Personal

tax

Employment Expenses for Commissioned Employee: Sponsorship (part 1)

Leave a Comment / July 28, 2023 / Accounting, Bookkeeping, Business, Calgary, Financial Statements, Payroll, Personal, Tax

In a January 23, 2023 French Court of Quebec case, a commissioned salesperson deducted nearly $600,000 over 2015 and 2016, in sponsorship expenses of a professional cycling team in Canada. The individual was an investment advisor and reported commission income of $1,493,910 and $1,263,360 and taxable capital gains of $2,276,374 and $99,767 in the respective …

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Small Business Succession: Many Business Transfers Coming Shortly

Leave a Comment / July 25, 2023 / Accounting, Bookkeeping, Business, Calgary, Financial Statements, Payroll, Personal, Tax

The Canadian Federation of Independent Businesses (CFIB) released a report on January 10, 2023, focused on succession expectations for small businesses. It included the following survey responses:  76% of small business owners (constituting $2 trillion in business value) are planning to exit their business in the next 10 years;  9% have a formal business succession …

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epmloyees

Employee Time Theft: Some Challenges

Leave a Comment / July 19, 2023 / Accounting, Bookkeeping, Calgary, Payroll, Personal, Tax

A January 11, 2023 BC Civil Resolution Tribunal case addressed a claim for wrongful dismissal. The employer filed a counterclaim in respect of a 50-hour discrepancy between the employee’s timesheets and tracking software data over a period of about a month during which the employee was working remotely.  The employee argued that significant hours were …

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grocery rebate

THE GROCERY REBATE (PART 2)

Leave a Comment / June 19, 2023 / Accounting, Bookkeeping, Calgary, Family, Financial Statements, Payroll, Personal, Tax

(Please see the beginning of the article here) Budget 2023 proposes to introduce an increase to the maximum GSTC amount for January 2023 that would be known as the Grocery Rebate. Eligible individuals would receive an additional GSTC amount equivalent to twice the amount received for January. The Grocery Rebate would be paid as soon …

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grocery rebate

THE GROCERY REBATE (PART 1)

Leave a Comment / June 14, 2023 / Accounting, Bookkeeping, Calgary, Family, Financial Statements, Payroll, Personal, Tax

The Goods and Services Tax Credit (GSTC) helps to offset the impact of the GST on low- and modest-income individuals and families. The GSTC is non-taxable, income-tested, and indexed to inflation. For the 2022-23 benefit year (July 1, 2022 to June 30, 2023), the current rules provide (without regard to the November 2022 top-up) the …

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Registered Education Savings Plans (part 2)

Leave a Comment / June 7, 2023 / Accounting, Bookkeeping, Calgary, Family, Financial Statements, Payroll, Personal, Tax

(Please see the beginning of the article here) Allowing divorced or separated parents to open joint RESPs At present, only spouses or common-law partners can jointly enter into an agreement with an RESP promoter to open an RESP. Parents who opened a joint RESP prior to their divorce or separation can maintain this plan afterwards, …

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tax

ALTERNATIVE MINIMUM TAX FOR HIGH-INCOME INDIVIDUALS (PART 2)

Leave a Comment / June 5, 2023 / Accounting, Bookkeeping, Calgary, Financial Statements, Payroll, Personal, Tax

(Please see the beginning of the article in our previous post) Deductions and Expenses Under the new rules, the AMT base would be broadened by disallowing 50 per cent of the following deductions: • employment expenses, other than those to earn commission income; • deductions for Canada Pension Plan, Quebec Pension Plan, and Provincial Parental …

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tax

ALTERNATIVE MINIMUM TAX FOR HIGH-INCOME INDIVIDUALS (PART 1)

Leave a Comment / May 31, 2023 / Accounting, Bookkeeping, Calgary, Financial Statements, Payroll, Personal, Tax

The Alternative Minimum Tax (AMT) is a parallel tax calculation that allows fewer deductions, exemptions, and tax credits than under the ordinary income tax rules, and that currently applies a flat 15-per-cent tax rate with a standard $40,000 exemption amount instead of the usual progressive rate structure. The taxpayer pays the AMT or regular tax, …

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tax

Registered Education Savings Plans (part 1)

Leave a Comment / May 27, 2023 / Accounting, Bookkeeping, Calgary, Family, Financial Statements, Payroll, Personal, Tax

Registered Education Savings Plans (RESPs) are tax-assisted savings vehicles designed to help families accumulate savings for the post-secondary education of their children. Contributions to RESPs may be eligible for government matching grants, such as the Canada Education Savings Grant. Low- and middle-income families may also qualify for Additional Canada Education Savings Grants or the Canada …

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tax

Deduction for Tradespeople’s Tool Expenses

Leave a Comment / May 22, 2023 / Accounting, Bookkeeping, Calgary, Financial Statements, Payroll, Personal, Tax

Under the deduction for tradespeople’s tool expenses, a tradesperson can claim a deduction of up to $500 of the amount by which the total cost of eligible new tools acquired in a taxation year as a condition of employment exceeds the amount of the Canada Employment Credit ($1,368 in 2023). The total cost of eligible …

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