Introduction Managing rental properties can be rewarding, but it also comes with significant responsibilities, particularly in managing finances and understanding tax obligations. For landlords in Canada, it’s crucial to know which rental expenses can be claimed and how they should be reported. Below is a comprehensive guide to the types of current rental expenses and […]
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Dec
Introduction Understanding Canada’s tax system is essential for financial planning. Many Canadians are confused about their tax liabilities, especially when it comes to distinguishing between marginal tax rates and effective tax rates. This confusion sometimes leads individuals to mistakenly believe they could take home less money if a raise places them in a higher tax […]
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Dec
Introduction – Testamentary Freedom and Its Restrictions in Ontario In Spence v. BMO Trust Company, the Court of Appeal for Ontario affirmed an individual’s right to dispose of their property as they choose upon death. Similarly, the Supreme Court of Canada in Tataryn v. Tataryn Estate emphasized the significance of testamentary freedom but acknowledged its […]
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Dec
Introduction – What is a Tax Clearance Certificate? A Tax Clearance Certificate is a document issued by the Canada Revenue Agency (CRA) to the legal representative of a taxpayer. This certificate confirms that all income tax owing, including applicable interest and penalties, has been paid. Issued under subsection 159(2) of the Income Tax Act, a […]
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Dec
Introduction: Reporting Foreign Pension Income in Canada Many individuals who have had careers abroad before immigrating to Canada may be eligible to receive foreign pension income. However, Canadian residents are taxed on their worldwide income, including pensions from foreign sources. This often surprises new immigrants, especially when foreign pensions are non-taxable in the country of […]
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Introduction: Understanding the Voluntary Disclosure Program The Voluntary Disclosure Program (VDP), managed by the Canada Revenue Agency (CRA), offers taxpayers an opportunity to correct previously filed tax returns or disclose unreported income and assets without facing penalties or criminal prosecution. This program is particularly beneficial for taxpayers who unintentionally failed to comply with their tax […]
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Introduction: Reporting Worldwide Income for Canadian Tax Purposes Canadian residents are required to report their worldwide income from all sources on their income tax returns. Additionally, any offshore assets exceeding $100,000 must be disclosed using Form T1135. Non-compliance with these reporting requirements can lead to penalties, interest charges, and even potential prosecution for tax evasion. […]
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Dec
Unreported Offshore Assets: Understanding Your Obligations as a Canadian Resident Introduction: Reporting Offshore Assets as a Canadian Taxpayer Canada’s Income Tax Act requires Canadian residents to report all worldwide income on their tax returns, including offshore or foreign pension income. Two primary concerns arise for taxpayers with offshore assets: Determining Tax Residency: Was I a […]
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Dec
Introduction: Canadian Taxes and the Dark Web With the increasing availability of secure and anonymous internet platforms, a secretive layer of the web known as the “dark web” has evolved into a parallel marketplace. While widely associated with illicit activities such as drug trafficking, stolen data exchanges, and illegal firearms sales, the dark web is […]
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Dec
Introduction – International Tax Coalition Targeting Cryptocurrency In the summer of 2018, an international coalition of tax administrators—including the Canada Revenue Agency (CRA) and the United States Internal Revenue Service (IRS)—joined forces to address tax compliance in the cryptocurrency space. This initiative, aimed at exposing cryptocurrency users evading tax obligations, continues to expand. Since then, […]