Leslie Du - Accounting Associate
The new tax rules related to the passive income grind of the small business deduction ("SBD") apply to corporations with a taxation year that begins on or after January 1, 2019. Under the new rules, passive investment income earned by a Canadian controlled private corporation ("CCPC") can have a negative impact on the corporation's ability to claim the SBD.
Nicole McLaren - Accounting Associate
A TFSA is a type of account granted in Canada, which allows investment income to be earned and withdrawals to be made by an individual without any tax consequences. For example, any interest or dividends earned on funds within a TFSA can be withdrawn on a tax-free basis. This type of account encourages and helps individuals save money for the future.
Cary Selby, CPA, CA - Managing Partner
In part 1 of this blog, we discussed a real-life situation that our firm had encountered with a client whose sole focus was on growing sales. The client cut prices significantly, however, the price cuts were not offset by reductions in product costs, and also resulted in significant increases in overhead expenses. Within three years, a once highly profitable business was forced into bankruptcy.
Amir Ortas, CPA - Accounting Manager
Starting a business could be stressful and challenging. In addition to setting up the logistics and developing a potential client base, entrepreneurs must consider all of the government administrative requirements of owning a business. If these requirements are not complied with, it could become very costly.
Shawn Rosenzweig CPA, CA, B.Sc - Accounting Partner
Kristine DelRosario CPA, CA - Tax Associate
In efforts to modernize the real estate legislation and to raise professional standards, the Ontario government introduced the Trust in Real Estate Services Act in November 2019. With this act came multiple financial benefits for real estate agents, including better tax rates, tax deferrals and income splitting opportunities.
Cary Selby, CPA, CA - Managing Partner
Many years ago, our firm was asked to take over as accountants for a profitable distribution business. The business had been run successfully for well over 25 years. As the founder moved towards retirement, he brought his son (Junior) into the business to eventually succeed him as President and CEO. The business continued to thrive, with growth averaging about 5% per year.
Howard Lerner, CPA, CA, FCA (UK) - Partner
At SBLR we see many companies not wanting to commit resources to have employees but would rather engage independent contractors. Of course the reasons for not wanting to have employees are many: from administration, vacation pay, legal responsibility, payroll taxes to remit monthly (with severe penalties for late payment), and many more.
JingJing Shen, CPA - Accounting Associate
Canada Revenue Agency (CRA) randomly selects taxpayer's return to do pre or post assessment reviews to ensure the return was filed accurately. The following items are frequently reviewed, so be prepared with supporting documents.
Shawn Rosenzweig CPA, CA, B.Sc - Accounting Partner
In efforts to build a clean economy, Ottawa is incentivizing Canadians to take a step that would give them the opportunity to reduce taxes while helping the environment.
Frank Bilotta CPA, CGA - Tax Partner
A properly designed estate plan will ensure that your financial objectives provide tax minimization on: income earned during your lifetime, dependant income provided after your death, transfer of your wealth on death, and asset protection
Hafsa Sharif, CPA, CA - Accounting Associate
Paying tax bills could put a major dent in your pocket, making it difficult to reach your financial goals. Below are 5 great ways to reduce your tax bill.
William Wedlock, CPA, CMA - Accounting Associate
Gone are the days of maintaining your books by hand in a ledger. The big names in bookkeeping solutions such as Intuit and Sage have spent the last few years moving their resources away from their desktop platforms, focusing on new online platforms instead under the guise of "Cloud Bookkeeping".
Christeen Richards, CPA, CA - Accounting Associate
A common question posed to many accountants is, "Should I purchase my vehicle or lease it?". The answer to this loaded question is not a "yes or no", but rather an "it depends". This question is usually followed by the all-important question, "Do I buy the vehicle personally or through the corporation?". This latter question is jam-packed in itself and can be dealt with at another time.
David Reine, CPA, CA - Accounting Partner
Much has been made recently about the selling of residential real estate and the need to report those sales to the Canada Revenue Agency (CRA). What is not always fully understood, when is the sale tax exempt (where an individual claims the principal residence exemption), 50% taxable (where the sale is considered to be a capital gain) or 100% taxable (where the proceeds are considered to be on account of business income).
Kasim Tanvir, Accounting Associate
Olivia Fei, Tax Associate
Shareholders often advance or withdraw funds from a corporation. For accounting and tax purposes, this transaction gives rise to a shareholder loan account on the company books. A transaction whereby a shareholder advances funds to provide capital for the business is routine. However, shareholders should be wary when withdrawing funds, and those withdrawals exceed the original amounts advanced to the corporation.
Beginning June 13th, 2019, any federally incorporated private corporation is required per the Canada Business Corporations Act (CBCA), to create and maintain a new type of shareholder register. This will not apply to public corporations. The new register, in addition to the shareholder and director registers, will provide information with respect to individuals who hold significant control in the respective corporation.
