Tax Expertise & Audit Efficiency

Experienced tax advisors specializing in income tax planning
and seamless financial strategy for the 2024-2025 season.
Trust us to help navigate complex tax codes and optimize your financial goals.

Your trusted partner for Audit & Accounting services

Mackisen provides top-notch financial services that save you time and resources while meeting industry regulations. Our mission is to simplify your finances, increase efficiency, and maintain the highest standards of excellence.

We make taxes simple for our clients

With the help of our Chartered Professional Accountant and Auditor, we double-check every tax return, with expertise in rental income, employment expenses, foreign income, and corporation tax.

 

Our services provide quality and reliability all year round, ensuring you get the maximum refund available.

Our Services

We make every effort to become an indispensable resource for your business. We are passionate about using our financial expertise and business sense to help drive your business forward.

We are committed to delivering unparalleled customer experiences.

Since 1991, Mackisen has provided tax, accounting and bookkeeping services to thousands of customers, to drive their business forward and improve their bottom line. Our success is directly linked to the success of our clients.

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  1. Employment and self-employment income. Report various sources of income, encompassing both employment and self-employment, such as commissions, foreign employment income, medical premium benefits, veterans’ benefits, Wage Earner Protection Program proceeds, taxable benefits related to group term life insurance plan premiums, amounts received from supplementary unemployment benefit plans (including guaranteed annual wage plans), royalties, specific GST/HST and Quebec sales tax (QST) rebates, income-maintenance insurance plans (including wage-loss replacement plans), clergy’s housing allowance, or eligible utilities. Additionally, include any employment income not documented on a T4 slip.
  2. Pension and Savings Plans Income: Include income from pension and savings plans, such as Old Age Security, CPP or QPP benefits, and pensions received from other countries.
  3. Investment Income: Disclose income generated through investments, encompassing interest, dividends, and capital gains.
  4. Benefit Income: Report income derived from benefits, including Employment Insurance (EI) and other benefit programs, workers’ compensation benefits, social assistance payments, or Universal Child Care Benefit (UCCB)
  5. All Types of Income: Conduct a comprehensive review of all income types applicable to your tax return. This includes referring to the guide for T1 and TP1, covering other pensions and superannuation. This involves payments from annuities, Pooled Registered Pension Plans (PRPP), and Registered Retirement Income Funds (RRIF), including life income funds. Also, consider pensions received from foreign countries.
  6. Elected Split-Pension Amount and UCCB
  7. Employment Insurance and Other Benefits 
  8. Taxable Amount of Dividends from Taxable Canadian Corporations, Interest, and Other Investment Income
  9. Net Partnership Income (Limited or Non-active Partners Only)
  10.  Registered Disability Savings Plan Income 
  11. Rental Income, Support Payments Received 
  12. Registered Retirement Savings Plan (RRSP) Income 
  13. Lump-sum Payments, Retiring Allowance 
  14. Death Benefits (Other Than CPP or QPP Death Benefits)
  15. Taxable Capital Gains: Calculating and Reporting Your Capital Gains and Losses 
  16. Capital Losses and Deductions 
  17. Shares, Funds, and Other Units 
  18. Capital Gains (or Losses) from Information Slips 
  19. Principal Residence and Other Real Estate 
  20. Transfers of Capital Property 
  21. Capital Gains and Losses from a Business or Partnership 
  22. Gifts of Shares, Stock Options, and Other Capital Property

At Mackisen, we offer a variety of services including accounting, tax audits, financial statement audits, tax filing, and consulting.   Also, we provide additional services through our network of experts such as business loans, mortgages, immigration, litigation, marketing, mergers, acquisitions, real estate, and so on.

For employees, the tax filing and payment deadline is April 30th. If you owe taxes, ensure your return is filed before April 30th or postmarked before midnight on the due date.

If you or your spouse/common-law partner operated a business in 2009, your return is not due until June 15th. However, the taxes payable are still due by April 30th. If the return is not completed by April 30th, you can estimate the taxes owed and make a payment based on the estimate. If you owe taxes, ensure the tax return is filed before midnight on June 15th or postmarked before midnight.

Getting started with Mackisen is simple. You can reach out to us through our contact page or by calling our office. Our team will guide you through the initial steps, understand your needs, and tailor a plan to help you achieve your financial goals.

 

  1. Employment and self-employment income. Report various sources of income, encompassing both employment and self-employment, such as commissions, foreign employment income, medical premium benefits, veterans’ benefits, Wage Earner Protection Program proceeds, taxable benefits related to group term life insurance plan premiums, amounts received from supplementary unemployment benefit plans (including guaranteed annual wage plans), royalties, specific GST/HST and Quebec sales tax (QST) rebates, income-maintenance insurance plans (including wage-loss replacement plans), clergy’s housing allowance, or eligible utilities. Additionally, include any employment income not documented on a T4 slip.
  2. Pension and Savings Plans Income: Include income from pension and savings plans, such as Old Age Security, CPP or QPP benefits, and pensions received from other countries.
  3. Investment Income: Disclose income generated through investments, encompassing interest, dividends, and capital gains.
  4. Benefit Income: Report income derived from benefits, including Employment Insurance (EI) and other benefit programs, workers’ compensation benefits, social assistance payments, or Universal Child Care Benefit (UCCB)
  5. All Types of Income: Conduct a comprehensive review of all income types applicable to your tax return. This includes referring to the guide for T1 and TP1, covering other pensions and superannuation. This involves payments from annuities, Pooled Registered Pension Plans (PRPP), and Registered Retirement Income Funds (RRIF), including life income funds. Also, consider pensions received from foreign countries.
  6. Elected Split-Pension Amount and UCCB
  7. Employment Insurance and Other Benefits 
  8. Taxable Amount of Dividends from Taxable Canadian Corporations, Interest, and Other Investment Income
  9. Net Partnership Income (Limited or Non-active Partners Only)
  10.  Registered Disability Savings Plan Income 
  11. Rental Income, Support Payments Received 
  12. Registered Retirement Savings Plan (RRSP) Income 
  13. Lump-sum Payments, Retiring Allowance 
  14. Death Benefits (Other Than CPP or QPP Death Benefits)
  15. Taxable Capital Gains: Calculating and Reporting Your Capital Gains and Losses 
  16. Capital Losses and Deductions 
  17. Shares, Funds, and Other Units 
  18. Capital Gains (or Losses) from Information Slips 
  19. Principal Residence and Other Real Estate 
  20. Transfers of Capital Property 
  21. Capital Gains and Losses from a Business or Partnership 
  22. Gifts of Shares, Stock Options, and Other Capital Property

At Mackisen, we offer a variety of services including accounting, tax audits, financial statement audits, tax filing, and consulting.   Also, we provide additional services through our network of experts such as business loans, mortgages, immigration, litigation, marketing, mergers, acquisitions, real estate, and so on.

Mackisen distinguishes itself through specialized expertise, a personalized approach, a proven track record in various industries, and a commitment to client-centric values. We focus on tailoring financial solutions to meet your unique needs.

For someone who is a senior or an employee, you will have to file and pay your taxes by April 30th. If you owe taxes, make sure your return is filed before April 30th, and pay your taxes by April 30th to avoid late filing penalties, late payment fees, and interest. It’s best to have your taxes postmarked before midnight on the due date. If your tax return was filed electronically, and it was refused due to an error, then you may have an additional 5 days to correct and file.

Our services are competitive and the cost will vary depending on what services are requested. Our rates will vary based on the level of expertise and the volume and nature of transactions. We allocate resources to give clients the best rate. Ask us what will be the cost for your service before we start working on your file. This way we can maintain good understanding and bring long term relationship.

Our accounting firm provides comprehensive support for immigrants, including meticulous tax preparations, financial planning, and other services to ensure compliance and financial success during the immigration journey.

Our experts guide you through the grant application process, offering support in preparing documentation and ensuring compliance with requirements. We aim to make the application process seamless for your organization.

Our standout customer service prioritizes consistent communication and genuine care for your business’s success. Our experienced accountants go beyond traditional services, offering proactive business advice and strategic tax planning to maximize your profits.

While an annual accounting solution might suit some based on cost, our monthly accounting services provide ongoing support and timely insights. This proactive approach allows us to offer valuable services like tax planning, ensuring you make informed decisions and lower your tax liability before year-end.

Explore why working with a monthly accountant eliminates the need for an annual accountant. Note that, while we handle personal taxes for business clients, some still opt for an annual accountant for personal tax needs. We provide flexible solutions to cater to your unique financial requirements.

For incorporated businesses, filing a corporate income tax return is required within six months from the year-end date. However, corporate taxes are due either sixty or ninety days from the year-end date, depending on the nature of the income.

June 15, 2023, is the deadline for self-employed individuals to file their 2022 income tax and benefit return. Although your tax filing deadline is June 15, 2023, your payment is due on April 30. We encourage you to pay by April 30th to avoid additional interest charges on your balance owed. June 15, 2023, is the deadline to file your taxes if you or your spouse or common-law partner are self-employed.

 

If meeting your payment obligations is challenging, seeking assistance from a bankruptcy office may provide tailored solutions. Reach out to the CRA to initiate a conversation about your circumstances, understand the repercussions of non-payment, and explore alternatives if meeting your debt obligation is currently unfeasible. Options include deferring repayment to a future date when it aligns with your financial capacity.  Initiate or modify a payment arrangement to better align with your financial capabilities. Engage in discussions about alternative avenues to address and resolve your outstanding debt.

You may find it necessary to remit installment payments if the CRA mandates you to cover anticipated tax liabilities for the upcoming tax year. These tax instalments involve making periodic payments throughout the year, serving as an advance contribution toward the total tax amount typically settled in a lump sum on April 30 of the subsequent year. Similar to an employer deducting taxes from each pay period, you fulfill these instalments while earning income. It becomes mandatory to remit tax instalments for the next tax year if your net tax owed exceeds $3,000 (or $1,800 for Quebec) in 2023, and either 2022 or 2021. Failure to meet these obligations may result in the imposition of interest charges and potential penalties for insufficient or missed payments.

