Individuals – Tax information newsletter
1. Having a baby? Learn what tax changes to expect
If you have a new baby or a baby on the way, there are many benefits and credits you may be eligible to receive, and tax changes to consider.
2. How to manage the taxes of someone who has died
The Canada Revenue Agency (CRA) knows that dealing with the death of a loved one is difficult. With this in mind, here are a few things to consider when handling someone's taxes after they have passed away.
3. Students save with "extra credits" this term!
The CRA is helping you keep more money in your pocket with tax credits, deductions, and benefits for you when you do your taxes. Even if you have little or no income, you should still file your income tax and benefit return to claim tax credits and get benefits and credits.
4. Buying or selling a home? What you should know
If you bought your home in 2016 or plan to buy a home, the CRA has information that may help you.
Video: Beware of scammers posing as CRA employees
This is a video which shows how taxpayers can spot a scam, and how to react.
What's new for 2016
We list the service enhancements and major changes below, including announced income tax changes that were not law. If they become law as proposed, they will be effective for 2016 or as of the dates given.
MyBenefits CRA – This is a new mobile application that lets you securely view your benefit information. For more information see Mobile apps.
Manage online mail – View your benefit notices online instead of waiting for a paper version to come by mail. For more information see My Account for individuals .
Individuals and families
Canada child benefit (CCB) – As of July 2016, the CCB has replaced the Canada child tax benefit (CCTB), the national child benefit supplement (NCBS), and the universal child care benefit (UCCB). For more information see Canada child benefit.
Northern residents deductions – The basic and additional residency amounts used to calculate the northern residency deduction have both increased to $11 per day. See Form T2222, Northern Residents Deductions. For more information see line 255.
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 more information see line 370.
Home accessibility expenses – You can claim a maximum of $10,000 for eligible expenses you incurred for work done or goods acquired for an eligible dwelling. For more information see line 398.
Family tax cut – The family tax cut has been eliminated for 2016 and later years.
Children’s fitness tax credit – The maximum eligible fees per child (excluding the supplement for children with disabilities) has been reduced to $500. Both will be eliminated for 2017 and later tax years. For more information see lines 458 and 459.
Eligible educator school supply tax credit – If you were an eligible educator, you can claim up to $1,000 for eligible teaching supplies expenses. For more information see lines 468 and 469.
Interest and investments
Tax-free savings account (TFSA) – The amount that you can contribute to your TFSA every year has been reduced to $5,500.
Investment tax credit – Eligibility for the mineral exploration tax credit has been extended for flow-through share agreements entered into before April 2017. For more information see line 412 .
Labour-sponsored funds tax credit – The tax credit for the purchase of shares of provincially or territorially registered labour-sponsored venture capital corporations has been restored to 15% for 2016 and later tax years. The tax credit for the purchase of shares of federally registered labour-sponsored venture capital corporations has decreased to 5% and will be eliminated for 2017 and later tax years. For more information see lines 413, 414, 411, and 419.
Tax on taxable income – The tax rates and income levels have changed. See Schedule 1, Federal Tax. As a result of this change the donations and gifts tax credit calculation has changed. For more information see Schedule 9, Donations and Gifts.
Split income of a child under 18 – The tax rate has increased to 33%. For more information see line 232.
Sale of principal residence – The sale of a principal residence must now be reported, along with any principal residence designation, on Schedule 3. See Schedule 3, Capital Gains (or Losses) in 2016. Under proposed changes, the CRA will be able to accept a late designation in certain circumstances, but a penalty may apply. Go to Reporting the sale of your principal residence for individuals (other than trusts) and select question 7.
Reassessment period - Under proposed legislation, for tax years that end after October 2, 2016, the CRA may at any time reassess your income tax return if you fail to report a sale or other disposition of real estate. See the Guide T4037, Capital Gains.
