Tax Shelter Related Issues - What to Look Out For

Tax Shelters are the stuff of legend. Often times these instruments are publicized in the media for providing tax evasion strategies to the extraordinarily rich. On the other hand, illegitimate tax shelters use of tax law, inevitably earn the wrath of GAAR (General Anti Avoidance Tax Rules designed to ferret this behavior out) from CRA and the public at large. 

The CRA is on Strike! Is That Really a Bad Thing?

Well that all depends on if you are filing corporate or personal taxes. But we have you covered. Read more on how the Government of Canada is handling the CRA strike and how it could affect your business, trust, or personal return. 

Around the Courts (Restaurant Gratuities and Tips)

Recent courts have ruled that tips to servers are not only taxable (if they are paid through the employer) but are subject to EI and CPP withholdings as well.

On tips that are mandatory, GST/HST must also be applied to the tip.

Watch Out For Short Taxation Years

Corporations can be deemed to have a year-end in the middle of their fiscal year for several different reasons.

A change in control of the corporation or a change in ownership could trigger a financial year-end meaning your tax return needs to be filed within 6 months of the deemed year-end. This could result in numerous negative side effects.

Simplified Instalments if You Have the Cash

Did you know if you pay a personal or corporate tax installment early the CRA will credit you with “offset” interest at the same rate that applies to your late payments? The “offset” interest rate for the amount you paid early can be applied against late installments only; it will not be paid out to you.

What Should You Do If You Disagree With The CRA?

Whenever a private corporation has shareholders from more than one family (and sometimes even within the same family), a shareholders’ agreement should be considered.

The Hidden Benefits of Life Insurance

Reaching for your chequebook or credit card to make charitable donations is the least tax cost-effective strategy.

We’ve identified more than 20 ways to be even more charitable − all of them more tax and cost-effective – encouraging you to look around at your loved ones and consider how you can build a more enduring philanthropic legacy.