If you receive a letter from the government demanding the filing of your taxes, it’s important to comply promptly. Section 150(2) of the Income Tax Act empowers the CRA to require the filing of a return for a designated tax year. Whether you owe taxes or are entitled to a refund, you must file the return as instructed. Typically, the CRA provides a 30-day window for compliance. Failure to file the return after receiving such a demand is considered a criminal offense. Filing your return annually is a proactive measure to avoid government scrutiny, audits, or potential criminal investigations.

Penalties and Interest for Late Filing:

If you fail to file your tax return on time and you owe tax, you may incur the following penalties and interest:

Penalty: 5% of the outstanding balance, plus an additional 1% for each month the return is late, up to a maximum of 12 months. This totals to a maximum penalty of 17%. If you’ve been late in filing in any of the last three previous years, the penalty can be higher. To avoid stress and potential penalties, it’s recommended to contact Tax Doctors Canada as soon as possible.

We typically require financial statements, income records, expense details, and other relevant documentation. Our team communicates clearly about the information needed, making the tax preparation process efficient and accurate.

For Personal TAX the information that are needed are:  Personal Information, income slips,  employment (T4, RL-1), retirement, saving and investments, retirement and Social Benefits, and Employment Insurance.

  1.  Family, Childcare, and Caregivers Deductions 
  2. Education Deductions 
  3. Disability Deductions 
  4. Pension Amount Deductions 
  5. RRSP Deductions 
  6. Employment Expenses Deductions 
  7. Provincial and Territorial Deductions 
  8. RPP (Registered Pension Plan) Deductions 
  9. Split Pension Deduction 
  10. Annual Union, Professional, or Like Dues Deductions

It is important to keep complete records of the money you make and spend. Your records must give enough detail to determine the tax you owe and support any deductions or credits you are claiming. You need to keep all supporting documents as part of your records.

Sometimes, CRA and ARQ to make sure that income, deductions, and credits are properly reported. If your file is reviewed, having your receipts and records on hand will make it easier for you to support your claims.

You have the flexibility to choose the frequency of updates – whether monthly, quarterly, or annually. However, for optimal benefits, regular updates are recommended. Many of our clients find monthly updates preferable, and we highly recommend this option to ensure you receive timely and accurate information.

Certainly! Even if you haven’t had a bookkeeper before and your documents have piled up, we can still help. Our team will take care of organizing and summarizing all your receipts, invoices, bank statements, credit card statements, and any other documents that may have accumulated. No need for pre-sorting or organizing – we’ve got it covered!

Being self-employed means working for yourself. If you operate as a freelancer, a home-based business owner, consultant, or engage in side gigs, you likely have self-employment income.

In tax terms, as per the CRA (Canada Revenue Agency), you are considered self-employed if you function as an independent contractor, operate as a sole proprietor, or participate as a partner in a business partnership, providing a service or product with an expectation of profit. There are generally three classifications for self-employment:

  1. Independent contractor: Providing a specific service for someone else on a contractual basis.
  2. Sole proprietor: Running your business independently, and your business is unincorporated.
  3. Partnership: Operating your self-employed business with two or more parties involved.

Common Returns to File:

If incorporated, businesses need to file a corporate income tax return within six months from the year-end date. Corporate taxes are due within sixty or ninety days from the year-end date, depending on the nature of the income.

Other returns include:

  1. • GST/HST for registered businesses with monthly, quarterly, or annual filing deadlines. 
  2. Payroll remittances, varying based on volume, with a typical monthly frequency for SMEs. T4 slips must be issued based on the calendar year by the end of February of the following year. 
  3. Workers Compensation Board premiums, typically due monthly, with an annual reconciliation. 
  4. Employer Health Tax premiums for businesses with a payroll exceeding $450,000.

You may need to file a tax return in various situations:

  1. If you owe taxes.
  2. If you receive a request to file from the revenue agency.
  3. If you wish to split your pension with your spouse or common-law partner.
  4. If you dispose of capital property.
  5. If you have to repay Old Age Security or Employment Insurance benefits.
  6. If you need to contribute to the Canada Pension Plan.
  7. If you have not repaid your withdrawal from your RRSP under the Home Buyers’ Plan or Life Long Learning Plan.

For businesses operating in Canada, adhering to the requisite filing requirements is vital to maintaining compliance with tax regulations. This overview outlines the key obligations businesses must fulfill regarding corporate tax returns, Goods and Services Tax (GST), Quebec Sales Tax (QST), and source deductions for employees.

  1. Corporate Tax Return: Every business, whether incorporated or not, is obligated to file an annual corporate tax return. The filing deadline is typically within six months from the year-end date. Incorporated businesses must adhere to specific deadlines, with variations based on the nature of the income.

  2. Goods and Services Tax (GST) and Quebec Sales Tax (QST): Businesses with annual revenues exceeding the specified threshold are required to register for GST and possibly QST. Once registered, they must remit these taxes to the Canada Revenue Agency (CRA). The frequency of remittance—monthly, quarterly, or annually—depends on the business’s sales volume.

  3. Source Deductions for Employees: If a business has employees, it is responsible for withholding and remitting source deductions, including income tax, Canada Pension Plan (CPP), and Employment Insurance (EI). Businesses must accurately report these deductions to the CRA and remit the withheld amounts on a regular basis.

  4. Quebec Tax Return (for Businesses Registered in Quebec): For businesses operating in Quebec, an additional requirement is filing the Quebec tax return. This return is separate from the federal corporate tax return and must be submitted to Revenu Québec.

The CRA can see the contents of your bank account. The CRA regularly puts accounts with seemingly unscrupulous activity under their microscope. They are on the lookout for penalty-worthy offenses, such as over-contributing to a TFSA or undeclared income.

 

Our team at Mackisen specializes in R&D finance and can guide you through the process of accessing subsidies. Eligibility criteria vary, but we work closely with you to determine your qualification and optimize benefits.

Yes, if your business operates as a sole proprietorship or partnership, you utilize the same income tax return for both personal and business taxes, filing through the T1 income tax form. On the other hand, if your business is structured as a corporation, you are required to file a separate T2 corporate income tax return for the business.

 
 
 

A distinctive feature of a corporation, setting it apart from other business types, is its status as an independent legal entity, distinct from its owners, controllers, and managers. In the eyes of corporation and tax laws, a corporation is considered a legal “person” capable of engaging in contracts, incurring debts, and fulfilling tax obligations independently of its owners. This separate legal existence entails significant characteristics, including the corporation’s continuity even if ownership (shareholders) changes or individuals pass away. Additionally, owners (shareholders) enjoy limited liability, meaning they are not personally accountable for the corporation’s debts.

Corporations are composed of shareholders, directors, and officers. Shareholders hold stock, represented by individual shares, in the corporation. The board of directors, or directors, supervises the corporation, making critical decisions for the business. Finally, officers manage the corporation’s day-to-day operations and typically report to the board.

For a more in-depth understanding of corporate operations, you can explore our article on comprehending corporate structure.

 
 
 

The concept of “limited liability” for a business owner implies that they bear no personal responsibility for the corporation’s debts and commitments. Simply put, if the corporation faces legal action, only the assets of the business are susceptible to risk, and the personal assets of the owners (shareholders), such as their homes or vehicles, remain protected. To sustain this limited liability privilege, the corporation’s owners must adhere to specific corporate formalities, fulfill paperwork obligations, and adequately finance (“capitalize”) their business.

Historically associated with corporations, limited liability serves as a primary motivator for individuals contemplating the process of incorporation. However, alternative business structures, like LLCs, now extend this limited personal liability benefit to business owners, while sole proprietorships and general partnerships do not.

Creating a corporation involves a series of legal steps to establish its existence. The initial step is to file a concise document known as “articles of incorporation” with the state’s corporations division. The terminology for this document may vary by state, referred to as a “certificate of incorporation,” “certificate of formation,” or “charter.” The filing incurs a fee ranging from approximately $100 to $800, contingent on state regulations. The articles of incorporation contain essential information, including:

  • Corporation name
  • Corporate address
  • Details of the registered agent (the designated person for public contact regarding the corporation)
  • In certain states, the names of the corporation’s directors

Simultaneously, the creation of “corporate bylaws” is imperative, offering an extensive document delineating the operational rules, decision-making procedures, and voting rights within the corporation.

Subsequently, an inaugural board of directors meeting is convened to address formalities and make pivotal decisions. Additionally, shares of stock must be issued to the initial owners (shareholders) before commencing business operations.

In contrast to sole proprietors and owners of partnerships and LLCs, the taxation structure for a corporation’s owners is distinctive. Owners of a corporation are not subject to individual taxes on the entirety of business profits. Instead, they are taxed solely on profits distributed to them as salaries, bonuses, or dividends. Dividends represent portions of profits that some large corporations pay to shareholders as a return on their investment in the company. Meanwhile, the corporation itself incurs taxes, subject to specific corporate tax rates, on any retained profits left within the company from one fiscal year to the next.

It’s important to note that this taxation model doesn’t apply to S corporations, which opt for a taxation approach akin to partnerships. Regular corporations, as outlined above, are referred to as “C corporations.” S corporations, much like sole proprietorships, partnerships, and LLCs, are classified as pass-through tax entities. If a corporation elects S corporation status, all profits and losses of the corporation will “pass through” to the owners, who must report them on their individual income tax returns.

Yes, you should be mindful of securities laws when issuing stock in your corporation. Securities laws are designed to regulate the issuance and trading of securities, including stocks. The rules vary by jurisdiction, and it’s crucial to comply with them to avoid legal issues.

