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Electronic Notices of Assessment (NOA) Delivery
Effective on January 1, 2023, the Canada Revenue Agency (CRA) will start the process on providing electronic notices of assessment or reassessment for certain taxpayers. For taxpayers who hire a tax preparer to file their tax returns through EFILE, they will...
Paid-Up Capital
Paid-Up Capital (PUC) is basically the amount of consideration received by the corporation on the issue of the shares and may be further adjusted under subsection 89(1) of the Income Tax Act (ITA). For example, an initial investor/shareholder subscribes 100...
Venturing from an Employee to a Business Owner
If you are considering venturing from an employee to a business owner then you should consider the structure of your business. The choice of sole proprietorship or corporation can impact the taxes you will pay, the personal liabilities you will face, or the...
Profit First, Financial Statements, Financial Forecasts
Profit first is an excellent tool for cash flow management. It does not replace the accounting and financial statements. Financial statements function as a roadmap to help business owners to steer their businesses in the right direction. Financial...
Tax Treatment of Employee Stock Options
The government proposed changes to limit the preferential tax treatment of certain employee stock options by eliminating an offsetting deduction equal to one-half of the taxable benefit. Before Taxation Year 2020 Canadian Controlled Private...
Personal Services Business (PSB)
A PSB is defined in subsection 125(7) of the Income Tax Act (ITA): Individual performs services on behalf of the Corporation Individual is an incorporated employee or any person related to the incorporated employee is a specified shareholder of the Corporation...
Acquisition of Control (AOC)
Acquisition of control, S 256(5.1) of ITA, or change of control is basically the sale of a business through the sale or redemption of shares will result in one person controls the corporation. Assuming Serviceco Ltd is a Canadian Controlled Private Corporation (CCPC)...
Tax Integration in Alberta
Updated May 2022 Tax integration is basically income earned by a corporation and distributed to shareholders as dividends is taxed approximately equal to income earned directly. Example for Active Business Income (ABI) of a Canadian Controlled...