Category Archives: Article

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Personal Real Estate Corporations (PRECs) – Four Tax Strategies

Ontario real estate professionals can now incorporate, thanks to the passing of Bill 145 this past March and legislation passing on October 1, 2020. First—and likely most important—is to understand the tax benefits of incorporation. Of course, once you withdraw funds from a PREC, that money is subject to your personal tax rate. Fortunately, with […]

Discussion with a real estate agent

Personal Real Estate Corporations (PRECs) in Ontario

Being a realtor in Ontario means many things. You are selling in one of the most fast-paced and lucrative realty markets in North America! You are selling in an economic climate that has exceeded any predictions and is growing. As is the case with many of your colleagues, you are inundated with data, paper, and […]

taxpayer

Taxpayer Bill of Rights and Taxpayers’ Ombudsman Analysis

Office of the Taxpayers’ Ombudsman Canadian taxpayers have formal rights that have been set out in the CRA Taxpayer Bill of Rights. To help enforce these rights the Office of the Taxpayers’ Ombudsman was established in 2008 and operates independently from the CRA. Its mandate is to uphold the Taxpayer Bill of Rights and to […]

Limits on CRA Collections – GST-HST

Limits on CRA Collections – GST/HST

Introduction – GST/HST Limits on CRA Collections Canada’s Excise Tax Act gives sweeping powers to the Canada Revenue Agency (“CRA”), and by extension its tax collection officers, to collect the tax debts of taxpayers. In many cases, taxpayers are taken by surprise when their bank accounts are frozen, assets liened or seized and wages garnisheed. […]

Condo and Home Flippers

Condo and Home Flippers

In recent years, the Canada Revenue Agency (the “CRA”) has become more critical of real estate transactions claiming tax non-compliance has contributed to increasing housing prices. One category of transactions the CRA is examining more closely is condo and home flipping. CRA has had a condo/home flipping audit project for several years. CRA routinely contact […]

Zero-rated-and-Exempt-Supplies

Zero-rated and Exempt Supplies for GST/HST

Introduction – Zero-rated vs. Exempt Supplies There are three main classifications of supplies in the Excise Tax Act: taxable supplies, zero-rated supplies and exempt supplies. “Supply” for the purposes of GST/HST refers to products or services that are produced by businesses and provided to end users by any means whatsoever, in other words sales of […]

tax partners - Net worth audit

Net Worth Audit and Assessment

A normal income tax audit can be an intimidating and costly process for a taxpayer. Taxpayers who carry on a business, particularly one that deals in cash, may be surprised to know that the Canada Revenue Agency (“CRA”) has a number of methods that it can employ to reassess taxpayers, not all of which rely […]

Principal-Residence-Exemption-from-Canadian-Capital-Gains-Tax

Principal Residence Exemption from Canadian Capital Gains Tax

A taxpayer who sells his or her “principle residence”, which is defined in the ITA, becomes liable for paying tax on the capital gains. However, the Income Tax Act (“ITA”) allows the taxpayer to claim an exemption, thereby avoiding the payment of tax on the sale of the “principle residence”. “Principle residence” generally includes: A […]

Taxpartner News

When to Incorporate Your Business

Guidance from Tax Partners Accountants: a York Region accounting firm specializing in privately-held and owner-managed businesses. There is one question that is often top of mind when we speak with entrepreneurs who come to Tax Partners for business advisory. That question is: “Should I incorporate my business?” If you are a small business owner confronted with […]