When issuing stock, consider the following key points:

  1. Registration Requirements: In many jurisdictions, the issuance of securities must be registered with the relevant regulatory authorities unless an exemption is available. Registration involves providing detailed information about the company and its securities.

  2. Exemptions: Some jurisdictions provide exemptions from registration for certain types of offerings, especially those involving a limited number of investors or sophisticated investors. Familiarize yourself with the exemptions applicable in your jurisdiction.

  3. Disclosure Requirements: Even if registration is not required, securities laws often mandate disclosure to investors. This may include providing them with information about the company’s financial condition, business operations, and the risks associated with the investment.

  4. Anti-Fraud Provisions: Securities laws typically include anti-fraud provisions that prohibit misleading statements or omissions of material facts in connection with the issuance of securities.

  5. Investor Qualifications: Some offerings are limited to “accredited investors” or individuals meeting specific financial criteria. Ensure that your offering complies with these investor qualification requirements.

  6. Consult Legal Professionals: Given the complexity of securities laws, it’s advisable to consult legal professionals experienced in securities regulation to guide you through the process and ensure compliance.

Failure to comply with securities laws can lead to severe consequences, including fines, rescission rights for investors, and legal liabilities. Therefore, it’s essential to seek legal advice and adhere to the applicable regulations when issuing stock in your corporation.

For employees, the tax filing and payment deadline is April 30th. If you owe taxes, ensure your return is filed before April 30th or postmarked before midnight on the due date.

If you or your spouse/common-law partner operated a business in 2009, your return is not due until June 15th. However, the taxes payable are still due by April 30th. If the return is not completed by April 30th, you can estimate the taxes owed and make a payment based on the estimate. If you owe taxes, ensure the tax return is filed before midnight on June 15th or postmarked before midnight.

Getting started with Mackisen is simple. You can reach out to us through our contact page or by calling our office. Our team will guide you through the initial steps, understand your needs, and tailor a plan to help you achieve your financial goals.

 

Mackisen prioritizes client confidentiality and data security. We employ industry-standard practices and robust security measures to safeguard your financial information and ensure compliance with privacy regulations.

We typically require financial statements, income records, expense details, and other relevant documentation. Our team communicates clearly about the information needed, making the tax preparation process efficient and accurate.

Absolutely. Mackisen excels in tax planning and compliance services for businesses. Our team ensures that your business meets all tax obligations while maximizing benefits through strategic planning.

Mackisen serves a diverse range of industries, including but not limited to technology, healthcare, renewable energy, automotive, aerospace, and biotechnology. Our team’s expertise spans various sectors to meet the specific needs of our clients.

The optimal method for filing your taxes is through a CPA Auditor, as they possess the highest level of education and can offer additional related services.

You should have received most of your slips and receipts by the end of February. However, you may not receive your T3 and T5013 slips until the end of March. Receipts for RRSP and PRPP contributions made in the first 60 days of the tax year may not be received until May.

Types of tax slips include

  • T4: Statement of Remuneration Paid
  • T4A: Statement of Pension, Retirement, Annuity, and Other Income
  • T4A(OAS): Statement of Old Age Security
  • T4A(P): Statement of Canada Pension Plan Benefits
  • T4E: Statement of Employment Insurance and Other Benefits
  • T4RIF: Statement of income from a Registered Retirement Income Fund
  • T4RSP: Statement of RRSP Income
  • T5: Statement of Investment Income – slip information for individuals
  • T5007: Statement of Benefits
  • T5008: Statement of Securities Transactions – slip information for individuals
  • T5013: Statement of Partnership income
  • T5018: Statement of Contract Payments
  • T3: Statement of Trust Income Allocations and Designations – slip information for individuals
  • T2202: Tuition Enrolment Certificate
  • T1204: Government Services Contract Payments
  • RC62: Universal Child Care Benefit statement
  • RC210: Working Income Tax Benefit Advance Payments Statement
  • RRSP contribution receipt – slip information for individuals
  • PRPP contribution receipt – slip information for individuals

If the tax return is electronically filed, the return usually takes between seven to fifteen days. If the return is mailed, it usually takes four to six weeks.

  1. Pay Online:

    • Online banking
    • Pre-authorized debit (PAD) payments
    • Debit card payments
    • Credit card, PayPal, Interac e-Transfer payments
    • Wire transfer and internationally issued credit card payments (option for non-residents)
  2. Pay in Person:

    • Visit our office to make a payment
  3. Pay by Mail:

    • Send a payment through traditional mail
  4. Confirm Your Payment:

    • Ensure your payment is successfully processed and confirmed.

They are due by the following dates (except for farmers and fishers who have one due date on December 31):

March 15,  June 15,  September 15,  December 15

If a tax assessment has been mailed to the taxpayer and full payment is not made immediately, the CRA can initiate collection actions. Failure to make a payment, contact the CRA for payment arrangements, or file an objection may lead to various collection methods. The CRA can garnish wages, withhold income tax refunds, seize bank accounts and other assets (such as a home or cottage), and register liens on property, among other measures.

Interest on a tax refund begins to accumulate on the later of the following three dates:

  1. The 31st day after you file your tax return.
  2. 31 days after the balance due date for the year, which could be May or July 15th if you are self-employed.
 

There’s no minimum income to file taxes in Canada. However, almost everyone get audited for not declaring enough income to cover their living expenses, investments or money in the bank.

  1. Amounts Exempt from Tax Under Section 87 of the Indian Act (Section 87 Tax Exemption). 
  2. Lottery Winnings of Any Amount, Except When Classified as Income from Employment, a Business or Property, or a Prize for Achievement • Most Gifts and Inheritances. 
  3. Amounts Paid by Canada or an Allied Country (Non-taxable in That Country) for Disability or Death of a War Veteran Due to War Service.
  4. GST/HST Credit and Canada Child Benefit (CCB) Payments, Including Those from Related Provincial and Territorial Programs 
  5. Family Allowance Payments and the Supplement for Handicapped Children Paid by the Province of Quebec 
  6. Compensation Received from a Province or Territory if You Were a Victim of a Criminal Act or a Motor Vehicle Accident 
  7. Most Amounts Received from a Life Insurance Policy Following Someone’s Death. 
  8. Most Types of Strike Pay Received from Your Union, Even if Performing Picketing Duties as a Membership Requirement 
  9. Most Amounts Received from a Tax-Free Savings Account (TFSA)

To effectively assist you in achieving your business objectives, we need access to your online accounts and source documents, which can be provided in either electronic or hard copy format. Essential documents include, but are not limited to:

  • Business bank and credit card statements
  • Sales systems (POS)
  • Accounting software
  • Inventory records
  • Accounts payable and receivable data

Certainly. Audit representation is part of your monthly accounting fee, and you will not incur additional charges for this service unless the audit pertains to a period when you were not our client.

At Mackisen, we provide agent-level support, directly engaging with the IRS agent in the case of income tax audits. The majority of these matters are typically resolved at the agent level, eliminating the need for involvement in tax court proceedings. Additionally, if we handle your monthly sales tax returns, we will also represent you in the event of a sales tax audit. Our goal is to provide comprehensive support throughout the audit process.

We recognize that being selected for a government audit can be a stressful situation. Rest assured, we will handle the response to any government inquiry and assist in preparing the necessary documents requested by the government. Your peace of mind is our priority during the audit process.

Cash is the lifeblood of your business operations, playing a crucial role in supporting growth. Insufficient cash can hinder your ability to cover essential expenses such as employee salaries, fund marketing and sales initiatives, acquire and retain customers, and carry out day-to-day activities like purchasing equipment and facilities. The cash flow of a business is a pivotal determinant of its potential for long-term success. Even a business with significant revenue can face failure if it struggles to generate sufficient cash.

As a self-employed person, you are required to disclose all income and expenses on your tax return. Whether your income is solely from self-employment or a mix of self-employment and regular employment, you can consolidate both sources into a single tax return.

The best defense against an audit is to file your tax return every year and on time. Why give the CRA a reason to examine your tax situation? Get it done! If you file a GST return, make sure the revenue on your business statement T2125 matches the revenue that is on the GST return

Incorporating comes with both benefits and disadvantages. One significant advantage is limited liability, wherein the shareholders’ risk is limited to the amount paid for their shares. The corporation operates as a separate legal entity, and the shareholders are not personally responsible for the company’s liabilities. For instance, if you invested $100 in shares, your potential loss is capped at $100.

Another benefit is tax deferral. Corporations may pay tax, under certain conditions, at a rate of around 16%, whereas individuals, at the highest tax bracket, face a rate of approximately 46%. When income remains within the corporation, it incurs a 16% tax on active business income, providing a deferral of about 30% (46 – 16). However, once the income is distributed as a salary, the deferral ends.

On the downside, incorporating can be costly. Legal fees for incorporating the business might range from $1,000 to $2,000, and additional expenses include accounting fees for preparing financial statements and corporate tax returns.

Another drawback is that losses stay within the corporation. In the initial years of business, you may experience losses. While these losses can be carried forward for twenty years or carried back three years, if the corporation doesn’t generate income, the losses expire. In contrast, as a sole proprietor, you could deduct these losses against other personal income, such as employment income.

As technology continues to revolutionize various aspects of our lives, the Canada Revenue Agency (CRA) is not exempt from leveraging these advancements for tax enforcement. In this digital age, the CRA employs sophisticated methods to scrutinize individuals and businesses, aiming to identify tax fraud and evasion. Here are four ways the CRA utilizes technology to keep tabs on taxpayers.

  1. Online Buying and Selling Habits/Social Media: Platforms like eBay and Kijiji provide convenient online marketplaces, but the CRA closely monitors users who might be generating income through these channels. Failure to report profits made from online sales could attract the CRA’s attention. Additionally, social media platforms like Facebook and Twitter are not exempt from scrutiny, with lavish posts potentially triggering further investigation.

