Saving for retirement or a rainy day? Choosing whether to invest the savings in either an RRSP or TFSA is a common question. Age, income and wealth all factor in to the choice that is right for you. The most important thing is to start saving! The following chart lists the differences between the two plans. RRSP TFSA Tax deductible contributions Non-deductible contributions Taxable withdrawals Tax exempt withdrawals No minimum age, contribution room is determined by earned income Must be 18 to contribute Must be withdrawn or converted to a RRIF by age 71 No upper age limit Contribution limit ...

This has been a busy year at the tax department as several long standing tax benefits and reporting has changed. It is always beneficial to acquaint yourself with the tax changes, this year in particular it is crucial as you will read below. As always, we are here to discuss how the changes affect you. Some Changes for 2016 Source: This information is directly from the CRA website. Children’s arts amount – The maximum eligible fees per child (excluding the supplement for children with disabilities) has been reduced to $250. Both will be eliminated for 2017 and later years. For ...

It seems like only yesterday we said good-bye to this tax, yet here we are again having to deal with it.  I miss the single sales tax already! Most businesses that are required to register should have already received their Registration Package.   If you haven’t received your package there are several ways to register: Online In person By mail or fax Are you required to register?  If your business has taxable sales or services you are required to register.  A better question would be ‘What is a taxable sale or service?” It is probably easier to tell you what isn’t… Some of ...

It is once again time to prepare the T4s for your employees; these must be received by CRA by February 28.  Internet filing of the T4s is a convenient way to complete this task.  You will need the Web Access Code (WAC).  The letter containing this information was sent out by CRA earlier this month.  This letter should be retained for use in future years – WAC will no longer be issued each year. There have been a few changes to taxable benefits in the last year.  To find out the taxation of these benefits refer to the handy chart CRA has prepared.  It is a great reminder ...

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Choosing to incorporate your business has many tax advantages, especially if the corporation meets the criteria of a CCPC (Canadian Controlled Private Corporation).  The three main tax advantages include: 1.  Reduced corporate tax rate.  For corporations resident in BC that qualify for the Small Business Deduction, the corporate tax rate is only 13.5%! (That is a reduction of 17%). 2.  Additional month to pay corporate tax.  The due date for corporate tax payable is extended by one month (from two months after the year end to three). 3.  Capital gains exemption.  When a CCPC is sold, there is an entitlement to the $750,000 enhanced ...