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2016 Federal Budget – Corporate Class Funds

Call us at 514-954-9031
Call us at 514-954-9031

2016 Federal Budget

If you hold a corporate class mutual fund, or plan to purchase one, we want to make sure you’re aware of an upcoming change that could affect you. The 2016 federal budget includes a change to all corporate class funds that eliminates the ability to switch between different classes of shares within a mutual fund corporation without triggering a capital gain or loss, effective October 1, 2016.

Do you have to file a Canadian return

Do you have to file a Canadian return

  • You must file a return for 2015 if any of the following situations apply:
  • You have to pay tax for 2015.
  • You have received a request to file a return for 2015.
  • You and your spouse or common-law partner elected to split pension income for 2015.
  • You received working income tax benefit (WITB) advance payments in 2015.
  • You disposed of capital property in 2015 (for example, if you sold real estate or shares) or you realized a taxable capital gain (for example, if a mutual fund or trust attributed income to you, or you are reporting a capital gains reserve you claimed on your 2014 return).
  • You have to repay any of your old age security or employment insurance benefits.
  • You have not repaid all amounts withdrawn from your registered retirement savings plan (RRSP) under the Home Buyers’ Plan or the Lifelong Learning Plan.
  • You have to contribute to the Canada Pension Plan (CPP). This can apply if for 2015 the total of your net self-employment income and pensionable employment income is more than $3,500.
  • You are paying employment insurance premiums on self-employment and other eligible earnings.

Even if none of these requirements apply, you can file a return for other reasons:

2015 Do you need to file a Canadian Tax Return

About Expert Fiscaliste

Save Your Tax
Contact Expert Fiscaliste

Expert Fiscaliste provides Canadian and international income tax preparation and consulting services to individuals, businesses, and trusts.

If you want to take advantage of our services for your tax return.  Give us a call at 514-954-9031, or visit our Contact Tax Experts page.

Pre-authorized debit (PAD) agreement with CRA

Pre-authorized debit (PAD) agreement with CRA

CRA now allows tax return preparers to electronically transmit PAD agreements to authorize CRA to debit a predetermined amount directly in a taxpayers bank account, at a specified date, to pay the income tax of this taxpayer.  To transmit a PAD agreement, complete Part F, “Pre-authorized debit agreement”, of Form T183.

T183

About Expert Fiscaliste

Save Your Tax
Contact Expert Fiscaliste

Expert Fiscaliste provides Canadian and international income tax preparation and consulting services to individuals, businesses, and trusts.

If you want to take advantage of our services for your tax return.  Give us a call at 514-954-9031, or visit our Contact Tax Experts page.

2015 CRA tax returns deadline

Tax Return deadline for the 2015 tax return

Generally, your return for 2015 has to be filed on or before April 30, 2016.  For the 2015 taxation year April 30th due date falls on a Saturday, and CRA will consider your return to be filed on time if we receive it or it is postmarked on the next business day or May 2, 2016.

Self-employed persons

If you or your spouse or common-law partner carried on a business in 2015 has to be filed on or before June 15, 2016. However, if you have a balance owing for 2015, you have to pay it on or before April 30, 2016.

Filing Late Tax Returns & Penalties

Interest

If you have a balance owing for the year, you are charged compound daily interest starting May 1 on any unpaid amounts owing. This includes any balance owing if your return is reassessed. In addition, you will be charged interest on the penalties starting the day after your return is due. The rate of interest you are charged can change every three months. If you have amounts owing from previous years, they will continue to charge compound daily interest on those amounts. Payments you make are first applied to amounts owing from previous years.

Late-filing penalty

If you owe tax and do not file your return on time, you will be charged a late-filing penalty. The penalty is 5% of your current tax year balance owing, plus 1% of your balance owing for each full month that your return is late, to a maximum of 12 months.
If you were charged a late-filing penalty on your return for any of the previous three years your late-filing penalty for this year may be 10% of your current tax year balance

About Expert Fiscaliste

Save Your Tax
Contact Expert Fiscaliste

Expert Fiscaliste provides Canadian and international income tax preparation and consulting services to individuals, businesses, and trusts.

If you want to take advantage of our services for your tax return.  Give us a call at 514-954-9031, or visit our Contact Tax Experts page.

2015 IRS Tax Returns

2015 IRS Tax Returns

Need more time to prepare your US federal tax return?

April 18 is the deadline for most to pay taxes owed and avoid penalty and interest charges.

If you cannot file by April 18th 2016, apply for an extension of time to file. Please be aware that an extension of time to file your return does not grant you any extension of time to pay your taxes.

Fore more information see the attached form: f4868

About Expert Fiscaliste

Save Your Tax
Contact Expert Fiscaliste

Expert Fiscaliste provides Canadian and international income tax preparation and consulting services to individuals, businesses, and trusts.

If you want to take advantage of our services for your tax return.  Give us a call at 514-954-9031, or visit our Contact Tax Experts page.

2016-2017 Federal Budget

2016-2017 Federal Budget


March 22, 2016 – Ottawa, Ontario – Department of Finance

The Minister of Finance, Bill Morneau, today tabled the new Government of Canada’s first federal budget.