Most of us have gone through the pain of losing someone close to us. However, have you considered yet the tax consequences when you pass away? Typically, filing a final personal income tax return and planning for the final tax on death is not an area that is addressed proactively. Nevertheless, it is important to be aware of the tax consequences on death.
When it comes to moving to a foreign country, there are several tax considerations that need to be reviewed which could drastically impact your cash flow position on the move.
On March 19, 2019, Finance Minister Bill Morneau tabled the Liberal government's final budget pre the fall election. The Budget did not include any changes to personal and business tax rates, or any substantive effort to improve the efficiency of the Income Tax Act.
In an effort to give back to the community, SBLR selects an internal Charitable Committee each year to raise funds for some very worthy charitable organizations.
Paying your invoices online is simple and convenient.
Giving to charity can be a great way to support your community and to feel good. Income tax credits are a great bonus!
Let's fear not - accounting isn't disappearing. Technology has given our field a whole new set of opportunities to continue developing professional relationships and supporting new businesses.
Operational strategies consist of the elements necessary to support a business' corporate objectives and to make the best use of the resources available. Robust operational strategies involve the implementation of ongoing improvements to a business in order to achieve competitive advantage in the marketplace.
When a country has as much to offer as Canada, it is easy to see why hundreds of foreign investors want to set up operations here.
For those of us managing a business, an essential aspect of success is the establishment of clear goals and strategies. The importance of these tools is that they set the basis against which business performance can be reviewed and measured.
Applying for the SR&ED tax credit is a complex matter for which it is strongly encouraged to seek expert advice. We were recently referred to a mid-size manufacturing company that designs and builds custom motors for clients worldwide. We had a meeting with the owners to discuss the potential of filing a SR&ED claim, which is something their existing accountants had neglected to explore with them.
Finance Minister, Bill Morneau, tabled the Liberal government's 2018 Federal Budget on February 27, 2018.
Today's marketplace can be fiercely competitive and if you're not grabbing every advantage of your business, you're leaving yourself at risk of being chewed up and spit out by the competition.
Making a Difference Together
SBLR Team is a proactive and involved team. We devote time and resources to raise funds for some very worthy charitable organizations which are making a meaningful impact on our community.
The federal government provided draft legislation on December 13, 2017 to clarify the income splitting proposals initially announced on July 18, 2017.
For family members to avoid being just subject to tax at the highest marginal income tax rate from income splitting, they must provide a "regular, continuous and substantial" contribution to the family business.
To recap, SBLR met with Joe, owner of a mid-sized food processing company, who agreed to sign with SBLR for his current years' SR&ED claim. Continuing the process, after his tax return was submitted to CRA, along with the technical report, Joe was requested a site visit for a scientific audit.
In 2016, the federal and provincial governments of Canada paid out more than $4 billion to over 18,000 companies across Canada through the Scientific Research & Experimental Development (SR&ED) program. Designed as an incentive for companies to invest in innovation and technological advancement, the program can be a major competitive advantage for companies that file claims and receive cash refunds.
As part of our 1st Year Anniversary, to reflect on our accomplishments, we invited our clients to tell us about the service received since the relaunch of SBLR.
Companies that stay in business tend to do so because they are able to solve a need or fulfill a desire of their clients and customers. And businesses that have thrived over the long-term, tend to do so because they have constantly found ways to outshine the competition by designing a better mousetrap or creating more efficient process. But the curious thing is that very few of these creative entrepreneurs are capitalizing on their advancement or improvements.
One year ago, we re-established SBLR to better serve our entrepreneurial client base. Now, thanks to our great clients, we are happy to celebrate the completion of our first year. We have built many great relationships, and we look forward to strengthening them even further.
The proposed tax changes announced by the Liberal government on July 18th, 2017 have gone beyond tax fairness to actually proposing a tax environment that targets small business owners who are significant contributors to Canada's economic and job growth and success.
On July 18, 2017, the Federal Government released draft legislation to amend the Income Tax Act which would target perceived unfair tax advantages currently obtained by private corporations and their shareholders.
One of the keys to the ongoing success of SBLR is the great team we have been able to put together. Our team is the key to great client service, and we are pleased to announce our team promotions and additions.
Charles Sousa, Minister of Finance, presented the 2017-2018 Ontario budget the afternoon of April 27, 2017. The Budget outlines the creation of a stronger Ontario by stimulating economic growth and supporting business competitiveness.
We are thrilled to announce that Nelia Galapon has been promoted to a Principal of the firm. Nelia has been a key member of the team since 1989, and is well known for her dedication to her clients and their financial well-being.
On March 22, 2017, Finance Minister Bill Morneau tabled the Liberal government’s 2017 federal budget.