Professional Corporations & Income Taxes
Many professionals can now incorporate their practices as professional corporations as per the provincial legislation. Professional Corporations are now becoming a very common structure since the majority of provinces have relevant professional regulations. Professional Corporations are popular amongst Accountants, Lawyers, and Medical Professionals. Disclaimer: This post is an income tax perspective of the use of […]
Personal Services Business (Incorporated Employee)
Have you recently received a contract offer from a business that has asked you to incorporate yourself? By the way, this is very trendy in the IT and transportation industry! We receive a couple of requests every day for such incorporations. Most of the time, because the “employer” (yes, the word used by these people) […]
Foreign Accrual Property Income – FAPI CRA
Canadian Resident Taxpayers With Passive Investments In Controlled Foreign Affiliate Are Subject To Complex FAPI Rules. Foreign Accrual Property Income, a.k.a. FAPI in its short form, is defined in subsection 95(1) of the Income Tax Act (ITA). The definition itself is very long and complex. If one must oversimplify, one can say that FAPI is […]
Charge GST to Customers?
When you first start selling goods or services to customers you will want to be onside with your responsibilities for charging GST on what you sell. Generally, most goods and services are taxable for GST. So if you’re unsure, it is best to contact a professional accountant for advice specific to what you are selling. Items which […]
When to Charge PST In BC British Columbia
With the abolishment of the HST (Harmonized Sales Tax) back in 2013, businesses now have to navigate the rules of both the GST (Goods and Services Tax) and the PST (Provincial Sales Tax) sales tax systems when selling goods and services to customers. GST is relatively straight-forward in that it contains much fewer exceptions/variations and special rules than PST […]
Meals & Entertainment – What Can I Write Off?
If you’re operating as an incorporated or unincorporated business, determining if you can deduct an expense for meals isn’t based on a definitive and clear-cut rule. This is a very subjective or grey area that depends on your specific business situation and the situation at the time the meal expense incurred. My hope is that […]