tax planning
Eligible and Non-eligible Dividends
Eligible dividends An eligible dividend is any taxable dividend paid to a resident of Canada by a Canadian corporation that is designated by that corporation to be an eligible dividend.…
Taxable Benefits – Work Clothing
Uniforms are not a taxable benefit if the purpose is to protect the employee from the job hazards or are distinctive uniform such as identifying the employer. If it does…
2016 Federal budget
2016 federal budget proposes to keep the small business tax rate at 10.5 % after 2016. As a result, the budget also proposes to maintain the dividend gross-up rate at 17% and…
tax planning
Automobile Taxable Benefits
Employee's benefit Report the value of the benefit including the GST/HST that applies in box 14, "Employment income," and in the "Other information" area enter code 34 at the bottom of the employee's T4…
Enhanced Universal Child Care Benefit
Enhanced Universal Child Care Benefit
On October 30, 2014 government proposed to increase the monthly UCCB benefit by $60, from $100 to $160 for each eligible child under the age of 6 years effective January…
Shareholder-Employee Loan or Benefit
Where the shareholder is also an employee, following types of loans are not taxable and excluded from income: - a loan to employee who is not a specified employee of…
tax planning
Meals and Entertainment Cost 100% Dedcution
Usually deduction of meals and beverages cost is limited to 50%. This general rules also applies to the cost of meals and entertainment for employees. However there are few exceptions…
Fitness tax credit
Tax on Income Splitting – “kiddie tax”
Income splitting is the process of shifting income within a family to take advantage of the lower tax brackets, deductions and credits available to each family member. Anti-avoidance legislation was…
capital gain reserve
Capital Gain Reserve
Capital Gain Reserve Carry Forward If you have a capital gain, there may be an option to defer or reduce the capital gain tax. In some instances, all of the…