It starts with missing one year. Tax time rolls around and you’re going through some things so you put it off or it slips your mind. Second year – it happens again. It starts to bother you, but life is hectic. Third year: now it’s becoming a habit not to file. Every now and then, [...]
What is double taxation? If you live in one country but earn income from a payer in another country, sometimes that income is taxed by the foreign government. When you file your taxes in your home country, you must declare that income, and it may trigger tax in your home country as well. This situation [...]
Question: My employer classified me as an independent contractor without my knowledge and required me to work 9-5, Monday to Friday, for almost half a year. I did my taxes under the impression I was an employee and now the CRA says I owe them upwards of $8,000. Is there anything I can do? Answer: [...]
Is there a mistake on your taxes? Maybe you missed a tax slip or a receipt when you filed your return. Or maybe CRA made a change to your return based on a misunderstanding. However it happens, you can discover that there's a mistake on your taxes - an error in an income tax [...]
What is the business-use-of-home deduction? Business-use-of-home is a means by which a business owner can deduct expenses for the business use of a work space in your home, as long as you meet one of the following conditions: it is your principal place of business; OR you use the space only to earn your business [...]
The special Work-From-Home deduction relating to Covid-19 came into effect for the 2020 tax year and continued until the end of the 2022 tax year. Let's recap what this deduction does and how to claim it. The Covid-19 Work-From-Home Deduction As a consequence of the Covid-19 pandemic, the Canadian government allowed a special Work-From-Home deduction [...]
Little-known fact: 80% of Canadian income tax filing works on the honour system. During tax season, CRA receives an avalanche of income tax returns; far more than they could ever review in real time. Consequently, they send out most Notices of Assessment having done little-to-no review of what is actually in those tax returns. Unless [...]
The Canada Revenue Agency requests that some Canadians pay their income tax by installments through the year. The majority of Canadians don't have to make quarterly tax installment payments toward their income taxes because their employers deduct sufficient tax at source throughout the year to cover their tax bill. But those who have sources of [...]
We've talked elsewhere about CRA Matching, the process by which CRA takes a closer look at a tax return and the slips on file for a taxpayer to look for errors. Usually, CRA is very good at this. After all, looking at documents and numbers is their stock in trade. In our experience they're [...]
Form T1135 Foreign Income Verification Statement must be filed when a Canadian taxpayer answers 'yes' to the question "Did you at any time in the year own specified foreign property valued at over $100,000 (CAD)?" Watch: Foreign Property and the T1135 However, some real estate is considered exempt from this question, and therefore doesn't trigger [...]
