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The information in this Blog does not replace the law found in the Excise Tax Act ("ETA") and its Regulations. It is provided for your reference only. Also due to regulations change from time to time , please always check on Government's website for updates.

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Taxable benefits

Posted on 21 October, 2019 at 22:15
A gift or award that you give an employee is a taxable benefit from employment, whether it is cash, near-cash, or non-cash. However, there is an administrative policy that exempts non-cash gifts and awards in some cases. Cash and near-cash gifts or awards are always a taxable benefit for the employee. A near-cash item is one that functions as cash, such as a gift certificate or gift card, or an item that can be easily converted to cash, such as gold nuggets, securities, or stocks. A benefit includes an allowance or a reimbursement of an employee's personal expense or to a person who does not deal at arm's length with the employee. Vouchers and event tickets are generally considered non cash gifts and awards ( except movie ticket which is considered a near cash gift or award) An award for an employment-related accomplishment is deferent from performance-related reasons, the latter is considered as reward and taxable benefit, therefore it's FMV(GST/HST apply) should be included in the employee's income. in general words, the non-cash gift or award fall in the policy and not greater than $500 will be exempt, otherwise should be included in the employee's income as taxable benefit. for more information please check " Employer's guide-Taxable Benefits and Allowance" go to https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4130.html. If you provide benefits to your employees, you always have to go through the same steps. If a step does not apply to you, skip it and go on to the next step: 1.determine if the benefit is taxable 2.calculate the value of the benefit 3.calculate payroll deductions 4.file an information return these are outline as employer's responsibilities.

Nutrition Action series-1

Posted on 21 October, 2019 at 20:35

10 种应该选择的最佳食物:

  1. 番薯-富含类胡萝卜素, v-C, 钾 和纤维
  2. 芒果-一杯芒果相当一天需要量 的v-C, 1/3 的v-A, 降压的钾和3 克的纤维。而且是水果中少量用杀虫剂。
  3. 希腊酸奶- 含有比常规酸奶2倍的蛋白, 大约在175克的酸奶中含18克。
  4. 绿花菜-富含v-C,类胡萝卜素,v-K 和叶酸。
  5. 野三文鱼-Omega-3 对心脏病和中风都有预防效果。
  6. 薄脆面包-大量纤维
  7. 鹰嘴豆- 所有豆类都富含蛋白, 纤维, 铁,镁, 钾 和锌。
  8. 西瓜-2杯就含有1/3 日需量 的v-C, v-A, 还有大量的钾, 番茄红素和85克的无盐脂的卡路里。健康吧!:)
  9. 胡桃南瓜-最容易从中获取v-A,v-C,纤维。
  10. 绿叶蔬菜-甘蓝类,大头菜,菠菜, 芥菜, 唐莴苣, 大多绿叶蔬菜富含A,C,K,叶酸, 镁钾钙铁, 黄体素和纤维

总之, 要选择的饮食和适当的锻炼才可以促进身体的健康, 让我们为健康行动起来吧!

Canadian company's common structure

Posted on 1 October, 2019 at 21:30

A couple of friends asked me about the new company’s set up and how they do taxes pay.

I explained to them other day. I feel happy to share this information here below;

In general words, if you are self-employed, CRA consider that you have a business. If you have a business by yourself, you are considered as a sole proprietorship. If you have a business with a partner, then you have a partnership.

For income tax purposes, CRA define a business as an activity where there is a reasonable expectation of profit. However, for GST/HST purposes, a business can also include an activity whether or not it is engaged in for profit and any regular and continuous activity that involves leasing property

The three most common types of business structure are:

• sole proprietorship;

• partnership; and

• corporation.

As a sole proprietor, you may be required to register for the goods and services tax/harmonized sales tax (GST/HST) if you provide taxable supplies in Canada. For more information link to Basic information about GST/HST  https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses.html or consult Guide RC4022, General Information for GST/HST Registrants  http://www.cra-arc.gc.ca/E/pub/gp/rc4022/README.html.

