 Scott Park, CPA, CA Many Canadians, especially self-employed individuals, have recently received a letter from the Canada Revenue Agency (CRA) indicating that they may not be eligible for the Canada Emergency Response Benefit (CERB) that they received and encouraged the recipient of the letter to repay the CERB amounts before December 31, 2020. This has caught many Canadians off-guard and has them very worried about making CERB repayments with money that they don’t have.  Scott Park, CPA, CA
If you are someone that already donates to charities, good on you. But instead of cash, if you hold shares on which you have capital gains, you should be aware of the tax benefit of donating shares. Philanthropy and tax planning go hand in hand.  Scott Park, CPA, CA
When there is a Canadian estate and all of the beneficiaries are residents of Canada, the administration and settlement of that estate is generally straightforward. However, when there is a non-resident beneficiary (e.g. someone that lives in the US), this creates additional tax issues for the executor to deal with.  Scott Park, CPA, CA
It is very common for start-up companies to have to incur upfront costs for leasehold improvements or renovation costs on a store front or an office space even before they officially open their doors to the public. For businesses in the start-up phase, cash flow may be very tight, therefore every cent counts. It is important to for new business owners to be aware of the topic of GST and how it can positively impact their business from a cash flow perspective.  Scott Park, CPA, CA
Many Canadians typically start their own business as a sole proprietorship. This form of business is quite common because it’s the simplest way to structure a business while minimizing costs. As the business grows, the topic of incorporating the sole proprietorship becomes something to think about. Here’s what you need to know when converting your sole proprietorship business into a corporation, which could save you thousands of dollars in taxes.  Scott Park, CPA, CA
On December 13, 2017, the Department of Finance released additional guidance on the split income rules for adults that will take effect January 1, 2018. This guidance provides some clarification on the far-reaching tax change proposals initially introduced back on July 18, 2017. The proposal will expand the tax on split income rules that are currently in place related to amounts received by a family member under the age of 18. In this context, "split income" will generally include dividends or interest, but not salary, paid by a private corporation to an individual from a related business. What You Need to Know If a member of a business owner’s family falls under any of these “exclusion categories” noted below, the CRA will automatically decide not to tax them at the highest marginal tax rate.  Scott Park, CPA, CA
Decrease to Small Business Tax Rate Last week, federal finance minister Bill Morneau announced that the federal small business tax rate will decrease from 10.5% to 10% effective January 1, 2018 with a further decrease to 9% effective January 1, 2019. This came as a complete surprise to many considering the announcements he made regarding the proposed tax changes for private corporations back in July to close so called “loop holes” in the Canadian tax system.  Scott Park, CPA, CA
The main difference between charities and NPO's lies in their purpose. A charity must be operated exclusively for one of four distinct charitable purposes:
 Scott Park, CPA, CA
Many people may consider not-for-profit organizations (NPO’s) and registered charities to be the same. However, while both types of organizations may operate on a non-profit basis, the two types are defined differently under the Income Tax Act.  Scott Park, CPA, CA In the 2017 Budget, the Canadian government signaled its intention to target specific tax planning strategies involving the use of private corporations to close tax loopholes and end tax planning strategies that give unintended advantages to some high-income earners at the expense of other Canadians.
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