While most Canadians are aware of the April 30 personal income tax filing deadline. There are other important tax deadlines that must be observed over the course of the year. This is especially if you want to take advantage of certain tax deductions and credits. This calendar summarizes several important dates on the tax calendar and offers some tips to help you with your overall tax planning. Where a deadline falls on a weekend or a holiday recognized by the Canada Revenue Agency (“CRA”), the deadline is generally extended to the next business day
Expert Fiscaliste’s Tax Calendar is neither a comprehensive review of the subject matter covered nor a substitute for specific professional tax advice. The tax dates discussed in this publication may or may not be appropriate for you. We encourage you to consult with an independent tax professional to confirm the relevant deadlines and the anticipated implications to your particular situation (with respect to the current tax legislation).
About 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 certain deadlines in your 2018 Tax Return. Give us a call at 514-954-9031, or visit our Contact Tax Experts page.
Pension income splitting, works because “progressive” tax system, in which the applicable tax rate goes up as income rises. For 2018, the federal tax rate of 15% is applied to about the first $47,000 of taxable income. The next tax rate is 20.5% applied to the next $46,000 of taxable income. A couple could split their income take advantage of the lower rates. In addition, both members could take advantage of the pension tax credit.
Over the age of 65.
Income tax is a big-ticket item for most retired Canadians. Especially for those over 65 the annual tax bill may be your single biggest expenditure. The Canadian tax system provides a number of tax deductions and credits available to those over the age of 65. Like the age credit or the pension income credit, splitting pension can minimize the tax burden.
Tax Saving Strategy
Pension Splitting is another income tax saving strategy which is not nearly as well-known. The fact that the benefits of this strategy aren’t readily apparent from either the tax return form. Ask your professional tax planning or tax return preparation expert how much can you save in tax.
About 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 pension splitting in your 2018 Tax Return. Give us a call at 514-954-9031, or visit our Contact Tax Experts page.
Most of the Automobile Deduction Limits and Expense Benefit Rates that applied in 2018 will continue to apply in 2019. With two changes taking effect as of 2019:
The limit on the deduction of tax-exempt allowances
These are tax-exempt allowance paid by employers to employees who use their personal vehicle for business purposes. 2019 the rate will be increased by 3 cents to 58 cents per kilometre for the first 5,000 kilometres driven. In excess of 5000 kilometers 52 cents will be used.
Northwest Territories, Nunavut and Yukon, the tax-exempt allowance is 4 cents higher. For 2019, 62 cents per kilometre for the first 5,000 kilometres driven. In excess of 5000 kilometers 56 cents will be used.
These allowances are intended to reflect the main costs of owning and operating an automobile. Operating costs include depreciation, financing, insurance, maintenance, and fuel.
General Prescribed Taxable Benefit Rate
The general prescribed rate that is used to determine the taxable benefit of employees relating to the personal portion of automobile operating expenses paid by their employers will be increased by 2 cents to 28 cents per kilometre.
For taxpayers who are employed principally in selling or leasing automobiles the prescribed rate will be increased by 2 cents to 25 cents per kilometre.
The amount of this benefit is intended to reflect the costs of operating an automobile. The additional benefit of having an employer-provided vehicle available for personal use (i.e., the automobile standby charge) is calculated separately based on capital costs and is also included in the employee’s income.
The following limits from 2018 will remain in place for 2019:
Ceiling on the capital cost of passenger vehicles for capital cost allowance (CCA) purposes will remain at $30,000. The ceiling is before applicable federal and provincial-territorial sales taxes for purchases after 2018. This ceiling restricts the cost of a vehicle on which CCA may be claimed for business purposes.
Maximum allowable interest deduction for amounts borrowed to purchase an automobile will remain at $300 per month.
Limit on deductible leasing costs will remain at $800 per month. Plus applicable federal and provincial-territorial sales taxes for leases entered into after 2018. This limit is one of two restrictions on the deduction of automobile lease payments. A separate restriction prorates deductible lease costs where the value of the vehicle exceeds the capital cost ceiling.
About Expert Fiscaliste
Expert Fiscaliste provides Canadian and international income tax preparation and consulting services to individuals, businesses, and trusts. If use a automobile for business for business you maybe interested in our services call us at 514-954-9031, or visit our Contact Tax Experts page.
Canada Child Benefit increased two years ahead of schedule
Quick facts
Across Canada, CCB payments worth $23.7 billion benefit nearly 3.7 million Canadian families.