 

For Sole proprietorship pays taxes by reporting income (or loss) on T1 income tax and benefit return. The income (or loss) forms part of the sole proprietor's overall income for the year.

A partnership by itself does not pay income tax on its own. Instead, each partner includes a share of the partnership income (or loss) on a personal, corporate, or trust income tax return.

The above 2 have to either file their financial statements or a numbers of forms as applicable according to CRA, for these forms and guide, please link to:

http://www.cra-arc.gc.ca/tx/bsnss/sm/sttng/menu-eng.html

 

A corporation is a separate legal entity. The owners are referred to as shareholders.

 

 

Canadian company structure

Posted on 1 October, 2019 at 20:50

三种常见的公司结构类型:1. 独立个人;2. 合作伙伴;3. 股份制

这三种类型中, 以第一种最容易成立无繁琐过程,如果是自雇 无雇佣他人 可以选择地登记或不登记,如果公司营业额超过$30k 在单一的一个季度和在四个连续季度中, 就必须登记公司和申请税号, 如果雇佣他人, 还必须申请劳工税务号。 这种公司勿需单独报税, 公司收益报表必须申报在个人年度报税表中 135 to 143行 – 净利 ;162 to 170 行 – 毛利。并且必须在6月15日前完报。第二种公司结构稍微复杂, 需要伙伴有利润和亏损同意书, 关于其他税务和登记也遵循第一种的规律。 股份制公司是在三种中最复杂的,但也有他的税务优势。公司必须申报T2, 并不得晚于公司财务年度之后6个月。 这三种结构都可以其经营性质来确定是否为盈利或不盈利组织, 并且随之享有相应的税务优惠。

相关的表格和填报指南, 请访问CRA官方网站

 

http://www.cra-arc.gc.ca/tx/bsnss/sm/menu-eng.html

 

GIFT Tax Issue

Posted on 30 June, 2014 at 3:10

Gift tax issue

In general saying, there is no gift tax in Canada. If you give the gift of cash, as per Revenue Canada Agency Miscellaneous Receipts NO: IT-334R2 section 4. Amounts received as gifts, which is, voluntary transfers of real or personal property without consideration, are not subject to tax in the hands of the recipient. Therefore gift of cash has no tax implications except that if the gift is made to your spouse, or to a child who is a minor, the "attribution rules" may have the effect of causing you to be taxed on the income earned on the gift.

Attribution rules apply to several situations, including:

• Income and losses from property transferred to a spouse or minor family member

• Capital gains/losses realized on property transferred to a spouse

• Transfers of property to a trust.

Note that in tax terms "transfer" has a broad definition that covers just about any way ownership of a property is moved from one person to another. A transfer includes both a gift and a sale.

For more information, check on

http://www.taxtips.ca/personaltax/giftsandinheritances.htm

It sounds restrictive, but there still can create some tax benefits for you when you make gifts to your family members. For example, you could make a gift of your home and if it was your principal residence for each year you owned it, the transfer will be tax-exempt. To qualify as a principal residence you, your spouse or child must have ordinarily inhabited it.

You also could transfer a non-principal residence, such as a cottage or a rental dwelling, to an adult child and it could qualify as the child's principal residence if the child occupied it. You would be liable for any accrued gain up to the time of transfer, but if the home remained your child's principal residence, there would be no further taxable gain for the child.

You are strong encouraged to consult or engage with your accountant and estate lawyer before you come up with your decision of money or property transferring.

 

information of GST/HST registrant

Posted on 25 June, 2014 at 1:05

Generally, GST/HST registrants have to collect the GST/HST on all taxable (other than zero-rated) supplies of goods and services they provide to their customers. You do not charge GST/HST on these zero-rated supplies. But you may claim ITC on these purchases.

Exempt supplies – are supplies of property and services that are not subject to the GST/HST. GST/HST registrants cannot claim input tax credits to recover the GST/HST paid or payable on expenses related to making exempt supplies. But public service bodies can get rebate for GST/HST they paid related to making the exempt supplies.