  2. Bank Accounts: The CRA has the ability to access and examine the contents of bank accounts. Accounts displaying suspicious or unscrupulous activities, such as over-contributions to Tax-Free Savings Accounts (TFSA) or undisclosed income, may be subject to closer examination by the CRA.

  3. Computerization and AI: Artificial intelligence and computerization play a crucial role in the CRA’s efforts to identify potential audit candidates. Retailers, equipped with vast consumer information, can share data with the CRA, allowing the agency to flag individuals for audits based on purchasing patterns and other relevant data.

  4. Data Analysis and Net Worth Assessment: The CRA collects and analyzes vast amounts of data, creating “leads” for CRA agents to investigate further. This information serves as a basis for conducting a net worth assessment and estimating an individual’s income. Subsequently, taxpayers must defend themselves against these assessments, working with their accountants to challenge figures that seem inaccurate or inflated.

Generally, at our firm, we start filing on February 20

You may have to pay a federal and provincial or territorial penalty if you fail to report an amount of $500 or more for the following:

  • your 2022 tax return
  • your 2019, 2020, or 2021 tax return

The penalty is whichever amount is less:

  • 10% of the amount you failed to report (federal and provincial or territorial)
  • 50% of the difference between:
    • the understated tax or overstated credits of the amount that you failed to report
    • the tax withheld from the amount you failed to report

The CRA may grant you penalty relief if you voluntarily disclose amounts that you failed to report and/or credits that you overstated before the CRA contacts you or anyone who is related to you.

In contrast to partnerships and sole proprietorships, corporations offer limited personal liability for business debts. Limited liability ensures that creditors cannot pursue the owner’s personal assets to settle business debts. However, the process of establishing and managing a partnership or sole proprietorship is simpler than forming a corporation, as it does not require formal paperwork.

A limited liability company (LLC), akin to a corporation, provides limited personal liability. Although the creation of an LLC involves formal paperwork, the operational complexities are less compared to a corporation. LLC owners are not obligated to conduct regular ownership and management meetings or adhere to other corporate formalities.

Corporations also diverge from other business structures in their taxation approach. Corporations are subject to corporate income taxes on their “profits,” the remaining funds after covering salaries, bonuses, and other deductible expenses. Conversely, partnerships, sole proprietorships, and LLCs do not face direct taxation on business profits. Instead, these profits “pass through” to the owners, who report business income or losses on their individual tax returns.

Deciding whether to form a corporation or another business structure, such as an LLC, depends on various factors, including your specific needs and goals. While LLCs often offer a more cost-effective and straightforward option for limiting personal liability, there are situations where forming a corporation might be advantageous:

  1. Need for Stock Issuance: If your business requires the ability to issue stock or stock options to attract key employees or secure external investment, incorporating may be preferable.

  2. Profitability and Tax Planning: If your business is highly profitable, forming a corporation allows you to implement income splitting strategies, taking advantage of lower tax rates on corporate income.

  3. Family Business and Ownership Transfers: For family businesses looking to initiate ownership gifts as part of financial or estate planning, incorporating allows for easy transfer of shares without necessarily relinquishing management control or incurring gift taxes.

  4. External Requirements: Some external parties, such as companies hiring independent contractors, may insist on incorporation due to regulatory or contractual reasons. Incorporating can help avoid reclassification issues and provide assurance to clients or partners.

Indeed, corporations necessitate thorough paperwork for initiation and ongoing operations. Distinct from unincorporated businesses, but akin to LLCs, registering your corporation with the state is imperative. Following the registration, numerous states mandate the submission of annual reports to maintain the corporation’s good standing.

Moreover, corporations are bound by statutory regulations that don’t apply to other business structures such as LLCs, partnerships, or sole proprietorships. Compliance with corporate formalities is obligatory, including the documentation of significant decisions and the conduct of annual shareholder and director meetings with detailed minutes.

Furthermore, corporations are obligated to file and settle taxes through a separate corporate tax return. Establishing a comprehensive double-entry bookkeeping system, inclusive of daily journals and a general ledger, is indispensable for recording business transactions. This meticulous approach ensures accurate financial documentation for the corporation.

The notion of double taxation on corporate income—first at the corporate level and then again when distributed to shareholders—is accurate, but it primarily applies to profits disbursed as dividends. Dividends represent the portion of profits paid by the corporation to its shareholders as a return on their investment.

In practice, this double taxation scenario is infrequent in small corporations because shareholders typically opt for salaries and bonuses instead of dividends. By compensating themselves through salaries and bonuses, which the corporation can deduct as ordinary and necessary business expenses, shareholders can avoid corporate taxation on these amounts.

Salaries and bonuses are tax-deductible for the corporation, making them a more tax-efficient way for shareholders to receive compensation, in contrast to dividends, which are not deductible. Hence, by working for the corporation and drawing income in the form of salaries and bonuses, shareholders can effectively sidestep the issue of double taxation.

 
 
 

The term “foreign” may denote a corporation situated outside of the United States. However, within the U.S., individual states typically use “foreign” to characterize a company established in a different state.

For instance, consider incorporating your business in Delaware while operating in both Delaware and New York. In New York, your enterprise would be classified as a “foreign corporation” because it wasn’t incorporated in New York. Conversely, in Delaware, your corporation would be deemed a “domestic corporation” since it was formed within Delaware.

If you choose to incorporate your business in one state but wish to conduct operations in another state, you must meet the qualifications to do business in that additional state. Each state has its own set of procedures dictating when and how foreign corporations must register to engage in business activities.

 
 
 

Our standout customer service prioritizes consistent communication and genuine care for your business’s success. Our experienced accountants go beyond traditional services, offering proactive business advice and strategic tax planning to maximize your profits.

While an annual accounting solution might suit some based on cost, our monthly accounting services provide ongoing support and timely insights. This proactive approach allows us to offer valuable services like tax planning, ensuring you make informed decisions and lower your tax liability before year-end.

Explore why working with a monthly accountant eliminates the need for an annual accountant. Note that, while we handle personal taxes for business clients, some still opt for an annual accountant for personal tax needs. We provide flexible solutions to cater to your unique financial requirements.

For incorporated businesses, filing a corporate income tax return is required within six months from the year-end date. However, corporate taxes are due either sixty or ninety days from the year-end date, depending on the nature of the income.

For employees, the tax filing and payment deadline is April 30th. If you owe taxes, ensure your return is filed before April 30th or postmarked before midnight on the due date.

If you or your spouse/common-law partner operated a business in 2009, your return is not due until June 15th. However, the taxes payable are still due by April 30th. If the return is not completed by April 30th, you can estimate the taxes owed and make a payment based on the estimate. If you owe taxes, ensure the tax return is filed before midnight on June 15th or postmarked before midnight.

Getting started with Mackisen is simple. You can reach out to us through our contact page or by calling our office. Our team will guide you through the initial steps, understand your needs, and tailor a plan to help you achieve your financial goals.

 

Our standout customer service prioritizes consistent communication and genuine care for your business’s success. Our experienced accountants go beyond traditional services, offering proactive business advice and strategic tax planning to maximize your profits.

While an annual accounting solution might suit some based on cost, our monthly accounting services provide ongoing support and timely insights. This proactive approach allows us to offer valuable services like tax planning, ensuring you make informed decisions and lower your tax liability before year-end.

Explore why working with a monthly accountant eliminates the need for an annual accountant. Note that, while we handle personal taxes for business clients, some still opt for an annual accountant for personal tax needs. We provide flexible solutions to cater to your unique financial requirements.

For incorporated businesses, filing a corporate income tax return is required within six months from the year-end date. However, corporate taxes are due either sixty or ninety days from the year-end date, depending on the nature of the income.

June 15, 2023, is the deadline for self-employed individuals to file their 2022 income tax and benefit return. Although your tax filing deadline is June 15, 2023, your payment is due on April 30. We encourage you to pay by April 30th to avoid additional interest charges on your balance owed. June 15, 2023, is the deadline to file your taxes if you or your spouse or common-law partner are self-employed.

 

If meeting your payment obligations is challenging, seeking assistance from a bankruptcy office may provide tailored solutions. Reach out to the CRA to initiate a conversation about your circumstances, understand the repercussions of non-payment, and explore alternatives if meeting your debt obligation is currently unfeasible. Options include deferring repayment to a future date when it aligns with your financial capacity.  Initiate or modify a payment arrangement to better align with your financial capabilities. Engage in discussions about alternative avenues to address and resolve your outstanding debt.

You may find it necessary to remit installment payments if the CRA mandates you to cover anticipated tax liabilities for the upcoming tax year. These tax instalments involve making periodic payments throughout the year, serving as an advance contribution toward the total tax amount typically settled in a lump sum on April 30 of the subsequent year. Similar to an employer deducting taxes from each pay period, you fulfill these instalments while earning income. It becomes mandatory to remit tax instalments for the next tax year if your net tax owed exceeds $3,000 (or $1,800 for Quebec) in 2023, and either 2022 or 2021. Failure to meet these obligations may result in the imposition of interest charges and potential penalties for insufficient or missed payments.

If you receive a letter from the government demanding the filing of your taxes, it’s important to comply promptly. Section 150(2) of the Income Tax Act empowers the CRA to require the filing of a return for a designated tax year. Whether you owe taxes or are entitled to a refund, you must file the return as instructed. Typically, the CRA provides a 30-day window for compliance. Failure to file the return after receiving such a demand is considered a criminal offense. Filing your return annually is a proactive measure to avoid government scrutiny, audits, or potential criminal investigations.

Penalties and Interest for Late Filing:

If you fail to file your tax return on time and you owe tax, you may incur the following penalties and interest:

Penalty: 5% of the outstanding balance, plus an additional 1% for each month the return is late, up to a maximum of 12 months. This totals to a maximum penalty of 17%. If you’ve been late in filing in any of the last three previous years, the penalty can be higher. To avoid stress and potential penalties, it’s recommended to contact Tax Doctors Canada as soon as possible.

