PayPal to Disclose Information to CRA
CRA National Headquarters in Ottawa, ON

PayPal to Disclose Information to CRA

CRA has asked for information about PayPal Business account holders to ensure these individuals and corporations comply with their tax obligations. See the PayPal website for information.

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  • Post category:Tax Planning
Business Loss or Personal Venture: Can You Deduct Losses Against Other Income?
Are you looking at a Business Loss or Personal Venture?

Business Loss or Personal Venture: Can You Deduct Losses Against Other Income?

In order for an individual to apply their business loss (where reasonable expenses exceed revenues) to another source of income such as employment earnings (thereby reducing the overall tax liability), the taxpayer must be able to prove that they are truly running a business. That is, they have to show that the undertaking was in the pursuit of profit.

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  • Post category:Gain / Loss

Return of a Gifted Property: Donors and Charities Beware!

In a March 31, 2017 Technical Interpretation, CRA commented on the tax consequences of a charity returning a donated property to the donor. This could occur, for example, when a donation was made specifically for a project that had been halted.

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  • Post category:Charities
Retirement Income Calculator: Ensure you are Financially Ready
Retirement Income Calculator

Retirement Income Calculator: Ensure you are Financially Ready

The Canadian Retirement Income Calculator provided by the Government of Canada estimates retirement income generated through a number of programs such as the Canada Pension Plan, Old Age Security pension, an individual’s employer’s pension plan, RRSPs, and other sources based on past and intended contributions.

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  • Post category:Retirement
Employee Discounts on Merchandise: Change in CRA Policy
Employee Discounts on Merchandise: Change in CRA Policy

Employee Discounts on Merchandise: Change in CRA Policy

Historically, CRA has stated that an employee enjoying a discount on the purchase of merchandise from their employer is only taxable if a limited number of specified situations exist, such as where the employer makes a special arrangement with the employee or group of employees to buy the merchandise at a discount; the employee buys the merchandise for less than the employer's cost; or the employer makes a reciprocal arrangement with another employer so that the employees of one employer can buy merchandise from the other at a discount.

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Professionals’ Work in Progress Exclusion: Changes are Coming
Changes for Professionals' Work in Progress Exclusion

Professionals’ Work in Progress Exclusion: Changes are Coming

In the past, taxpayers in certain designated professions (i.e., accountants, dentists, lawyers, medical doctors, veterinarians and chiropractors) may have elected to exclude the value of work in progress (WIP) in computing their income for tax purposes. This essentially enabled these professionals to defer tax by permitting the costs associated with WIP to be expensed without including the matching revenues.

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Use Government Money for Your Child’s Education
Use Government Money for Your Child's Education

Use Government Money for Your Child’s Education

The Government of Canada wants to help you save for your child’s post-secondary education. The money could be used for CEGEP, an apprenticeship program, trade school, college or university.  When you open and deposit money into a Registered Education Savings Plan (RESP) the Government of Canada will add at least 20 cents for every dollar saved; this is the Canada Education Savings Grant.

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Major Tax Changes Proposed for Private Corporations
Major Tax Changes Proposed for Private Corporations

Major Tax Changes Proposed for Private Corporations

On July 18, 2017, Minister of Finance, Bill Morneau announced the release of a Consultation Paper which focused on three tax practices that the Government considers to provide an unfair tax advantage to private corporations and their owners.

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