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ESPG Tax Tips
Starting in 2014 for corporations, new Schedule 88 – Internet Business Activities – has been initiated by CRA’s Compliance Programs Branch. The information to be submitted is intended to fill a hole in the information currently available to CRA regarding a corporation’s business activities conducted over the internet. A similar information requirement has also been introduced for individuals as part of the 2013 T1 Income Tax and Benefit Return (i.e., the information is requested on form T2125, Statement of Business or Professional Activities). The overall intent of the new sch…
Income By Salary Or Dividends
If you run a business, there are two ways that you can pay yourself – through personal salary or dividends. Either way, you are going to have to pay taxes on that income. However, there are different tax rates for these different forms of income. So, you might be wondering, which form of income might allow you to defer or save some money in the long run? Alternatively, you may have some personal objectives, and deferring or saving taxes is not on the table. Below I discuss the pro and cons on each type of income. Dividends There are some benefits to using dividends as a form of income…
About to be Audited or Recently Been Reassessed?
A tax audit is NOT to be taken lightly. The Canada Revenue Agency (CRA) has well trained, specialized tax auditors. Unless you’re an expert in tax, you’re taking far too much risk trying to navigate the audit process without real help. A bad tax audit can result in a substantial balance owing, plus penalties and interest and even criminal charges that could potentially result in bankruptcy. At MCO Partners, we’re experienced in all aspects of dealing with CRA. Whether it’s early in the audit process, or after you’ve been reassessed, we can help you. We can explain the AUDIT PROCESS t…