We typically require financial statements, income records, expense details, and other relevant documentation. Our team communicates clearly about the information needed, making the tax preparation process efficient and accurate.

For Personal TAX the information that are needed are:  Personal Information, income slips,  employment (T4, RL-1), retirement, saving and investments, retirement and Social Benefits, and Employment Insurance.

  1.  Family, Childcare, and Caregivers Deductions 
  2. Education Deductions 
  3. Disability Deductions 
  4. Pension Amount Deductions 
  5. RRSP Deductions 
  6. Employment Expenses Deductions 
  7. Provincial and Territorial Deductions 
  8. RPP (Registered Pension Plan) Deductions 
  9. Split Pension Deduction 
  10. Annual Union, Professional, or Like Dues Deductions

It is important to keep complete records of the money you make and spend. Your records must give enough detail to determine the tax you owe and support any deductions or credits you are claiming. You need to keep all supporting documents as part of your records.

Sometimes, CRA and ARQ to make sure that income, deductions, and credits are properly reported. If your file is reviewed, having your receipts and records on hand will make it easier for you to support your claims.

You have the flexibility to choose the frequency of updates – whether monthly, quarterly, or annually. However, for optimal benefits, regular updates are recommended. Many of our clients find monthly updates preferable, and we highly recommend this option to ensure you receive timely and accurate information.

Certainly! Even if you haven’t had a bookkeeper before and your documents have piled up, we can still help. Our team will take care of organizing and summarizing all your receipts, invoices, bank statements, credit card statements, and any other documents that may have accumulated. No need for pre-sorting or organizing – we’ve got it covered!

Being self-employed means working for yourself. If you operate as a freelancer, a home-based business owner, consultant, or engage in side gigs, you likely have self-employment income.

In tax terms, as per the CRA (Canada Revenue Agency), you are considered self-employed if you function as an independent contractor, operate as a sole proprietor, or participate as a partner in a business partnership, providing a service or product with an expectation of profit. There are generally three classifications for self-employment:

  1. Independent contractor: Providing a specific service for someone else on a contractual basis.
  2. Sole proprietor: Running your business independently, and your business is unincorporated.
  3. Partnership: Operating your self-employed business with two or more parties involved.

Common Returns to File:

If incorporated, businesses need to file a corporate income tax return within six months from the year-end date. Corporate taxes are due within sixty or ninety days from the year-end date, depending on the nature of the income.

Other returns include:

  1. • GST/HST for registered businesses with monthly, quarterly, or annual filing deadlines. 
  2. Payroll remittances, varying based on volume, with a typical monthly frequency for SMEs. T4 slips must be issued based on the calendar year by the end of February of the following year. 
  3. Workers Compensation Board premiums, typically due monthly, with an annual reconciliation. 
  4. Employer Health Tax premiums for businesses with a payroll exceeding $450,000.

You may need to file a tax return in various situations:

  1. If you owe taxes.
  2. If you receive a request to file from the revenue agency.
  3. If you wish to split your pension with your spouse or common-law partner.
  4. If you dispose of capital property.
  5. If you have to repay Old Age Security or Employment Insurance benefits.
  6. If you need to contribute to the Canada Pension Plan.
  7. If you have not repaid your withdrawal from your RRSP under the Home Buyers’ Plan or Life Long Learning Plan.

For businesses operating in Canada, adhering to the requisite filing requirements is vital to maintaining compliance with tax regulations. This overview outlines the key obligations businesses must fulfill regarding corporate tax returns, Goods and Services Tax (GST), Quebec Sales Tax (QST), and source deductions for employees.

  1. Corporate Tax Return: Every business, whether incorporated or not, is obligated to file an annual corporate tax return. The filing deadline is typically within six months from the year-end date. Incorporated businesses must adhere to specific deadlines, with variations based on the nature of the income.

  2. Goods and Services Tax (GST) and Quebec Sales Tax (QST): Businesses with annual revenues exceeding the specified threshold are required to register for GST and possibly QST. Once registered, they must remit these taxes to the Canada Revenue Agency (CRA). The frequency of remittance—monthly, quarterly, or annually—depends on the business’s sales volume.

  3. Source Deductions for Employees: If a business has employees, it is responsible for withholding and remitting source deductions, including income tax, Canada Pension Plan (CPP), and Employment Insurance (EI). Businesses must accurately report these deductions to the CRA and remit the withheld amounts on a regular basis.

  4. Quebec Tax Return (for Businesses Registered in Quebec): For businesses operating in Quebec, an additional requirement is filing the Quebec tax return. This return is separate from the federal corporate tax return and must be submitted to Revenu Québec.

The CRA can see the contents of your bank account. The CRA regularly puts accounts with seemingly unscrupulous activity under their microscope. They are on the lookout for penalty-worthy offenses, such as over-contributing to a TFSA or undeclared income.

 

Our team at Mackisen specializes in R&D finance and can guide you through the process of accessing subsidies. Eligibility criteria vary, but we work closely with you to determine your qualification and optimize benefits.

Yes, if your business operates as a sole proprietorship or partnership, you utilize the same income tax return for both personal and business taxes, filing through the T1 income tax form. On the other hand, if your business is structured as a corporation, you are required to file a separate T2 corporate income tax return for the business.

 
 
 

A distinctive feature of a corporation, setting it apart from other business types, is its status as an independent legal entity, distinct from its owners, controllers, and managers. In the eyes of corporation and tax laws, a corporation is considered a legal “person” capable of engaging in contracts, incurring debts, and fulfilling tax obligations independently of its owners. This separate legal existence entails significant characteristics, including the corporation’s continuity even if ownership (shareholders) changes or individuals pass away. Additionally, owners (shareholders) enjoy limited liability, meaning they are not personally accountable for the corporation’s debts.

Corporations are composed of shareholders, directors, and officers. Shareholders hold stock, represented by individual shares, in the corporation. The board of directors, or directors, supervises the corporation, making critical decisions for the business. Finally, officers manage the corporation’s day-to-day operations and typically report to the board.

For a more in-depth understanding of corporate operations, you can explore our article on comprehending corporate structure.

 
 
 

The concept of “limited liability” for a business owner implies that they bear no personal responsibility for the corporation’s debts and commitments. Simply put, if the corporation faces legal action, only the assets of the business are susceptible to risk, and the personal assets of the owners (shareholders), such as their homes or vehicles, remain protected. To sustain this limited liability privilege, the corporation’s owners must adhere to specific corporate formalities, fulfill paperwork obligations, and adequately finance (“capitalize”) their business.

Historically associated with corporations, limited liability serves as a primary motivator for individuals contemplating the process of incorporation. However, alternative business structures, like LLCs, now extend this limited personal liability benefit to business owners, while sole proprietorships and general partnerships do not.

Creating a corporation involves a series of legal steps to establish its existence. The initial step is to file a concise document known as “articles of incorporation” with the state’s corporations division. The terminology for this document may vary by state, referred to as a “certificate of incorporation,” “certificate of formation,” or “charter.” The filing incurs a fee ranging from approximately $100 to $800, contingent on state regulations. The articles of incorporation contain essential information, including:

  • Corporation name
  • Corporate address
  • Details of the registered agent (the designated person for public contact regarding the corporation)
  • In certain states, the names of the corporation’s directors

Simultaneously, the creation of “corporate bylaws” is imperative, offering an extensive document delineating the operational rules, decision-making procedures, and voting rights within the corporation.

Subsequently, an inaugural board of directors meeting is convened to address formalities and make pivotal decisions. Additionally, shares of stock must be issued to the initial owners (shareholders) before commencing business operations.

In contrast to sole proprietors and owners of partnerships and LLCs, the taxation structure for a corporation’s owners is distinctive. Owners of a corporation are not subject to individual taxes on the entirety of business profits. Instead, they are taxed solely on profits distributed to them as salaries, bonuses, or dividends. Dividends represent portions of profits that some large corporations pay to shareholders as a return on their investment in the company. Meanwhile, the corporation itself incurs taxes, subject to specific corporate tax rates, on any retained profits left within the company from one fiscal year to the next.

It’s important to note that this taxation model doesn’t apply to S corporations, which opt for a taxation approach akin to partnerships. Regular corporations, as outlined above, are referred to as “C corporations.” S corporations, much like sole proprietorships, partnerships, and LLCs, are classified as pass-through tax entities. If a corporation elects S corporation status, all profits and losses of the corporation will “pass through” to the owners, who must report them on their individual income tax returns.

Yes, you should be mindful of securities laws when issuing stock in your corporation. Securities laws are designed to regulate the issuance and trading of securities, including stocks. The rules vary by jurisdiction, and it’s crucial to comply with them to avoid legal issues.

When issuing stock, consider the following key points:

  1. Registration Requirements: In many jurisdictions, the issuance of securities must be registered with the relevant regulatory authorities unless an exemption is available. Registration involves providing detailed information about the company and its securities.

  2. Exemptions: Some jurisdictions provide exemptions from registration for certain types of offerings, especially those involving a limited number of investors or sophisticated investors. Familiarize yourself with the exemptions applicable in your jurisdiction.

  3. Disclosure Requirements: Even if registration is not required, securities laws often mandate disclosure to investors. This may include providing them with information about the company’s financial condition, business operations, and the risks associated with the investment.

  4. Anti-Fraud Provisions: Securities laws typically include anti-fraud provisions that prohibit misleading statements or omissions of material facts in connection with the issuance of securities.

  5. Investor Qualifications: Some offerings are limited to “accredited investors” or individuals meeting specific financial criteria. Ensure that your offering complies with these investor qualification requirements.

