For donations of $200 or less, the federal refundable tax credit is 15%. For donations more than $200, the federal refundable tax credit is representative of the top marginal tax rate of 29% even if you were not in that marginal tax bracket.
Tag Archive for Canada
What is Foreign Accrual Property Income (FAPI) and what affect does it have on my corporate taxes?
If you are a Canadian resident and own a foreign corporation that earns passive income, the income needs to be reported on your Canadian tax return even if you never received the funds. However, if the foreign corporation has a loss, the loss is not allowed to offset any other income you have for the year. Instead, the loss can be carried back three years against previous FAPI or forward 20 years against future FAPI.
It is my understanding that the Canada Revenue Agency (“CRA” Canada) has not changed it’s position on the deductibility on interest incurred on borrowing to fund the redemption of shares or the payment of dividends.
Taxpayers who do not agree with their notice of assessments or reassessments can file a notice of objection, appealing the Minister’s decision. Generally, one would first to go the appeals division as opposed immediately to Tax Court. Sometimes we file a T1 adjustment form where the Ministers’ adjustments are simply based on incorrect information. However, where there is a misinterpretation of the facts or it is a grey area, the appeals process is the best route. The appeal process also stops the tax collection process but still with arrears interest accruing on the account until the matter is resolved.
What are the payroll tax rates changes for 2017 for withholdings?Payroll tax rates change every year and it is important for you to know the correct rates when preparing payroll remittances.
Please visit our payroll tax post for more figures and for updated rates for 2017 with 2016 comparison. Or read the entire chart below.
What are the combined tax rates for 2017— Federal and British Columbia? Tax rates change every year and there are several types of income that are taxed differently.
See updated tax rate charts (with estimates) for 2017.
The Canada Revenue Agency (CRA) has issued me a business number. Now what do I do?
In Canada, once a company is assigned a business number then it needs to request which type of program account it needs to be setup. There are five types of accounts:
What is Long-Term Debt on a Balance Sheet?
The Long-Term Debt category appears as a long-term liability on a Balance Sheet. The balance represents the total outstanding balances of all bank loans, mortgages and financial contracts.
What is Deferred Revenue on a Balance Sheet?
The Deferred Revenue section appears under current liabilities on a Balance Sheet. Deferred Revenue represents revenue that is usually received in advance for future goods and services.
What are Government Taxes Payable on a Balance Sheet?
The Government Taxes Payable category appears under Current Liabilities on a Balance Sheet as it is expected that the amounts owing will be paid within one year. It represents funds that a company has an obligation to pay to government bodies such as Canada Revenue Agency (CRA).
What are Accounts Payable on a Balance Sheet?
The Accounts Payable category appears under Current Liabilities on a Balance Sheet, as it is expected that these amounts owing will be paid within one year. It represents funds that a company has an obligation to pay vendors or creditors for goods and services received.
Tax Residency is becoming an increasingly important topic. Every country has its own rules for determining who is and who is not a “tax resident” of that country. The advent of the OCED CRS (“Common Reporting Standard”) has made the determination of “tax residence” increasingly important.
Current Articles
Disproportionate Distributions Won’t Automatically Terminate S StatusOn August 7, 2024, the Tax Court held that the S status of a corporation is not automatically terminated because of disproportionate distributions made to its shareholders. In Maggard v. […]
Michigan & Wisconsin And Sales Tax – SaaS, Software & OtherThis month, we continue our “compare and contrast” blog series with a couple of Great Lakes states – Michigan and Wisconsin – specifically their treatment of technology items for sales tax purposes. […]
California Senate Passes Bill Allowing Undocumented Immigrants To Get Homebuying Loans (23-11 Vote)According to an article in KTLA News 5… On Tuesday, California lawmakers in the State Senate approved a bill allowing undocumented immigrants to qualify for first-time homebuying loans. The […]
How To Open A U.S. LLC For Non-US ResidentsForming a Limited Liability Company (LLC) in the U.S. is a popular choice for non-U.S. residents seeking a flexible and protective business structure. This guide provides a concise, step-by-step […]
New California State Exercising Right To Become The 51st StateWhy New California New California is a new state in development exercising it’s Constitutional Right to form from the State of California. The process to form New California is authorized and […]
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