Here are some highlights:

TAX MEASURES FOR INDIVIDUALS

  • Canada Child Benefit: New monthly tax-free payments starts July 1 to replace UCCB and other tax measures: up to $6,400 a year per child under 6, and $5,400 those aged 6 to 18. But this amount begins to claw back for households with an income over $30,000 and is eliminated entirely for incomes over $190,000.
  • Tax credits:Children’s arts and fitness tax credits phased out by end of 2017. But teachers get a $150 credit for teaching materials.
  • Elimination of Education and Textbook Tax Credits to eliminate the education and textbook tax credits, while leaving the tuition tax credit in place. Other income tax provisions that rely on eligibility for the education tax credit would be unaffected by the elimination of the credit effective January 1, 2017.
  • EI: Changes make it easier to qualify for benefits, and extends benefits for workers in 12 hard-hit regions. Plus: a bigger-than-expected cut in EI premiums next January.
  • Student grants: Increased 50%, to $3,000 for low-income and $1,200 for middle-income students.
  • Seniors: Guaranteed Income Supplement increased by up to $947 annually.

Addition Links:

http://www.budget.gc.ca/2016/docs/plan/toc-tdm-en.html

http://www.budget.gc.ca/2016/docs/plan/toc-tdm-fr.html

About Expert Fiscaliste

Save Your Tax
Contact Expert Fiscaliste

Expert Fiscaliste provides Canadian and international income tax preparation and consulting services to individuals, businesses, and trusts.

If you want to take advantage of our services for your tax return.  Give us a call at 514-954-9031, or visit our Contact Tax Experts page.

Uniforms and special clothing

Uniforms and special clothing

The cost of special clothing or footwear required for your job is not deductible.  However, special clothing or footwear provided by or reimbursed by the employer will not be considered a taxable benefit to the employee under certain circumstances:

When the employer provides a distinctive uniform, or protective clothing or footwear that is designed to protect them from workplace hazards, this is not a taxable benefit.

  • If the employer pays an allowance to the employee for purchasing these items, and the employee is required to provide receipts, this is not a taxable benefit.
  • If an allowance is paid to the employee for the purchase of protective clothing, and the employee is not required to provide receipts, the amount paid will be a taxable benefit to the employee unless all of the following conditions are met:
    • the law requires the employee to wear the protective clothing on the work site,
    • the employee purchased the protective clothing, and
    • the amount paid is reasonable.

Links:

http://www.cra-arc.gc.ca/tx/bsnss/tpcs/pyrll/bnfts/prvdd/clthng-eng.html

http://www.cra-arc.gc.ca/E/pub/tg/t4130/README.html

About Expert Fiscaliste

Save Your Tax
Contact Expert Fiscaliste

Expert Fiscaliste provides Canadian and international income tax preparation and consulting services to individuals, businesses, and trusts.

If you want to take advantage of our services for your tax return.  Give us a call at 514-954-9031, or visit our Contact Tax Experts page.

2016-2017 Quebec Budget

2016-2017 Quebec Budget

QUEBEC – Finance Minister Carlos Leitao tabled Quebec’s 2016-17 budget on Thursday.  Here are some highlights:

Tax measures for individuals

  • The budget announced changes to the plan to reduce the health contribution so that it will be entirely eliminated for all taxpayers in 2018
  • The budget has announced the creation of a new refundable tax credit called “RénoVert”.
  • Starting in 2016, the refundable tax credit related to the work premium will be increased for households without children
  • As of 2016, the limits on donations eligible for the tax credit for donations will be eliminated and, as of 2017, the tax credit for individuals whose marginal tax rate is greater than 24% will be enhanced.
  • As of 2018, the age of eligibility for the tax credit for experienced workers will be 62 years.

LINK: http://www.budget.finances.gouv.qc.ca/budget/2016-2017/index_en.asp

About Expert Fiscaliste

Save Your Tax
Contact Expert Fiscaliste

Expert Fiscaliste provides Canadian and international income tax preparation and consulting services to individuals, businesses, and trusts.

If you want to take advantage of our services for your tax return.  Give us a call at 514-954-9031, or visit our Contact Tax Experts page.

2015 Check List

2015 Check List

Tax Returns can be complicated and extremely time consuming.  Tax payers can be particularly challenged and stressed in knowing what information is required in compiling a tax return.   Here our PDF check list to help you prepare the documents that you will need for your 2015 tax return. 2015 Individual Tax Return Checklist

About Expert Fiscaliste

Save Your Tax
Contact Expert Fiscaliste
Expert Fiscaliste provides Canadian and international income tax preparation and consulting services to individuals, businesses, and trusts. If you want to take advantage of our services for your tax return.  Give us a call at 514-954-9031, or visit our Contact Tax Experts page.

2016 Federal Tax Rates

2016 Federal Tax Rates

2016 Federal Tax Brackets • 15% on the first $45,282 of taxable income, + • 20.5% on the next $45,281 of taxable income (on the portion of taxable income over $45,282 up to $90,563), + • 26% on the next $49,825 of taxable income (on the portion of taxable income over $90,563 up to $140,388), + • 29% on the next $59,612 of taxable income (on the portion of taxable income over $140,388 up to $200,000), + • 33% of taxable income over $200,000. Link to our PDF version 2016 Federal Tax Brackets

About Expert Fiscaliste

Save Your Tax
Contact Expert Fiscaliste
Expert Fiscaliste provides Canadian and international income tax preparation and consulting services to individuals, businesses, and trusts. If you want to take advantage of our services for your tax return.  Give us a call at 514-954-9031, or visit our Contact Tax Experts page.
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