Over 870,000 families in Quebec received nearly $5.5 billion from the CCB in the 2017–18 benefit year.
The CCB has helped lift more than half a million people—including 300,000 children—out of poverty.
The CCB will now have a maximum annual benefit of $6,496 per child under age 6 and $5,481 per child aged 6 through 17 years.
Examples:
For a single parent earning $35,000 with two children, the accelerated indexation of the CCB will contribute nearly $600 towards the increasing costs of raising their children for the 2019–20 benefit year.
A single working parent who has two children (one child under 6 and one child aged 6–17) and who earns $30,000 a year receives almost $12,000 in benefits for the 2018–19 benefit year. This is about $3,000 more than they would have received under the previous system of child benefits.
About Expert Fiscaliste
Expert Fiscaliste provides Canadian and international income tax preparation and consulting services to individuals, businesses, and trusts. If you are interested in our services call us at 514-954-9031, or visit our Contact Tax Experts page.
The digital age has conditioned clients to expect more instant gratification. Offering clients on-demand access to their own files via a business portal provide many benefits to our clients.
Studies show that satisfied clients are twice as likely to have the capability to share data with their firm using a self‑service business portal.
Secure Business Portal
The Expert Fiscaliste Business portal is a secure access point for better management of your tax documents. Built to ensure client confidentiality with first class encryption security.
Business Portals Support Client Experience
Communication and Collaboration
Expert Fiscaliste Business Portal Benefits clients by offering the on-demand service clients come to expect from their online interactions. Portals that are also accessible via a mobile app make Expert Fiscaliste even more responsive. Now, clients can request a file when it is convenient for them and it now doesn’t even have to be done during office hours. Clients can now sending a copy of a receipt or document is as simple as taking a photo.
Collecting Source Documents
One of the most common causes of delays in accounting firms are collecting source documents. Clients have a lot of different documents, and now our Business Portal Benefits clients by being able to uploading documents to the portal to save a lot of time, speed up the tax preparation process, and even save you money.
Delivering Final Documents
On the other end of the engagement, business portals are a great way to deliver completed documents. Clients can benefit by signing and uploading signed authorizations and Expert Fiscaliste can EFILE the final tax returns. Eliminating the delivery of paper documents and the supplies associated with them reduces costs by up to 30% and benefits the environment.
When any vehicle is used for both business and pleasure purposes, it is important to keep a Motor Vehicle – Trip log to identify the business use of each vehicle.
Trip Log
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When any vehicle is used for both business and pleasure purposes, it is important to keep a Motor Vehicle – Trip log to identify the business use of each vehicle.
All government agencies including the Internal Revenue Service (IRS) , Canada Revenue Agency (CRA), and Revenu Quebec (MRQ) state that keeping an accurate logbook of business travel maintained for an entire year is the best evidence you can have to support your motor vehicle expense claims.
A separate Motor Vehicle – Trip log should be kept for each vehicle which is driven for both business and personal use.
For the self-employed only the business portion of vehicle expenses can be deducted from income. GST/HST input tax credits are also related to the business use of a vehicle. For businesses which provide vehicles to employees trip logs substantiate the business use of a vehicle. Businesses must calculate the taxable benefit to employees based on the personal use of the vehicle.
Trip log records
The Motor Vehicle – Trip log should record the date of each business trip, destination, reason for the trip, and the kilometres driven. The odometer reading of the vehicle must also be recorded, at the beginning and end of each year, to determine the total kilometres driven in the fiscal period.
If you buy, sell or trade your vehicle during the year, be sure to record the odometer reading at that time
Quebec Supporting Documents for Vehicle
Mileage
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Revenu Quebec’s Keeping Business Records information, supporting documents that must be retained regarding automobile mileage include:
a statement of kilometres travelled for each vehicle used in part for business and in part for personal purposes documents substantiating trips.
Quebec’s Logbook article also discusses the use of a simplified logbook for individuals in business.
Revenu Quebec’s Logbook information an employee who makes use of an employer’s automobile must keep a detailed logbook. This logbook details of the trips made with the automobile.
Employees must provide their employer a copy of the logbook:
No later than January 10 of the year that follows the year
The 10th day following the day on which the automobile is returned to the employer
Business Use vs Personal Use of a Vehicle
Canada Revenue Agency’s Logbook is similar to Revenu Quebec and also discusses the use of a simplified logbook for individuals in business.
(i) Employees
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If an employee travels between home and work, the travel is normally considered personal use of the vehicle, unless there was a business matter attended to between the home and the place of work.
