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

Special Work Site Allowance: Home Base Needed

In a January 29, 2019 Technical Interpretation, CRA discussed the criteria for tax-exempt allowances for board and lodging received for periods an employee was working at a special work site. To be a special work site, the following criteria must be met: the work performed at the location must have been of a temporary nature;the employee must have maintained a self-contained domestic establishment (SCDE) elsewhere which was used as their principal place of residence;the SCDE…

August 30, 2019
Business – Taxes / Corporate Taxes / Individual – Taxes / Tax Planning

Home Buyers’ Plan (HBP): Enhanced Possibilities

The HBP allows first-time home buyers to withdraw amounts from their RRSP to buy or build a home. Budget 2019 proposed to increase the HBP withdrawal limit to $35,000 from $25,000. As the HBP is available to each individual, a couple could access up to $70,000 to assist in a first-time home purchase.

May 30, 2019
Individual – Taxes / Personal Taxes / Retirement / Special Interest / Tax Planning

Canada Pension Plan (CPP) Changes: Costs and Benefits are Increasing

The CPP is beening enhanced. This means that both employees and employers are required to contribute more, but, retirement, survivor, and disability pensions will also increase.

April 1, 2019
Business – Taxes / Corporate Taxes / Individual – Taxes

Commentary on the 2019 Federal Budget

On March 19, 2019 the Honourable Bill Morneau, Minister of Finance, presented the 2019 Federal Budget, Investing in the Middle Class, to the House of Commons. No changes were made to personal or corporate tax rates, nor to the inclusion rate on taxable capital gains.

March 21, 2019
Business – Taxes / Corporate Taxes / Individual – Taxes / Personal Taxes / Special Interest / Tax Planning

Did you buy or sell a house?

CRA highlights relevant tax compliance and planning information if you bought or sold a home.

March 4, 2019
Corporate Taxes / Individual – Taxes / Personal Taxes / Tax Planning

Travel Expenses: Home to Work Site

Although it may be possible to deduct travel amounts against employment income, such amounts are often challenged by CRA.

February 21, 2019
Business – Taxes / Employee Discounts / Individual – Taxes / Personal Taxes / Tax Planning

Childcare Costs: Art, Sport, and Education

A September 11, 2018 Tax Court of Canada case examined the eligibility of a number of child care costs with a recreational and educational component. The taxpayer and his spouse worked full time and had two children, aged 10 and 12. The Court acknowledged two separate lines of cases related to eligibility of child care expenses (all informal and, therefore, not binding on CRA). The first set, argues that the definition of a “child care…

January 31, 2019
Educational Taxes / Individual – Taxes / Personal Taxes

2018 Year-End Tax Planning

A list of tax planning considerations. Please contact us for further details or to discuss whether these may apply to your tax situation (250-370-2191).

January 9, 2019
Business – Taxes / Individual – Taxes / Personal Taxes / Professionals / Tax Planning

Director’s Liability: Helping Out Family

Being a director of a corporation comes with many responsibilities. Failing to exercise due diligence in ensuring source deductions (such as EI, CPP, and income tax) are properly withheld from wages and remitted to CRA may result in a director’s personal liability for the corporation’s outstanding amount. A June 12, 2018 Tax Court of Canada case examined whether an individual who set up a corporation (along with a bank account) for his brother to operate…

October 29, 2018
Business – Taxes / Charities / Corporate Taxes / Individual – Taxes / Personal Taxes / Special Interest