Reimbursement For Work Clothing: Taxable

In an April 17, 2019 Technical Interpretation, CRA was asked whether clothing reimbursements paid to maintenance employees were taxable benefits. Employees were not required to wear specific uniforms and were reimbursed based on receipts, to an annual maximum. CRA referred to Guide T4130 Taxable Benefits and Allowances, which states that clothing is generally a personal expense, except where either of the following applies: the employee is required to wear a distinctive uniform while carrying out…

September 12, 2019
Business – Taxes / Contractor / Corporate Taxes / Educational Taxes / Individual – Taxes / Personal Taxes / Professionals / Special Interest / Tax Planning

Accelerated Depreciation: Federal Economic Update Changes

When the Federal Government released its Fall Economic Update on November 21, 2018 it primarily focused on changes to the first year of depreciation on most capital assets.

April 8, 2019
Business – Taxes / Contractor / Corporate Taxes

Construction Activities: Reporting Obligations for Subcontractors

A July 17, 2017 Technical Interpretation examined the conditions which would require the filing of a T5018, Statement of Contract Payments. Where a person or partnership primarily derives their business income from construction activities for a reporting period, a T5018 should be filed for any subcontractor payment or credit made relating to goods or services received in the course of construction activities. The reporting period may be a calendar or fiscal year but cannot be…

August 21, 2018
Business – Taxes / Contractor / Corporate Taxes / Individual – Taxes / IRS / Personal Taxes / Tax Planning

Checking Up On Suppliers Regarding GST/HST?

INPUT TAX CREDITS: Checking Up On Suppliers Do I have to check up on a supplier when paying them GST/HST? Yes! In a January 29, 2016 Tax Court of Canada case it was noted that CRA had denied over $500,000 of input tax credits (ITCs), and assessed penalties and interest, in respect of GST and QST paid to twelve suppliers. Unknown to the taxpayer, the suppliers did not remit the tax. The taxpayer, a scrap…

January 29, 2018
Business – Taxes / Contractor / Corporate Taxes / Tax Planning

CRA Keeps a Watch for the Underground Economy

Underground Economy: Contractors, Online Sales, Farmers Markets …

In recent years, CRA has particularly focused on tracking underground economy activities. One way they are doing this is by obtaining information from key 3rd parties.

October 26, 2017
Contractor

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