Reporting Tips for Service Workers
Photo by Stefan Lorentz from Pexels

Reporting Tips for Service Workers

Tips received by servers and other individuals in the service industry are taxable. However, since tips do not show up on T4 slips, some taxpayers are under the false understanding that they are either not taxable, or only partially taxable. In a February 3, 2020 Federal Court of Appeal case, the Court upheld the Tax Court decision that tips received by the taxpayer from his employment as a slot attendant at a casino were properly…

Continue Reading Reporting Tips for Service Workers

How to pick up your 2019 Tax Material

If you would like to pick up your documents please call reception to set up a time: 250-370-2191 extension 0. Once you are in the parking lot, please call again to let us know you are here and we will place your documents (in a folder or envelope) inside our Drop Off / Delivery box for you to pick up.

Continue Reading How to pick up your 2019 Tax Material

COVID-19 Response

For information about how to pick up your tax material that you dropped off please click here. Our office is closed to the public and we are unable to offer an estimated time your tax return will be completed – we will call you when it is ready. Create a 2019 folder with your nameScan or take a photo of all your papers to the folder using appropriate file namesUpload your contents (or create one…

Continue Reading COVID-19 Response

Unclaimed Bank Deposits or Property

Unclaimed property refers to accounts at banks, financial institutions, and other organizations where there has been no activity generated or contact with the owner for a period. Typical forms of unclaimed property can include chequing or savings accounts, term deposits, Guaranteed Investment Certificates (GICs), bank drafts, traveller’s cheques, money orders, and certified cheques. A number of different organizations (depending on the governing legislation) collect these funds and administer the return to their rightful owner, where…

Continue Reading Unclaimed Bank Deposits or Property
Property Flipping: Income or Capital?
House Flipping

Property Flipping: Income or Capital?

In an August 14, 2019 Tax Court of Canada case, at issue was whether the sales of four properties in B.C. were on account of income (fully taxable) or capital (half taxable), and whether they were eligible for the principal residence exemption (potentially tax-free) as claimed by the taxpayer, a real estate agent. Essentially, the Court was trying to determine if the properties were purchased with the intent to re-sell for a profit, or for…

Continue Reading Property Flipping: Income or Capital?

Anxiety, Depression & Phobias: Disability Tax Credit

In an April 3, 2019 Tax Court of Canada case, at issue was whether the impact of an individual’s mental impairment entitled her to the disability tax credit (DTC). The taxpayer suffered from social anxiety, depression and phobias. A taxpayer may be eligible for the DTC if the impairment(s) represents a marked restriction in the ability to perform a basic activity of daily living. In particular, the impairment must affect and permeate the individual’s life…

Continue Reading Anxiety, Depression & Phobias: Disability Tax Credit

Workers Compensation: Replacement Payouts by Employer

In a March 29, 2019 Tax Court of Canada case, the taxpayer had been injured on the job and was held eligible for workers’ compensation (WC) payments by the relevant provincial authority. However, in accordance with the collective agreement setting out his terms of employment, he was paid 100% of his salary by his employer and, therefore, did not receive payments from the provincial WC authority. He argued that the maximum provincial WC should be…

Continue Reading Workers Compensation: Replacement Payouts by Employer

Zero-emission Vehicles: Personal and Corporate Incentives

On April 17, 2019, Transport Canada released details on the purchase incentive of up to $5,000 for zero-emission vehicles as originally proposed in the 2019 Budget. The incentive will apply to new purchases or leases on or after May 1, 2019. To receive the incentive, the manufacturer’s suggested retail price must be less than $45,000 for vehicles with six or fewer seats, while a vehicle with seven or more seats must have a suggested retail…

Continue Reading Zero-emission Vehicles: Personal and Corporate Incentives

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…

Continue Reading Reimbursement For Work Clothing: Taxable