Davidow & Nelson Blog

The Cost Could Be Very High: COMMINGLING OF PERSONAL EXPENSES IN THE BUSINESS

In a July 23, 2020 Tax Court of Canada case, at issue were a number of expenses claimed by the taxpayers (a corporation and its sole individual shareholder) in respect of the business of selling financial products and providing financial planning advice. CRA denied various expenses spanning 2007 and 2008 and assessed many of them… Read more »

Moving, Medical and More!: REASONABLE MEAL ALLOWANCES

On September 3, 2020, CRA announced that, effective January 1, 2020, the rates allowable under the simplified method related to travel for medical expenses, moving expenses, and the northern residents deduction, as well as meal claims for transport employees, increased to $23 from $17 per meal, for a total of $69/day. This is also the… Read more »

TAX TICKLERS… some quick points to consider…

-In 2021, four special payments to recipients of the Canada Child Benefit, totaling up to $1,200 per child under age six, will be made. -The Canada Emergency Wage Subsidy has been extended to June 2021. Details are still pending for periods after March 2021. – CRA has required Coinsquare, a cryptocurrency trading platform, to provide… Read more »

When to Apply?: CPP

While the normal age to begin receiving regular CPP is 65, individuals can apply to start receiving earlier at a cost, or later for a greater benefit: – If the individual starts before age 65, payments will decrease by 0.6% each month (or by 7.2% per year), up to a maximum reduction of 36% if… Read more »

TAX TICKLERS… some quick points to consider…

– CRA has opined that U.S. Economic Impact payments received by residents of Canada are not taxable in Canada. – 1,252,830 Canada Emergency Wage Subsidy (CEWS) applications have been approved for a total value of $41.12 billion (as of October 4, 2020). – On October 9, 2020, the Government announced that the CEWS program will… Read more »

Making it Look Professional: VIDEO CONFERENCING TIPS

In an April 29, 2020 CPA Canada article, the author provided a variety of tips for professional meetings conducted by online video conference, which has become much more common during the COVID-19 pandemic. Among the tips discussed, the author recommended the following: – having a meeting host to own the meeting, set the agenda, and… Read more »

Supplemental Unemployment Benefit (SUB) Plans: TEMPORARY LAY-OFFS

The purpose of a SUB plan is to allow an employer to make supplemental payments to Employment Insurance (EI) benefits, without eroding those EI benefits. As payments under a registered SUB plan are not insurable earnings, EI premiums are not deducted. In order to be eligible, SUB plans must be registered with Service Canada before… Read more »

Correcting Errors: CHANGES TO PAYROLL

What if I make a clerical, administrative, or system error resulting in a salary overpayment? On April 6, 2020, CRA released the updated guide RC4120 Employers’ Guide – Filing the T4 slip and Summary providing detailed instructions on these such issues. The employer may elect to have the employee repay the net amount (gross amount… Read more »

2020 Personal Income Tax Return Checklist

SECTIONS: A. Information – All Clients Must Provide B. Additional Information – New Clients Must Provide C. Questions to Answer D. Other ___________________________________________________________________________________________ 2020 was an extraordinary year like no other. Due to the significant changes from the COVID-19 pandemic, there are numerous tax issues to be aware of this year. For example, many individuals… Read more »

YEAR-END TAX PLANNING

December 31, 2020 is fast approaching… see below for a list of tax planning considerations. Please contact us for further details or to discuss whether these may apply to your tax situation. SOME 2020 YEAR-END TAX PLANNING TIPS INCLUDE: 1) Certain expenditures made by individuals by December 31, 2020 will be eligible for 2020 tax… Read more »