Corporate Tax Returns
For corporate income tax returns the filing requires the production of financial statements based on information that you will be required to provide to us so we will start by providing a detailed checklist outlining all of the documents that you will need to submit to us. Since every situation is different so it not possible to provide a one size fits all service or price. We care about getting your filings accurate so for corporate tax returns please contact us to discuss your individual situation.
Multiple Years Corporate Tax Returns
Do you have multiple years of corporate income tax returns that need to be filed? Is the government sending you Demand to File letters? Do you require only the filing of blank tax returns for a corporation that does not have any activity? We have the software, experience and procedures to help you through any kind of situation you find yourself in. It is important to get your past due tax returns filed and we assist you by preparing them for you. Please contact us to discuss your individual situation. Nothing is too complicated for us to sort out.
Small Business Advisory Services
As a small business owner, you may encounter an unusual situation that requires the advice and assistance of a small business tax professional. Whether you have reached a personal milestone, are planning an expansion of your small business, or have received a call from the Canada Revenue Agency, we use our experience and knowledge to implement a strategy. What may be an unusual situation for you is day-to-day for us and we can provide the advisory service that you need.
At Billah & Associates Corporation we provide small business advisory services as well as personal advisory services including:
- Incorporations and sole-proprietor business registration and start-up advice;
- Small business start-up advice;
- Advising on matters related to other taxes – HST, GST, Employer Health Tax,
- payroll taxes and any other government related remittance;.
- Scientific Research and Experimental Development Claims SR & ED/ SRED;
- Preparation of Canadian tax returns for corporations and individuals.
At Billah & Associates Inc. Professional Corporation we like to keep our clients informed about changes occurring in all aspects of their business and personal affairs. We attempt keep our client’s informed in regards to changing government policies. Our professionals are available and involved, drawing upon our group understanding and growing experience to solve problems and offer advice far beyond the range of the conventional accounting firms
Financial Statement Preparation
What makes us different?
At Billah & Associates Inc. Professional Corporation we can give you the competitive edge to succeed in today’s challenging business environment. We take the time to create a partnership with you and your organization, understand your needs and environment. Together we can help each other succeed in this extremely competitive economy. At BILLAH & ASSOCIATES Inc. Professional Corporation we are not only your accountants but we are a valuable business partner in your organization and personal growth. We are there to ensure your success and create strategies and solutions that work. We communicate with our clients so that when our clients have to make immediate decisions they know we are there ready to offer help.
As a key player in your organization Billah & Associates Inc. Professional Corporation will offer you the expertise, professionalism and dedication needed to support organizational and personal success in today’s complex and competitive marketplace.
Accounting and financial statement preparation services offered by our firm include:
- General business consultation
- Notice to Reader engagements
- Compilation engagements
The future of your business depends in part on how well you understand and respond to the fiscal performance of your business. At Billah & Associates Inc. Professional Corporation, we provide you with timely and accurate accounting information in order to assist you in planning, managing and evaluating your operation.
Proper accounting strategies in every kind of business entity are more important than ever to meet the challenges of a rapidly changing world. Our professionals have the business confidence and critical expertise needed to help you gain the financial information you require in making vital choices about your personal and business affairs. At Billah & Associates Inc. Professional Corporation we strongly believe that by working together with you and offering our professional advice we can assist you in attaining the profitable results today and in years to come.
Please contact us today for a free initial consultation to discuss your unique situation.
T (647) 241-5126
Personal Tax Returns
For personal income tax returns we will compile your return based on the information received and then contact you by phone to discuss the results and to ask or answer any additional questions. Every return is prepared by a staff accountant and then each return is professionally reviewed in order to make sure that all claims are being made and the optimal returns are being generated. Once the results are finalized we will have you come back in to sign off and then each return is E-Filed (electronically sent) to the government.
Do you have multiple years of personal income tax returns that are unfiled?
Are you missing the records and forms necessary to file your tax returns?