  6. Consult Legal Professionals: Given the complexity of securities laws, it’s advisable to consult legal professionals experienced in securities regulation to guide you through the process and ensure compliance.

Failure to comply with securities laws can lead to severe consequences, including fines, rescission rights for investors, and legal liabilities. Therefore, it’s essential to seek legal advice and adhere to the applicable regulations when issuing stock in your corporation.

For employees, the tax filing and payment deadline is April 30th. If you owe taxes, ensure your return is filed before April 30th or postmarked before midnight on the due date.

If you or your spouse/common-law partner operated a business in 2009, your return is not due until June 15th. However, the taxes payable are still due by April 30th. If the return is not completed by April 30th, you can estimate the taxes owed and make a payment based on the estimate. If you owe taxes, ensure the tax return is filed before midnight on June 15th or postmarked before midnight.

Getting started with Mackisen is simple. You can reach out to us through our contact page or by calling our office. Our team will guide you through the initial steps, understand your needs, and tailor a plan to help you achieve your financial goals.

 

Mackisen prioritizes client confidentiality and data security. We employ industry-standard practices and robust security measures to safeguard your financial information and ensure compliance with privacy regulations.

We typically require financial statements, income records, expense details, and other relevant documentation. Our team communicates clearly about the information needed, making the tax preparation process efficient and accurate.

Absolutely. Mackisen excels in tax planning and compliance services for businesses. Our team ensures that your business meets all tax obligations while maximizing benefits through strategic planning.

Mackisen serves a diverse range of industries, including but not limited to technology, healthcare, renewable energy, automotive, aerospace, and biotechnology. Our team’s expertise spans various sectors to meet the specific needs of our clients.

The optimal method for filing your taxes is through a CPA Auditor, as they possess the highest level of education and can offer additional related services.

You should have received most of your slips and receipts by the end of February. However, you may not receive your T3 and T5013 slips until the end of March. Receipts for RRSP and PRPP contributions made in the first 60 days of the tax year may not be received until May.

Types of tax slips include

  • T4: Statement of Remuneration Paid
  • T4A: Statement of Pension, Retirement, Annuity, and Other Income
  • T4A(OAS): Statement of Old Age Security
  • T4A(P): Statement of Canada Pension Plan Benefits
  • T4E: Statement of Employment Insurance and Other Benefits
  • T4RIF: Statement of income from a Registered Retirement Income Fund
  • T4RSP: Statement of RRSP Income
  • T5: Statement of Investment Income – slip information for individuals
  • T5007: Statement of Benefits
  • T5008: Statement of Securities Transactions – slip information for individuals
  • T5013: Statement of Partnership income
  • T5018: Statement of Contract Payments
  • T3: Statement of Trust Income Allocations and Designations – slip information for individuals
  • T2202: Tuition Enrolment Certificate
  • T1204: Government Services Contract Payments
  • RC62: Universal Child Care Benefit statement
  • RC210: Working Income Tax Benefit Advance Payments Statement
  • RRSP contribution receipt – slip information for individuals
  • PRPP contribution receipt – slip information for individuals

If the tax return is electronically filed, the return usually takes between seven to fifteen days. If the return is mailed, it usually takes four to six weeks.

  1. Pay Online:

    • Online banking
    • Pre-authorized debit (PAD) payments
    • Debit card payments
    • Credit card, PayPal, Interac e-Transfer payments
    • Wire transfer and internationally issued credit card payments (option for non-residents)
  2. Pay in Person:

    • Visit our office to make a payment
  3. Pay by Mail:

    • Send a payment through traditional mail
  4. Confirm Your Payment:

    • Ensure your payment is successfully processed and confirmed.

They are due by the following dates (except for farmers and fishers who have one due date on December 31):

March 15,  June 15,  September 15,  December 15

If a tax assessment has been mailed to the taxpayer and full payment is not made immediately, the CRA can initiate collection actions. Failure to make a payment, contact the CRA for payment arrangements, or file an objection may lead to various collection methods. The CRA can garnish wages, withhold income tax refunds, seize bank accounts and other assets (such as a home or cottage), and register liens on property, among other measures.

Interest on a tax refund begins to accumulate on the later of the following three dates:

  1. The 31st day after you file your tax return.
  2. 31 days after the balance due date for the year, which could be May or July 15th if you are self-employed.
 

There’s no minimum income to file taxes in Canada. However, almost everyone get audited for not declaring enough income to cover their living expenses, investments or money in the bank.

  1. Amounts Exempt from Tax Under Section 87 of the Indian Act (Section 87 Tax Exemption). 
  2. Lottery Winnings of Any Amount, Except When Classified as Income from Employment, a Business or Property, or a Prize for Achievement • Most Gifts and Inheritances. 
  3. Amounts Paid by Canada or an Allied Country (Non-taxable in That Country) for Disability or Death of a War Veteran Due to War Service.
  4. GST/HST Credit and Canada Child Benefit (CCB) Payments, Including Those from Related Provincial and Territorial Programs 
  5. Family Allowance Payments and the Supplement for Handicapped Children Paid by the Province of Quebec 
  6. Compensation Received from a Province or Territory if You Were a Victim of a Criminal Act or a Motor Vehicle Accident 
  7. Most Amounts Received from a Life Insurance Policy Following Someone’s Death. 
  8. Most Types of Strike Pay Received from Your Union, Even if Performing Picketing Duties as a Membership Requirement 
  9. Most Amounts Received from a Tax-Free Savings Account (TFSA)

To effectively assist you in achieving your business objectives, we need access to your online accounts and source documents, which can be provided in either electronic or hard copy format. Essential documents include, but are not limited to:

  • Business bank and credit card statements
  • Sales systems (POS)
  • Accounting software
  • Inventory records
  • Accounts payable and receivable data

Certainly. Audit representation is part of your monthly accounting fee, and you will not incur additional charges for this service unless the audit pertains to a period when you were not our client.

At Mackisen, we provide agent-level support, directly engaging with the IRS agent in the case of income tax audits. The majority of these matters are typically resolved at the agent level, eliminating the need for involvement in tax court proceedings. Additionally, if we handle your monthly sales tax returns, we will also represent you in the event of a sales tax audit. Our goal is to provide comprehensive support throughout the audit process.

We recognize that being selected for a government audit can be a stressful situation. Rest assured, we will handle the response to any government inquiry and assist in preparing the necessary documents requested by the government. Your peace of mind is our priority during the audit process.

Cash is the lifeblood of your business operations, playing a crucial role in supporting growth. Insufficient cash can hinder your ability to cover essential expenses such as employee salaries, fund marketing and sales initiatives, acquire and retain customers, and carry out day-to-day activities like purchasing equipment and facilities. The cash flow of a business is a pivotal determinant of its potential for long-term success. Even a business with significant revenue can face failure if it struggles to generate sufficient cash.

As a self-employed person, you are required to disclose all income and expenses on your tax return. Whether your income is solely from self-employment or a mix of self-employment and regular employment, you can consolidate both sources into a single tax return.

The best defense against an audit is to file your tax return every year and on time. Why give the CRA a reason to examine your tax situation? Get it done! If you file a GST return, make sure the revenue on your business statement T2125 matches the revenue that is on the GST return

Incorporating comes with both benefits and disadvantages. One significant advantage is limited liability, wherein the shareholders’ risk is limited to the amount paid for their shares. The corporation operates as a separate legal entity, and the shareholders are not personally responsible for the company’s liabilities. For instance, if you invested $100 in shares, your potential loss is capped at $100.

Another benefit is tax deferral. Corporations may pay tax, under certain conditions, at a rate of around 16%, whereas individuals, at the highest tax bracket, face a rate of approximately 46%. When income remains within the corporation, it incurs a 16% tax on active business income, providing a deferral of about 30% (46 – 16). However, once the income is distributed as a salary, the deferral ends.

On the downside, incorporating can be costly. Legal fees for incorporating the business might range from $1,000 to $2,000, and additional expenses include accounting fees for preparing financial statements and corporate tax returns.

Another drawback is that losses stay within the corporation. In the initial years of business, you may experience losses. While these losses can be carried forward for twenty years or carried back three years, if the corporation doesn’t generate income, the losses expire. In contrast, as a sole proprietor, you could deduct these losses against other personal income, such as employment income.

As technology continues to revolutionize various aspects of our lives, the Canada Revenue Agency (CRA) is not exempt from leveraging these advancements for tax enforcement. In this digital age, the CRA employs sophisticated methods to scrutinize individuals and businesses, aiming to identify tax fraud and evasion. Here are four ways the CRA utilizes technology to keep tabs on taxpayers.

  1. Online Buying and Selling Habits/Social Media: Platforms like eBay and Kijiji provide convenient online marketplaces, but the CRA closely monitors users who might be generating income through these channels. Failure to report profits made from online sales could attract the CRA’s attention. Additionally, social media platforms like Facebook and Twitter are not exempt from scrutiny, with lavish posts potentially triggering further investigation.

  2. Bank Accounts: The CRA has the ability to access and examine the contents of bank accounts. Accounts displaying suspicious or unscrupulous activities, such as over-contributions to Tax-Free Savings Accounts (TFSA) or undisclosed income, may be subject to closer examination by the CRA.

  3. Computerization and AI: Artificial intelligence and computerization play a crucial role in the CRA’s efforts to identify potential audit candidates. Retailers, equipped with vast consumer information, can share data with the CRA, allowing the agency to flag individuals for audits based on purchasing patterns and other relevant data.

  4. Data Analysis and Net Worth Assessment: The CRA collects and analyzes vast amounts of data, creating “leads” for CRA agents to investigate further. This information serves as a basis for conducting a net worth assessment and estimating an individual’s income. Subsequently, taxpayers must defend themselves against these assessments, working with their accountants to challenge figures that seem inaccurate or inflated.

