Businesses can appoint someone else, often a tax professional, to deal with the Canada Revenue Agency (CRA) on their behalf. In order to have online access to tax information about the business, the representative must currently file a Form RC59 with the CRA. The CRA has announced that, after May 15, 2017 Form RC59 will no longer be used to obtain such online access. Instead, the representative will need to carry out the following steps.
It is important for business owners to keep in mind some of the most common errors to avoid getting on the wrong side of the government agencies, and using a business representative can be to you advantage.
If you or your spouse carried on a business in 2016 , your personal return for 2016 has to be filed on or before June 15, 2017.
However, if you have a balance owing for 2016, you have to pay it on or before April 30, 2017.
If you earned self-employment income from a business you operate yourself or with a partner, you must report it.
Keep thorough records if you own a business or are engaged in a commercial activity. The records have to provide enough detail to determine the taxes you owe and support the benefits you are claiming, and must be supported by original documents.
Québec Budget – Modifications introduced in the 2017-2018 Budget, tabled March 28, 2017 Health Contribution
In its budget tabled on March 28, 2017, the Québec government announced that the health contribution has been abolished retroactively beginning with the 2016 year for all taxpayers 18 years of age or older whose income for that year was under $134,095.
Taxpayers with income over $134,095 for 2016 will have to pay, unless exempt, a health contribution equal to the lesser of the following amounts: $1,000 or 4% of their income in excess of $134,095.
There are important deadline dates that apply to all Canadian returns and tax slips which are required to be filed during 2016. To avoid penalites all returns must be postmarked by the due date specified.
The Canada Revenue Agency has indicated that an indexing factor of 1.4% will apply to federal individual income tax brackets for the 2017 tax year. The personal income tax brackets and rates which will apply for 2017 are therefore as follows.
$11,635 to $45,916 ………… 15%
$45,917 to $91,831 ………… 20%
$91,832 to $142,353 ……… 26%
$142,354 to $202,800 …… 29%
Over $202,800 ……………… 33%
The federal government does not impose a general or high-income individual income tax surtax.
At Expert Fiscaliste let us prepare your tax returns for you. Our tax experts help you get every tax refund you deserve because we know how hard you work. This means that we work for you to make sure you get all the deductions and tax credits you are entitled to and offer you year-round tax advice. Rapidity changing and increasingly complex tax legislation means that experienced personal tax return preparation is essential for all individuals. Our experts receive extensive training to keep current on all the tax changes to ensure you get back all the money you’re entitled to. Expert Fiscaliste will support you throughout the year if you are audited or asked questions by government authorities or interested in tax planning.
It’s that time of the year again and we offer convenient, accurate, and affordable preparation of all types of tax returns. We’re equipped to handle any tax situation, including personal returns, rental properties, estate/trust, and foreign income. We’ll make sure that you get the maximum refund possible, and we provide you with tax support after the tax returns are filed. Just follow three simple steps. For more information on how click here for our PDF
Tax Returns can be complicated and extremely time consuming. Tax payers can be particularly challenged and stressed in knowing what information is required in compiling a tax return. Use our check list to help you prepare the documents that you will need for your 2016 tax return.
Tax-free savings accounts are available for Canadian residents who are 18 years of age or older. The first tax year that they were available was 2009.
There is no deadline for contributions to a TFSA, as the unused contribution room is carried forward into the next year. However, a withdrawal in any year increases the TFSA room in the following calendar year. Thus, if you are thinking of making a withdrawal close to year end, make sure it is done by December 31st, in order to have the withdrawal amount added back to the TFSA room sooner.
In a tax-free savings account:
All investment income (interest, dividends, trust distributions and capital gains) will accumulate tax free
Considering this all capital losses are not tax deductible, and
not eligible for Canadian dividend tax credits
Interest on money borrowed to invest in TFSA is not tax deductible
Contributions are not tax deductible
Excess contribution are subject to 1% monthly tax
Contributions are reported directly to CRA by your financial institution (ask your tax professional for your details)
2017 contribution annual limit is $5,500, for total of $52,000 contribution room
2015 limit $10,000
2013-2014 limit $5,500 annually
2009-2012 limit $5,000 annually
Withdrawals are not taxable
Death of the TFSA Holder
Can name a spouse or common-law partner as “successor holder” and on death the spouse keeps tax exempt status without affecting the spouse’s contribution room
Martial Breakdown or divorce
Can transfer directly to former spouse without affecting their contribution room.