Monthly Archives: July 2020

Costs and Rebates: FEDERAL CARBON TAX

On December 16, 2019, the Department of Finance announced the climate action incentive payment amounts for 2020. These payments are associated with the provinces that are subject to the federal backstop legislation. The following amounts may be claimed on the 2019 personal tax returns: Category Ontario Manitoba Saskatchewan Alberta Single adult/first adult in a couple… Read more »

The 20 Hours Test: TAX ON SPLIT INCOME

The tax on split income (TOSI) can subject various income sources, with taxable private corporation dividends being the most common, to personal tax at the highest marginal rate. One of the exceptions from TOSI occurs when the income recipient is actively engaged in the business. An individual will be deemed to be actively engaged in… Read more »

Do they Trigger Payroll Audits?: CPP/EI RULINGS

In a June 7, 2019 Technical Interpretation, CRA commented on whether a CPP/EI ruling triggers follow-up assessing and review. These rulings often determine whether a worker is a contractor or employee, and therefore whether EI and/or CPP should be submitted to CRA. They also often consider whether an employee that is a family member of… Read more »

Shareholder-Employees: TRAVEL EXPENSES

For an employee to deduct travel or motor vehicle expenses against employment income, the employee must be normally required to work away from the employer’s place of business, be required to pay the travel expense under the contract of employment, and have a signed and completed T2200. Also, the employee cannot receive an allowance excluded… Read more »