Generally, at our firm, we start filing on February 20

You may have to pay a federal and provincial or territorial penalty if you fail to report an amount of $500 or more for the following:

  • your 2022 tax return
  • your 2019, 2020, or 2021 tax return

The penalty is whichever amount is less:

  • 10% of the amount you failed to report (federal and provincial or territorial)
  • 50% of the difference between:
    • the understated tax or overstated credits of the amount that you failed to report
    • the tax withheld from the amount you failed to report

The CRA may grant you penalty relief if you voluntarily disclose amounts that you failed to report and/or credits that you overstated before the CRA contacts you or anyone who is related to you.

In contrast to partnerships and sole proprietorships, corporations offer limited personal liability for business debts. Limited liability ensures that creditors cannot pursue the owner’s personal assets to settle business debts. However, the process of establishing and managing a partnership or sole proprietorship is simpler than forming a corporation, as it does not require formal paperwork.

A limited liability company (LLC), akin to a corporation, provides limited personal liability. Although the creation of an LLC involves formal paperwork, the operational complexities are less compared to a corporation. LLC owners are not obligated to conduct regular ownership and management meetings or adhere to other corporate formalities.

Corporations also diverge from other business structures in their taxation approach. Corporations are subject to corporate income taxes on their “profits,” the remaining funds after covering salaries, bonuses, and other deductible expenses. Conversely, partnerships, sole proprietorships, and LLCs do not face direct taxation on business profits. Instead, these profits “pass through” to the owners, who report business income or losses on their individual tax returns.

Deciding whether to form a corporation or another business structure, such as an LLC, depends on various factors, including your specific needs and goals. While LLCs often offer a more cost-effective and straightforward option for limiting personal liability, there are situations where forming a corporation might be advantageous:

  1. Need for Stock Issuance: If your business requires the ability to issue stock or stock options to attract key employees or secure external investment, incorporating may be preferable.

  2. Profitability and Tax Planning: If your business is highly profitable, forming a corporation allows you to implement income splitting strategies, taking advantage of lower tax rates on corporate income.

  3. Family Business and Ownership Transfers: For family businesses looking to initiate ownership gifts as part of financial or estate planning, incorporating allows for easy transfer of shares without necessarily relinquishing management control or incurring gift taxes.

  4. External Requirements: Some external parties, such as companies hiring independent contractors, may insist on incorporation due to regulatory or contractual reasons. Incorporating can help avoid reclassification issues and provide assurance to clients or partners.

Indeed, corporations necessitate thorough paperwork for initiation and ongoing operations. Distinct from unincorporated businesses, but akin to LLCs, registering your corporation with the state is imperative. Following the registration, numerous states mandate the submission of annual reports to maintain the corporation’s good standing.

Moreover, corporations are bound by statutory regulations that don’t apply to other business structures such as LLCs, partnerships, or sole proprietorships. Compliance with corporate formalities is obligatory, including the documentation of significant decisions and the conduct of annual shareholder and director meetings with detailed minutes.

Furthermore, corporations are obligated to file and settle taxes through a separate corporate tax return. Establishing a comprehensive double-entry bookkeeping system, inclusive of daily journals and a general ledger, is indispensable for recording business transactions. This meticulous approach ensures accurate financial documentation for the corporation.

The notion of double taxation on corporate income—first at the corporate level and then again when distributed to shareholders—is accurate, but it primarily applies to profits disbursed as dividends. Dividends represent the portion of profits paid by the corporation to its shareholders as a return on their investment.

In practice, this double taxation scenario is infrequent in small corporations because shareholders typically opt for salaries and bonuses instead of dividends. By compensating themselves through salaries and bonuses, which the corporation can deduct as ordinary and necessary business expenses, shareholders can avoid corporate taxation on these amounts.

Salaries and bonuses are tax-deductible for the corporation, making them a more tax-efficient way for shareholders to receive compensation, in contrast to dividends, which are not deductible. Hence, by working for the corporation and drawing income in the form of salaries and bonuses, shareholders can effectively sidestep the issue of double taxation.

 
 
 

The term “foreign” may denote a corporation situated outside of the United States. However, within the U.S., individual states typically use “foreign” to characterize a company established in a different state.

For instance, consider incorporating your business in Delaware while operating in both Delaware and New York. In New York, your enterprise would be classified as a “foreign corporation” because it wasn’t incorporated in New York. Conversely, in Delaware, your corporation would be deemed a “domestic corporation” since it was formed within Delaware.

If you choose to incorporate your business in one state but wish to conduct operations in another state, you must meet the qualifications to do business in that additional state. Each state has its own set of procedures dictating when and how foreign corporations must register to engage in business activities.

 
 
 
  1. Employment and self-employment income. Report various sources of income, encompassing both employment and self-employment, such as commissions, foreign employment income, medical premium benefits, veterans’ benefits, Wage Earner Protection Program proceeds, taxable benefits related to group term life insurance plan premiums, amounts received from supplementary unemployment benefit plans (including guaranteed annual wage plans), royalties, specific GST/HST and Quebec sales tax (QST) rebates, income-maintenance insurance plans (including wage-loss replacement plans), clergy’s housing allowance, or eligible utilities. Additionally, include any employment income not documented on a T4 slip.
  2. Pension and Savings Plans Income: Include income from pension and savings plans, such as Old Age Security, CPP or QPP benefits, and pensions received from other countries.
  3. Investment Income: Disclose income generated through investments, encompassing interest, dividends, and capital gains.
  4. Benefit Income: Report income derived from benefits, including Employment Insurance (EI) and other benefit programs, workers’ compensation benefits, social assistance payments, or Universal Child Care Benefit (UCCB)
  5. All Types of Income: Conduct a comprehensive review of all income types applicable to your tax return. This includes referring to the guide for T1 and TP1, covering other pensions and superannuation. This involves payments from annuities, Pooled Registered Pension Plans (PRPP), and Registered Retirement Income Funds (RRIF), including life income funds. Also, consider pensions received from foreign countries.
  6. Elected Split-Pension Amount and UCCB
  7. Employment Insurance and Other Benefits 
  8. Taxable Amount of Dividends from Taxable Canadian Corporations, Interest, and Other Investment Income
  9. Net Partnership Income (Limited or Non-active Partners Only)
  10.  Registered Disability Savings Plan Income 
  11. Rental Income, Support Payments Received 
  12. Registered Retirement Savings Plan (RRSP) Income 
  13. Lump-sum Payments, Retiring Allowance 
  14. Death Benefits (Other Than CPP or QPP Death Benefits)
  15. Taxable Capital Gains: Calculating and Reporting Your Capital Gains and Losses 
  16. Capital Losses and Deductions 
  17. Shares, Funds, and Other Units 
  18. Capital Gains (or Losses) from Information Slips 
  19. Principal Residence and Other Real Estate 
  20. Transfers of Capital Property 
  21. Capital Gains and Losses from a Business or Partnership 
  22. Gifts of Shares, Stock Options, and Other Capital Property

At Mackisen, we offer a variety of services including accounting, tax audits, financial statement audits, tax filing, and consulting.   Also, we provide additional services through our network of experts such as business loans, mortgages, immigration, litigation, marketing, mergers, acquisitions, real estate, and so on.

For employees, the tax filing and payment deadline is April 30th. If you owe taxes, ensure your return is filed before April 30th or postmarked before midnight on the due date.

If you or your spouse/common-law partner operated a business in 2009, your return is not due until June 15th. However, the taxes payable are still due by April 30th. If the return is not completed by April 30th, you can estimate the taxes owed and make a payment based on the estimate. If you owe taxes, ensure the tax return is filed before midnight on June 15th or postmarked before midnight.

Getting started with Mackisen is simple. You can reach out to us through our contact page or by calling our office. Our team will guide you through the initial steps, understand your needs, and tailor a plan to help you achieve your financial goals.

 

  1. Employment and self-employment income. Report various sources of income, encompassing both employment and self-employment, such as commissions, foreign employment income, medical premium benefits, veterans’ benefits, Wage Earner Protection Program proceeds, taxable benefits related to group term life insurance plan premiums, amounts received from supplementary unemployment benefit plans (including guaranteed annual wage plans), royalties, specific GST/HST and Quebec sales tax (QST) rebates, income-maintenance insurance plans (including wage-loss replacement plans), clergy’s housing allowance, or eligible utilities. Additionally, include any employment income not documented on a T4 slip.
  2. Pension and Savings Plans Income: Include income from pension and savings plans, such as Old Age Security, CPP or QPP benefits, and pensions received from other countries.
  3. Investment Income: Disclose income generated through investments, encompassing interest, dividends, and capital gains.
  4. Benefit Income: Report income derived from benefits, including Employment Insurance (EI) and other benefit programs, workers’ compensation benefits, social assistance payments, or Universal Child Care Benefit (UCCB)
  5. All Types of Income: Conduct a comprehensive review of all income types applicable to your tax return. This includes referring to the guide for T1 and TP1, covering other pensions and superannuation. This involves payments from annuities, Pooled Registered Pension Plans (PRPP), and Registered Retirement Income Funds (RRIF), including life income funds. Also, consider pensions received from foreign countries.
  6. Elected Split-Pension Amount and UCCB
  7. Employment Insurance and Other Benefits 
  8. Taxable Amount of Dividends from Taxable Canadian Corporations, Interest, and Other Investment Income
  9. Net Partnership Income (Limited or Non-active Partners Only)
  10.  Registered Disability Savings Plan Income 
  11. Rental Income, Support Payments Received 
  12. Registered Retirement Savings Plan (RRSP) Income 
  13. Lump-sum Payments, Retiring Allowance 
  14. Death Benefits (Other Than CPP or QPP Death Benefits)
  15. Taxable Capital Gains: Calculating and Reporting Your Capital Gains and Losses 
  16. Capital Losses and Deductions 
  17. Shares, Funds, and Other Units 
  18. Capital Gains (or Losses) from Information Slips 
  19. Principal Residence and Other Real Estate 
  20. Transfers of Capital Property 
  21. Capital Gains and Losses from a Business or Partnership 
  22. Gifts of Shares, Stock Options, and Other Capital Property

At Mackisen, we offer a variety of services including accounting, tax audits, financial statement audits, tax filing, and consulting.   Also, we provide additional services through our network of experts such as business loans, mortgages, immigration, litigation, marketing, mergers, acquisitions, real estate, and so on.

