Commentary

  • 2015 Provincial Budget Commentary

    Yesterday’s Ontario Budget did not include any significant tax measures for either corporations or individuals. Of note, Ontario has decreased many of its corporate tax credits including the Apprenticeship Training Tax Credit, the Interactive Digital Media Tax Credit and the Film and Television Tax Credits. The government also continues to move forward with a new […]

  • 2015 Federal Budget Commentary

    Now that the Federal Budget has been balanced, the focus of the budget includes several small business friendly measures, including most notably a reduction in the small business corporate tax rate. From a personal tax perspective there are a few goodies, as predicted RRIF withdrawals have been changed substantially reducing the mandatory annual payout, and […]

  • Charity Scams – Beware

    In 2013 Parliament added a number of rules designed to thwart charity scams, where taxpayers would purchase sports equipment and other hard goods items at inflated prices and then gift the item with a donation receipt based on the inflated price. Charity Scams Beware

  • 2014 Federal Budget Commentary

    The Federal Budget stays focused on balancing the budget and assisting individuals obtain employment through the Canada Job Grant, a summary of the budget highlights are attached. 2014 Federal Budget Commentary

  • Employment Income, Non Taxable Benefits

    Non – Taxable Benefits Obtained From Employment Income Most of the benefits obtained from employment are considered to be part of your personal income. Here are some of the employment benefit exceptions Money saved by using an employee discount. Meals that are provided at cost. Child Care as long as: It is provided at your […]

  • Employment Income, Taxable Benefits

    Taxable Benefits Obtained From Employment Income The value of most benefits obtained from employment is included as personal income. As a rule, the following must be included as part of your income; All tips, whether included on your T4 or not. Awards of near cash merchandise such as gift certificates from your employer. Some subsidized […]

  • TFSA vs. RRSP – Which is better?

    At a tax update seminar, a calculation was done to compare a Tax Free Savings Account (TFSA) to a Registered Retirement Savings Plan (RRSP). A fixed amount of money was contributed to a hypothetical TFSA. The same amount plus the tax savings from the tax deduction were contributed to a hypothetical RRSP. The funds within […]

  • Damaged Cash

    Bank notes or cash can be inadvertently damaged in a number of ways. They can become mutilated by fire, flood, chemical, explosive, animal, insect or rodent damage. They could become contaminated where there is the risk of exposure to potentially hazardous biological substances such as water, blood, or mould or there is a risk of […]

  • TFSA vs. RRSP – How much can be contributed?

    Both the Registered Retirement Savings Plan (RRSP) and the Tax Free Savings Account (TFSA) have contribution limits, each with their own formula of calculation. The RRSP contribution limit for a particular year is the contribution limit for the prior year less any contributions deducted in that prior year plus 18% of earned income in that […]

  • Employee or Self-Employed

    The question of whether a worker is an employee or self-employed is important to be answered both for the worker and for the payer. If a worker is classified as an employee, the payer becomes classified as his or her employer and  is required to deduct income tax, EI and CPP from the pay of […]

  • TFSA vs. RRSP – How They Differ

    A Tax Free Savings Account (TFSA) and a Registered Retirement Savings Plan (RRSP) are both tax shelters defined by the Income Tax Act enabling Canadians to better save for the future. They have some similarities and some differences. An RRSP allows one to invest money on which income taxes have not been paid. When one […]