I thought only residents are obligated to pay tax? That’s not necessarily the case, non-residents of Canada who have income from Canada are also required to pay tax in Canada. According […]

T1135 DECLARATION OF OVERSEAS ASSETS

Form T1135 was first published in the 1996 federal budget. Canada’s Income Tax Act was also amended, and since 1997, Canadians who own specified foreign property valued more than $100,000 at any time during the year are obligated to complete and file the Form T1135 to CRA. This filing requirement […]

T1134 INFORMATION RETURNS RELATING TO FOREIGN AFFILIATES

Form T1134 is an information reporting requirement for Canadian taxpayers. Using Form T1134, Canadian taxpayers are required to provide certain information about foreign affiliates in which they are shareholders. A party filing Form T1134 is called a “reporting entity” and includes individuals, corporations, trusts, and partnerships. A foreign affiliate is […]

SPECULATION AND VACANCY TAX IN BC AND EMPTY HOMES TAX IN VANCOUVER

Please do not confuse BC’s Speculation and vacancy tax with Vancouver’s empty home tax, to avoid potential trouble caused by the failure of declarations. Speculation and vacancy tax in BC is an annual tax based on how owners use residential properties in major urban areas in B.C. This tax is […]

NON-RESIDENT RENTAL INCOME WITHHOLDING TAX REQUIREMENT AND FILE YEAR-END INCOME TAX TO CRA

As we all know, residents of Canada are required to file income tax return to CRA according to regulatory requirements. But as a non-resident of Canada, you are required to pay income tax on income received from Canada depending on the types of income. We will focus on “rental income” […]

NET WORTH ASSESSMENT METHOD FROM CRA – SUGGESTIONS FOR FAMILIES WITH HIGHER NET WORTH ASSESSMENT

The net worth assessment method is a method by which the Canada Revenue Agency uses the increase in net worth to extrapolate a taxpayer’s income when the taxpayer’s records are unavailable or unreliable. This method has been mentioned in our company’s tax lectures in the past few years, and it […]

HOW TO PREPARE FOR CANADIAN PERSONAL TAX RETURN?

1. Basic Personal Information Information about you and your spouse and dependents, such as: name, SIN, date of birth, address, and marital status. Tax forms from previous tax years and the Notice of Assessment sent by CRA. 2. Income information The most common forms of income are T forms, such […]

HOW TO DO TAX PLANNING WHEN RUNNING A BUSINESS IN CANADA?

We typically separate tax planning into two stages, prior to establishment and after establishment of the company. Before setting up a company, it is advisable to prepare a business plan and then discuss with a professional on whether it is necessary to set up a company at this stage. According […]

CANADA REVENUE AGENCY INDIVIDUAL TAX INSTALMENT POLICY EXPLANATION

Most taxpayers with wage income in Canada do not need to pay personal income tax in advance because their employer deducts enough tax at source to cover the amount of tax due to them each payroll period. However, those who have taxable income from sources outside of their regular employment, […]

CANADA REVENUE AGENCY CORPORATE TAX INSTALMENT POLICY EXPLANATION

Do you own a corporation in Canada? Do you understand the corporate tax instalment policy? This article will provide you with information about corporate income tax instalments to help you avoid unnecessary interest and penalties. What is the Corporate Tax Instalment Policy Generally speaking, companies must pay their taxes in […]

COMMON TAX SHELTERS FOR INDIVIDUALS – “RRSP” AND “TFSA”

Many people don’t know whether to choose a Registered Retirement Savings Plan (RRSP), a Tax-Free Savings Account (TFSA), or a combination of both to save for the future. In fact, choosing between a TFSA and an RRSP is easier than you think. TFSA makes sense for almost everyone, but RRSP […]

2022 CANADIAN FEDERAL INCOME TAX AND BRITISH COLUMBIA (BC) PERSONAL INCOME TAX BRACKETS AND RATES

Income tax rates or brackets in Canada depend on your gross income and how much is considered as taxable income. Canadian income tax is calculated on a cumulative basis which means the higher your income, the higher your tax rate. In 2022, Canada’s federal tax bracket will increase by 2.4% […]

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