Introduction: Cryptocurrency-Trading Businesses in Canada Canadian cryptocurrency-trading businesses face unique challenges. The mostly unregulated market brings higher risk of fraud and cyber-crime. The volatile markets may bleed profits. And some cryptocurrency traders don’t even realize that they’re carrying on a business, misreporting their profits as capital gains. This article...
Introduction – Indirect Tax Audit Methods Canada’s income tax system is designed around every taxpayer, individual, corporation or trust, filing an annual return which reports all of the income that taxpayer earned during the year. Similarly, GST/HST is administered by requiring suppliers of goods and services to regularly file...
Money transferred from a corporation to its shareholder was reassessed as shareholder benefits This case was a split decision with the taxpayer’s Canadian tax lawyer winning the argument against gross negligence penalties but losing with respect to statute barred years. Mr. Deyab and his spouse carried out engineering consulting...
Introduction – Taxation of Testamentary Trusts and Estates A testamentary trust is one that is created as a result of the death of an individual. Under the Canadian income tax system, once an individual dies, all of that individual’s assets are deemed to have been disposed and then reacquired...
The Canada Revenue Agency’s low prescribed rate opens up income splitting opportunities – A Canadian tax lawyer’s tax guidance The Canada Revenue Agency announced 1 percent prescribed rate starting July 1, 2020 The prescribed rate set by the Canada Revenue Agency (CRA) has been 1 percent since July 1,...
Introduction – Tax Search Warrants Canada’s federal Income Tax Act includes provisions that grant the Canada Revenue Agency (the “CRA”) a wide range of powers for administering and enforcing the Act. For instance, section 231.1 grants the CRA the power to tax audit and inspect the books and records...
Introduction – Tax Search Warrants Canada’s federal Income Tax Act includes provisions that grant the Canada Revenue Agency (the “CRA”) a wide range of powers for administering and enforcing the Act. For instance, section 231.1 grants the CRA the power to tax audit and inspect the books and records...
Introduction – Business Tax Audit Business tax audits are a keyway by which the Canada Revenue Agency (CRA) ensures that a business has fulfilled its tax obligations with respect to income tax, payroll deductions, benefits, remittances, and GST/HST, pursuant to the Income Tax Act and the Excise Tax Act....
An employee housing loan refers to any loan that you can get from your employer to buy a home. This is quite convenient, considering employers offer housing loans at incredibly low-interest rates. Applying for a housing loan not only allows you to buy a conventional house but also empowers...
If you are curious about using a shareholder loan and want to know the potential fallout that it could have for you in terms of taxes in Canada, it is important to educate yourself about these issues well in advance of facing a problem. What Is A Shareholder Loan?...