Mackisen distinguishes itself through specialized expertise, a personalized approach, a proven track record in various industries, and a commitment to client-centric values. We focus on tailoring financial solutions to meet your unique needs.

For someone who is a senior or an employee, you will have to file and pay your taxes by April 30th. If you owe taxes, make sure your return is filed before April 30th, and pay your taxes by April 30th to avoid late filing penalties, late payment fees, and interest. It’s best to have your taxes postmarked before midnight on the due date. If your tax return was filed electronically, and it was refused due to an error, then you may have an additional 5 days to correct and file.

Our services are competitive and the cost will vary depending on what services are requested. Our rates will vary based on the level of expertise and the volume and nature of transactions. We allocate resources to give clients the best rate. Ask us what will be the cost for your service before we start working on your file. This way we can maintain good understanding and bring long term relationship.

Our accounting firm provides comprehensive support for immigrants, including meticulous tax preparations, financial planning, and other services to ensure compliance and financial success during the immigration journey.

Our experts guide you through the grant application process, offering support in preparing documentation and ensuring compliance with requirements. We aim to make the application process seamless for your organization.

Our standout customer service prioritizes consistent communication and genuine care for your business’s success. Our experienced accountants go beyond traditional services, offering proactive business advice and strategic tax planning to maximize your profits.

While an annual accounting solution might suit some based on cost, our monthly accounting services provide ongoing support and timely insights. This proactive approach allows us to offer valuable services like tax planning, ensuring you make informed decisions and lower your tax liability before year-end.

Explore why working with a monthly accountant eliminates the need for an annual accountant. Note that, while we handle personal taxes for business clients, some still opt for an annual accountant for personal tax needs. We provide flexible solutions to cater to your unique financial requirements.

For incorporated businesses, filing a corporate income tax return is required within six months from the year-end date. However, corporate taxes are due either sixty or ninety days from the year-end date, depending on the nature of the income.

June 15, 2023, is the deadline for self-employed individuals to file their 2022 income tax and benefit return. Although your tax filing deadline is June 15, 2023, your payment is due on April 30. We encourage you to pay by April 30th to avoid additional interest charges on your balance owed. June 15, 2023, is the deadline to file your taxes if you or your spouse or common-law partner are self-employed.

 

If meeting your payment obligations is challenging, seeking assistance from a bankruptcy office may provide tailored solutions. Reach out to the CRA to initiate a conversation about your circumstances, understand the repercussions of non-payment, and explore alternatives if meeting your debt obligation is currently unfeasible. Options include deferring repayment to a future date when it aligns with your financial capacity.  Initiate or modify a payment arrangement to better align with your financial capabilities. Engage in discussions about alternative avenues to address and resolve your outstanding debt.

You may find it necessary to remit installment payments if the CRA mandates you to cover anticipated tax liabilities for the upcoming tax year. These tax instalments involve making periodic payments throughout the year, serving as an advance contribution toward the total tax amount typically settled in a lump sum on April 30 of the subsequent year. Similar to an employer deducting taxes from each pay period, you fulfill these instalments while earning income. It becomes mandatory to remit tax instalments for the next tax year if your net tax owed exceeds $3,000 (or $1,800 for Quebec) in 2023, and either 2022 or 2021. Failure to meet these obligations may result in the imposition of interest charges and potential penalties for insufficient or missed payments.

If you receive a letter from the government demanding the filing of your taxes, it’s important to comply promptly. Section 150(2) of the Income Tax Act empowers the CRA to require the filing of a return for a designated tax year. Whether you owe taxes or are entitled to a refund, you must file the return as instructed. Typically, the CRA provides a 30-day window for compliance. Failure to file the return after receiving such a demand is considered a criminal offense. Filing your return annually is a proactive measure to avoid government scrutiny, audits, or potential criminal investigations.

Penalties and Interest for Late Filing:

If you fail to file your tax return on time and you owe tax, you may incur the following penalties and interest:

Penalty: 5% of the outstanding balance, plus an additional 1% for each month the return is late, up to a maximum of 12 months. This totals to a maximum penalty of 17%. If you’ve been late in filing in any of the last three previous years, the penalty can be higher. To avoid stress and potential penalties, it’s recommended to contact Tax Doctors Canada as soon as possible.

We typically require financial statements, income records, expense details, and other relevant documentation. Our team communicates clearly about the information needed, making the tax preparation process efficient and accurate.

For Personal TAX the information that are needed are:  Personal Information, income slips,  employment (T4, RL-1), retirement, saving and investments, retirement and Social Benefits, and Employment Insurance.

  1.  Family, Childcare, and Caregivers Deductions 
  2. Education Deductions 
  3. Disability Deductions 
  4. Pension Amount Deductions 
  5. RRSP Deductions 
  6. Employment Expenses Deductions 
  7. Provincial and Territorial Deductions 
  8. RPP (Registered Pension Plan) Deductions 
  9. Split Pension Deduction 
  10. Annual Union, Professional, or Like Dues Deductions

It is important to keep complete records of the money you make and spend. Your records must give enough detail to determine the tax you owe and support any deductions or credits you are claiming. You need to keep all supporting documents as part of your records.

Sometimes, CRA and ARQ to make sure that income, deductions, and credits are properly reported. If your file is reviewed, having your receipts and records on hand will make it easier for you to support your claims.

You have the flexibility to choose the frequency of updates – whether monthly, quarterly, or annually. However, for optimal benefits, regular updates are recommended. Many of our clients find monthly updates preferable, and we highly recommend this option to ensure you receive timely and accurate information.

Certainly! Even if you haven’t had a bookkeeper before and your documents have piled up, we can still help. Our team will take care of organizing and summarizing all your receipts, invoices, bank statements, credit card statements, and any other documents that may have accumulated. No need for pre-sorting or organizing – we’ve got it covered!

Being self-employed means working for yourself. If you operate as a freelancer, a home-based business owner, consultant, or engage in side gigs, you likely have self-employment income.

In tax terms, as per the CRA (Canada Revenue Agency), you are considered self-employed if you function as an independent contractor, operate as a sole proprietor, or participate as a partner in a business partnership, providing a service or product with an expectation of profit. There are generally three classifications for self-employment:

  1. Independent contractor: Providing a specific service for someone else on a contractual basis.
  2. Sole proprietor: Running your business independently, and your business is unincorporated.
  3. Partnership: Operating your self-employed business with two or more parties involved.

Common Returns to File:

If incorporated, businesses need to file a corporate income tax return within six months from the year-end date. Corporate taxes are due within sixty or ninety days from the year-end date, depending on the nature of the income.

Other returns include:

  1. • GST/HST for registered businesses with monthly, quarterly, or annual filing deadlines. 
  2. Payroll remittances, varying based on volume, with a typical monthly frequency for SMEs. T4 slips must be issued based on the calendar year by the end of February of the following year. 
  3. Workers Compensation Board premiums, typically due monthly, with an annual reconciliation. 
  4. Employer Health Tax premiums for businesses with a payroll exceeding $450,000.

You may need to file a tax return in various situations:

  1. If you owe taxes.
  2. If you receive a request to file from the revenue agency.
  3. If you wish to split your pension with your spouse or common-law partner.
  4. If you dispose of capital property.
  5. If you have to repay Old Age Security or Employment Insurance benefits.
  6. If you need to contribute to the Canada Pension Plan.
  7. If you have not repaid your withdrawal from your RRSP under the Home Buyers’ Plan or Life Long Learning Plan.

For businesses operating in Canada, adhering to the requisite filing requirements is vital to maintaining compliance with tax regulations. This overview outlines the key obligations businesses must fulfill regarding corporate tax returns, Goods and Services Tax (GST), Quebec Sales Tax (QST), and source deductions for employees.

  1. Corporate Tax Return: Every business, whether incorporated or not, is obligated to file an annual corporate tax return. The filing deadline is typically within six months from the year-end date. Incorporated businesses must adhere to specific deadlines, with variations based on the nature of the income.

  2. Goods and Services Tax (GST) and Quebec Sales Tax (QST): Businesses with annual revenues exceeding the specified threshold are required to register for GST and possibly QST. Once registered, they must remit these taxes to the Canada Revenue Agency (CRA). The frequency of remittance—monthly, quarterly, or annually—depends on the business’s sales volume.

  3. Source Deductions for Employees: If a business has employees, it is responsible for withholding and remitting source deductions, including income tax, Canada Pension Plan (CPP), and Employment Insurance (EI). Businesses must accurately report these deductions to the CRA and remit the withheld amounts on a regular basis.

  4. Quebec Tax Return (for Businesses Registered in Quebec): For businesses operating in Quebec, an additional requirement is filing the Quebec tax return. This return is separate from the federal corporate tax return and must be submitted to Revenu Québec.

The CRA can see the contents of your bank account. The CRA regularly puts accounts with seemingly unscrupulous activity under their microscope. They are on the lookout for penalty-worthy offenses, such as over-contributing to a TFSA or undeclared income.

 

Our team at Mackisen specializes in R&D finance and can guide you through the process of accessing subsidies. Eligibility criteria vary, but we work closely with you to determine your qualification and optimize benefits.

Yes, if your business operates as a sole proprietorship or partnership, you utilize the same income tax return for both personal and business taxes, filing through the T1 income tax form. On the other hand, if your business is structured as a corporation, you are required to file a separate T2 corporate income tax return for the business.