Corporate & Business Tax | International & Non-Resident Tax | Personal Tax for Canadians | Tax Audits

Do You Have to File Foreign Property Reporting (Form T1135)?

ByClaudia Ku

Individuals who are residents of Canada are taxable on their worldwide income.  To ensure all Canadian residents correctly report their worldwide income, the tax law requires Canadian residents annually file with the CRA the Form T1135 Foreign Income Verification Statement (commonly referred to as foreign property reporting) if they own, at any time during a…

Corporate & Business Tax | International & Non-Resident Tax | Personal Tax for Canadians | Tax Audits

Withholding Tax for Services Rendered in Canada by Non-Residents

ByClaudia Ku

Do you engage foreign individual or company (collectively referred to as “non-resident person”) as independent contractor to provide services in Canada?  Are you the non-resident person providing independent contractor services in Canada?  If you answer yes to either question, do you know that payments made in respect of services rendered in Canada by non-residents are…

Corporate & Business Tax | International & Non-Resident Tax | Personal Tax for Canadians | Tax Audits

What Are the Best Strategies to Handle A Tax Audit

ByClaudia Ku

Canada’s tax system is based on self-assessment.  In order for the governments to maintain public confidence in the fairness and integrity of Canada’s tax system, the Canada Revenue Agency (the “CRA“) is empowered to audit taxpayers of their compliance of the Canadian tax laws.  If you have received a notification letter from the CRA that…

Corporate & Business Tax | Personal Tax for Canadians

Salary or Dividends – How Should You Get Paid by Your Company?

ByClaudia Ku

Are you an incorporated business owner wondering whether you should pay yourself salary or dividends?  It is not a simple straight forward question and there is no one-size-fit-all answer to it.  Due to the introduction of eligible and non-eligible dividends and the changes of the gross-up and dividend tax credits in the past few years,…

Corporate & Business Tax | Personal Tax for Canadians

2014 Federal Budget Highlights

ByClaudia Ku

Below are highlights of the proposed tax measures introduced in the 2014 federal budget delivered by Finance Minister Jim Flaherty on February 11, 2014. Measures concerning individuals Personal Income Tax Rates No proposed changes to the progressive personal income tax rates of 15%, 22%, 26% and 29%. Taxation of Estates and Testamentary Trusts The 2014…

Corporate & Business Tax

Changes to Ontario Employer Health Tax (EHT) Effective January 1, 2014

ByClaudia Ku

The EHT is a payroll tax imposed pursuant to the Employer Health Tax Act on all employers who have a permanent establishment in Ontario.  An exemption from the EHT is available for eligible employers (or an associated group of employers) such as: private sector employers; organizations that receive financial assistance from the government (but are…