We have the software, experience and procedures to help you in reconstructing the tax records necessary to file your back tax returns. Even when you do not have all of your important slips from current or previous years we can explain how to get them sent to you again. It is important to get your past due tax returns filed and we can prepare them for you. Just email us if you need us to help get your historical documents resent to you. Please contact us for assistance with you particular situation.
Should You Incorporate Your Business?
If you own a business, you may have wondered if you should incorporate. Historically the income tax system in Canada has benefited incorporated Canadian small businesses. Although the income and deduction calculations are almost identical to an unincorporated business, the major differences are in the corporate taxation structure and tax planning opportunities. When developing the tax plan for your business, you and your advisor should look for opportunities in the following areas:
- Income splitting with family members;
- Tax deferral to the future;
- Estate planning for you and your family;
- Utilization of the capital gains exemption; and
- Planning your retirement, including disposing of your business.
Since personal and corporate tax as well as family law issues can make this issue complex, please contact our office to discuss your situation.
Director & Personal Liability
In a Tax Alert titled “Abuse of Source Deductions and GST/HST Amounts Held in Trust” CRA warned that businesses must hold source deductions and GST/HST amounts in trust for the government. Penalties and interest and possibly personal liability for the directors will be the result if this is not done.
Federal legislation allows CRA to collect unpaid amounts through garnishments, assessments of the directors, seizure and sale of the assets of the debtor corporation, an assessed director or a sole proprietor, and any other means of recovery.
Taxpayers who have not complied with this requirement may make a voluntary disclosure to CRA. The taxpayer will not be penalized or prosecuted if valid disclosures are made before CRA begins any compliance action against the taxpayer. Taxpayers may only be required to pay the in trust amounts owing plus interest.
CRA “My Business Account”
The Canada Revenue Agency is constantly improving its online resources for taxpayers. You can view and print Notices of Assessment, check account balances and much more. For business owners, these resources can be very helpful. You can access them through the “My Business Account” portal. If you haven’t used My Business Account, you’ll have to set up your access. To do this, go to https://www.cra-arc.gc.ca/mybusinessaccount/ and register. Following registration, the CRA will mail you a code to use the first time you log in. The CRA also offers access to your personal tax account through the “My Account” portal. The registration process is similar to My Business Account. Just go to https://www.cra-arc.gc.ca/myaccount/ and follow the prompts.
CRA “My Payment” Account
Have you ever made a tax payment to the wrong CRA account or assigned it to the wrong year? It happens more often than you may expect. As a business owner, you very likely have multiple “program accounts” with the CRA. Program accounts are the individual accounts for GST/HST, payroll or corporate tax. If you’ve ever attempted to make payments to these accounts through online banking, you’ve undoubtedly had some apprehension about whether you have selected the correct payee. One solution is to use the CRA’s “My Payment” website. Note: you must bank with BMO, Scotiabank, RBC, TD, Envision Financial or Libro Credit Union in order to use this service. The CRA plans to add additional financial institutions to this list in the future. My Payment allows you to select the program account and the payment type (payment on filing, instalment etc.) to which you are making a payment. Once you’ve made your selections, you select your bank and log in to complete the payment. My Payment is free of charge (aside from the normal online banking charges) and it eliminates the risk of applying payments incorrectly. To use My Payment, go to: https://www.cra-arc.gc.ca/esrvc-srvce/tx/mypymnt/menu-eng.html
CRA Phone Numbers
- General Enquiries for Personal Tax: 1-800-959-8281
- Business Enquiries (including GST/HST and Payroll) 1-800-959-5525
Helpful tips and tricks
- How to obtain a Canadian business number External Link Icon
- Payroll deductions calculator (note calculations through this may not be 100% accurate) External Link Icon
- Direct payment for CRA with filings External Link Icon
- WSIB Ontario External Link Icon
- Self employed or contractor? External Link Icon
- Corporations Canada External Link Icon
- ROE Web External Link Icon
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