If an employee travels between (i.e., to and/or from) home and a customer’s place of work, the travel is normally considered business use.
If a self-employed person has a home office and another office or place of business, usually the office outside the home is considered the base of business. Travel between the home office and the base of business will normally be considered personal use of the vehicle.
Driving between (i.e., to and/or from) different premises of the same business would usually be considered business use.
Driving between the home office of a self-employed person and a customer’s place of work is considered business use, as is any other travel incurred for business purposes.
Expert Fiscaliste provides Canadian and international income tax preparation and consulting services to individuals, businesses, and trusts. If you are interested in our services call us at 514-954-9031, or visit our Contact Tax Experts page.
In order to maintain our commitment to provide you with efficient and professional services at all times. We invite you to review our modified schedule for Support and the Customer Service during the Holiday period.
Business Hours for the Holiday period (EST) – December 24, 2018: Closed – December 25, 2018: Closed – December 26, 2018: Closed – December 27, 2018: 8:30 a.m. to 5:00 p.m. (regular hours) – December 28, 2018: 8:30 a.m. to 5:00 p.m. (regular hours)
– December 31, 2018: 8:30 a.m. to 5:00 p.m. (regular hours) – January 1, 2019: Closed – January 2, 2019: Closed – January 3, 2019: 8:30 a.m. to 5:00 p.m. (regular hours) – January 4, 2019: 8:30 a.m. to 5:00 p.m. (regular hours)
During this Holiday period we encourage you to use Expert Fiscaliste electronic services. For more information visit our page contact us
Expert Fiscaliste thanks you for your loyalty. May the Holidays fill you with joy and the 2019 year bring you prosperity.
About Expert Fiscaliste
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.
To Appeal or Objection to notice of Assessment, you or your Authorized Representative must file a notice of objection. Typically, the bases for appeal are a disagreement with the assessment or a dispute over how the CRA has interpreted the income tax law.
You must file your notice of objection within one year from the filing deadline of the tax return in question, or 90 days of the CRA mailing your Notice of Assessment, whichever is later. You’ll need to explain why you disagree and include all relevant facts and documents.
If CRA agrees with you, either completely or partially, it will adjust your tax return and send you a revised Notice of Assessment. Otherwise, you’ll get written notice confirming the original tax assessment.
Professional Fees
Deduction for the fees you incurred for external professional advice or services, including consulting fees.
TaxPayers can deduct accounting and legal fees you incur to get advice and help with keeping your records. You can also deduct fees you incur for preparing and filing your income tax and GST/HST returns.
You can deduct accounting or legal fees you paid to have an objection or appeal prepared against an assessments. However, the full amount of these deductible fees must first be reduced by any reimbursement. If you received a reimbursement in the subsequent tax year add them in that year as other income.
You cannot deduct legal and other fees you incur to buy a capital property. Instead, add these fees to the cost of the property.
To the extent that assets have appreciated in value. There is likely capital gains that taxes have not yet been paid. These assets should generally be left to the spouse, or a qualifying spouse trust is an example of Importance of the Spouse as Beneficiary and good tax planning in the will. That way, the property “rolls over” to the spouse (or spouse trust) without immediate tax. Otherwise, the assets will usually be treated as if they had been liquidated at current market values.
It is generally recognized that everyone should make a will; it is, however, not always recognized that doing so can often be the occasion for tax planning the will.
About Expert Fiscaliste
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.
may contact you about your recently filed tax return. This is called a tax review — it is not the same as a tax audit they generally provide you with 30 days to comply. Failure to not meet this deadline may lead to an reassessment or tax audit if the CRA is not satisfied with your response to the review.
3 types of tax reviews
Pre-assessment review –After you submit your tax return, the CRA may review the deductions and credits you claimed. The CRA conducts these reviews before it sends you a notice of assessment and possibly a refund. These reviews usually take place between February and July.
Processing review program – This is similar to the pre-assessment review, except for timing. The CRA conducts these reviews after it sends you a notice of assessment, usually between June and November.
Matching program – These reviews take place after the CRA sends you a notice of assessment, usually between September and March. The CRA compares information on your tax return with information provided by third parties like your employer, banks or investment firms.
Authorized Representatives
514-954-9031
CRA Tax Review Letters take place at different times during the year. If you move, it is very important to notify your change in address as soon as possible. If you plan to be away for some time, or if you prefer you have your authorized representative to act on your behalf call us at 514-954-9031.
