If you’ve recently incorporated your small business, congratulations! Incorporation comes with lots of new advantages… and a handful of new responsibilities. One of the first decisions you’ll need to make is choosing your fiscal year-end (FYE). If you’ve never dealt with one before, don’t worry — most new business owners haven’t. Let’s break it down [...]
Coming home from Mexico, where it was a balmy 27°C, to an overnight snowfall here in Canada was a bit of a shock to the system. Most people prefer life with as few shocks as possible—and I’m no different. That’s one of the reasons I’m a mostly conservative tax preparer. Here’s the thing: the CRA [...]
Relief Now Available to More Canadian Tax Filers The Voluntary Disclosure Program (VDP) for overdue returns and filings has existed for a long time. In short, a submission under the VDP is a request that CRA waive the late filing penalties. Generally if this is the first time you've filed a late return and if [...]
Believe It or Not, They’re Not the Same When it comes to dealing with the Canada Revenue Agency (CRA), timing matters — both for filing and for paying. Missing a deadline can lead to financial consequences, but many people confuse penalties and interest, or assume they mean the same thing. Understanding the difference can help [...]
If you have a completed GST-HST worksheet you can easily file your GST-HST return, either by using the figures on the Worksheet and transfering them to a return, or by signing and dating the worksheet itself and mailing it to the Canada Revenue Agency. (If you're not sure what a GST-HST worksheet looks like, [...]
You may be feeling guilty or ashamed about filing late returns going back a few years, but there’s probably a good reason you fell behind. Why Do People File Late? It starts with the first one... Lots of people who normally stay on top of their taxes end up slipping one year because life throws [...]
Contributing to your RRSP is a great thing, but an RRSP loan isn't always the best way to do it. Around this time of year you’ll start seeing banks promoting the idea of RRSP loans, where you borrow money to make an RRSP contribution. If you have no cash available, and if an RRSP contribution [...]
What does a Demand to File letter look like? A Demand to File letter, usually referred to simply as a Demand letter, is a request for a tax return from the Canada Revenue Agency (CRA). CRA sends out demand letters for returns that Have not been filed Are likely to have tax owing CRA doesn’t [...]
Can a joint-tenant qualify as a first-time homebuyer? Q: I'm a joint tenant in my current home, and I'm ready to buy my own place. Can I use the Home Buyers' Plan (HBP) or the Tax-Free First Home Savings Account (FHSA) as a first-time homebuyer? A: To take advantage of the HBP and/or FHSA, [...]
Understanding Your CRA Notice of Assessment Receiving a notice of assessment from the Canada Revenue Agency (CRA) can be an anxiety-inducing moment, especially if it states that you owe tax you believe you've already paid. However, before succumbing to panic, it's crucial to understand the nuances of the assessment process and how to effectively [...]