You do not have to register GST/HST if:

• you are a small supplier (that does not carry on a taxi business);

• your only commercial activity is the sale of real property, other than in the course of a business. Although you do not have to register for the GST/HST in this case, your sale of real property may still be taxable and you may have to charge and collect the tax. For more information, see Real property; or

• you are a non-resident who does not carry on business in Canada.

• a sole proprietor or partnership or a corporation and your total revenues from taxable supplies (before expenses) are $30,000 or less in any single calendar quarter and in the last four consecutive calendar quarters; A public service body (charity, non-profit organization, municipality, university, public college, school authority, or hospital authority) is defined of $50,000. A gross revenue threshold of $250,000 also applies to charities and public institutions. See Guide RC4082, GST/HST Information for Charities.

Please note if you choose not to register, you do not charge the GST/HST (other than on certain taxable supplies of real property), and you cannot claim ITCs.

Determining the effective date of registration for small supplier, please see

http://www.cra-arc.gc.ca/E/pub/gp/rc4022/rc4022-e.html#volreg

 

 

Form T1135 information updating

Posted on 25 June, 2014 at 1:00

Important change to T1135 Foreign Income Verification Statement, must be filed by:

• Canadian resident individuals, corporations, and trusts that, at any time during the year, own foreign investment property (called specified foreign property) costing more than $100,000; and

• partnerships that hold more than $100,000 in foreign investment property and whose non-resident members' share of income or loss is less than 90% during the reporting period

please link to : http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/frgn/1135-eng.html

 

Form T1135 must be filed with the CRA on or before the filing deadline of the related tax return in the case of a T1, T2 or T3 return, or the filing deadline of the T5013 Partnership Information Return in the case of a partnership. The previous version of Form T1135 will still be accepted for tax years that ended before July 1, 2013.

 

Canadian individual tax return

Posted on 20 June, 2014 at 18:45

One of my friends asked me about Canadian tax system, I put this information here to share with you and any those who wants to know.

Canada tax system

As a resident of Canada for income tax purposes for part or all of a tax year (January 1 to December 31),special for the newcomer, which is their first tax year in Canada, you must file a tax return if you:

• owe tax; or

• want to claim a refund.

What income must you report?

If you were NOT a resident of Canada

You pay Canadian income tax on Canadian source income.

You have to report the following amounts:

• income from employment in Canada or from a business carried on in Canada;

• taxable capital gains from disposing of taxable Canadian property; and

• the taxable part of scholarships, bursaries, fellowships and research grants you received from Canadian sources.

If you WERE a resident of Canada

You have to report your world income (income from all sources, both inside and outside Canada) earned after becoming a resident of Canada for income tax purposes on your Canadian tax return. In some cases, pension income from outside of Canada may be exempt from tax in Canada due to a tax treaty, but you must still report the income on your tax return. You can deduct the exempt part on line 256 of your tax return.

For residential ties, please link to: http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/rsdncy-eng.html

 


How to claim a refund from Gambling Tax withholding in the US?

Posted on 15 June, 2014 at 2:45

Question: how to claim a refund of a tax withholding from gambling winnings in the US?

 

The information below applies to Canadian residents who are not US citizens & are not US residents:

Gambling winnings from US are not taxable in Canada under Tax-treaty. So you do not have to report this type income in Canadian tax return, and do not claim a deduction or credit of this Tax withholding neither. But Gambling winnings are totally taxable in the US, usually subject to 30% withholding tax with payer issuing Form W-2G http://www.irs.gov/pub/irs-pdf/fw2g.pdf or Form1042-S, http://www.irs.gov/pub/irs-pdf/f1042s.pdf shows how much amount being holding in Federal Tax or States Tax if applicable . You may get recovery some or all of the tax. In order to get a refund, Canadian Residents must file a US tax return Form 1040NR & schedule NEC. Instructions for the Form 1040NR:

http://www.irs.gov/pub/irs-pdf/f1040nr.pdf

If you do not already have an individual Tax Payer identification Number (ITIN), you need to apply for one using Form W-7:

http://www.irs.gov/pub/irs-pdf/fw7.pdf

 

 

For more information, please send us your request, we are happy to assist you.

 


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