HIGHLIGHTS:
Tax Ticklers
Income Sprinkling: Where Are We Now?
Input Tax Credits: Checking Up On Suppliers
Marijuana: A Growing Industry
Loans To A Relative’s Business: What Happens When It Goes Bad?
Business Failure: Personal Liability for Corporate Tax Debt
Commission Paid To A Corporation: Any Issues?
Highly Motivated Professionals
Congratulations to our successful CFE writers
Jacob Perry, Mary Jane Miller and Blake Gough
The future is bright for this talented group of professionals on their way to becoming Chartered Professional Accountants!
Jacob, Mary Jane and Blake all started with GSE at our St. Thomas office through their university co-op placements.
Blake joined the firm full time in 2016 and Jacob and Mary Jane in January 2017.
All of us at Graham Scott Enns are very proud of the dedication they have displayed in their preparation for the CFE and join them in celebrating the successful passing through the examination process.
On December 13, 2017 the government released the new proposed rules on income sprinkling to be effective January 1, 2018. Please see the link below for more details.
Taxpayers with corporations should seek professional advice before paying any dividends on or after January 1, 2018.
Congratulations Megan!
Megan joined GSE in 2008 as a manager in the Aylmer office and will become an associate in 2018. She enjoys providing assurance, accounting and taxation services to clients in a wide range of sectors, including owner-managed small business, manufacturing and not-for-profit. Megan strives to provide solid client service and believes in building strong relationships with clients. Megan is an active member and supporter of both the Aylmer Christian Reformed Church and Immanuel Christian School (Aylmer).
Please review the 2017 Personal Income Tax Return checklist and 2017 Year End Tax Planning document links below.
Please see the attached summary regarding changes to the Ontario corporate tax rates and other items announced by Finance Minister Charles Sousa.
The attached document summarizes government announcements regarding changes to the changes to the Income Tax Act proposed July 18, 2017.
Highlights:
Tax Ticklers
Business Loss or Personal Venture: Can I Deduct Losses Against Other Income?
Guaranteed Income Supplement: Change in an Individual’s Circumstance
Charity Filing and Compliance Obligations: The CRA Has Checklists to Help
Dying Without A Will: Who Can Manage the Deceased’s Tax Affairs?
Operating A Business In The U.S.: The IRS is Targeting Smaller Foreign Entities
Non-Compliant GST/HST Registrants: Impact on Tax Refunds or Credits
Support of Refugees: Tax and Filing Requirements
Underground Economy: Contractors, Online Sales, Farmers Markets
I have prepared a summary outlining what income sprinkling is and how it impacts the taxation of individuals in Canada and in particular Ontario. I am hopeful that this documents will be useful to you in understanding the issues and help separate fact from fiction that is currently being reported in the media.
We have been provided with the following letter template that may be of assistance to you if you are interested in providing your thoughts to your Member of Parliament regarding the proposed changes to the Income Tax Act released on July 18, 2017.
2017_Aug_Proposed_New_Tax-Rules_Letter_to_Member_of_Parliament
The proposed changes will impact the ability to share income of a family business and significantly increase the personal income tax rate on income from a private corporation. The ability to transition a business among families in a tax efficient manner including impacting the ability to claim the lifetime capital gains exemption is also impacted.
Further details of the changes can be found in our previous blog entry;
2018 – Changes to income sprinkling and other rules – July 31, 2017
or in the Tax Tips & Traps Third Quarter – Issue 119;
