Charitable, Corporate & Personal Tax Returns Mississauga, ON
We keep up to date with changes in Canadian tax legislation. Whether charitable, corporate or personal taxes, we are here to help. We also prepare HST returns.
Charitable Tax Tips
- File a complete return
- File your return within six months from the end of your charity’s fiscal year
- Include your Financial Statements with your return
- File your return even if your charity was inactive during its fiscal year
- Describe your charitable activities, not your fundraising activities, in Section C2
- Ensure charitable tax receipts have been issued for all donations.
- If a receipt is being issued for a non-cash gift, it must reflect the fair market value of the gift.
Corporate Tax Tips
- Keep accurate records Keep a separate file with articles of incorporation, minute book and other documents related to the foundation of the company
Be sure to have the supporting documents for all transactions, including: invoices; receipts; bank statements; deposit slips; agreements
- Get an HST Number If what you sell or provide is HST taxable, or zero-rated, register for HST promptly, even if your sales are below the threshold of $30,000; your corporation may be entitled to a HST refund
- Choose your Fiscal Year End wisely.According to CRA, the first tax year can be of any length, not exceeding 53 weeks.
The difference between filing for personal and corporate taxes is that personal tax is filed for the calendar year that is January 1 to December 31, and is due April 30.
The corporate tax return is filed for the 12 month period that is initially established and is due six months after the year end.
- Keep shareholder account accurate This is one of the areas that draws special attention of tax collectors as most tax avoidance cases involve withdrawing funds without withholding tax, as it is in case of regular payroll. From CRA's point of view, your net withdrawals from your corporation, is your income subject to tax. This income needs to be declared in T1 Personal Tax Return
- Separate your wealth from your tax and legal liabilities A corporation may be a bounty for someone who has an intention to sue and get some of it's assets. If you do a lot of business and accumulate funds and other assets over time, you might consider registering another company, to be designated as the holding corporation
- Plan for Salary or Dividends in advance If your business generates net income, you as an owner would probably withdraw all or part of it. You may decide to do that in form of salary or dividends. Salary is a tax deductible expense for the corporation, whereas dividends are not.
- File on time, stay on good record Fulfilling your obligations to the CRA is obviously a good business practice, keeping you more organized and ready for possible audits or inquiries. Knowing that your books are in order and having no reason to be worried about tax issues will lift a great weight from your shoulders, so you can focus on building your business.
The corporate tax return is due six months after the corporation's year-end, and any tax due is payable two months after fiscal year end.
PERSONAL TAX TIPS
The following are some of the changes that affect personal taxes in 2019 and 2020
- Employment Insurance (EI) Premiums are decreasing from 1.62% in 2019 to 1.58% in 2020.
- Maximum pensionable earnings are increasing to $58,700 in 2020, up from $57,400 in 2019.
- CPP Employee and employer contribution rates for 2019 will be increasing by 5.1% and 5.25% for 2020
- Canada Child Benefit will continue to be indexed to inflation. In 2020, the maximum a parent can receive is $6,639 for children under age 6 (up from $6,496 in 2019) and $5,602 for children ages 6 to 17 (up from $5,481 in 2019).
- TFSA annual contribution limit was upped by $6,000 in 2019 and In 2020 by another $6,000
- Canada Training Benefit This refundable tax credit is designed to lower the barrier to professional development and to provide financial support to help pay for half of the tuition and training fees. As a worker, you’ll be eligible to receive up to $250 annually as a tax credit.
- Home buyers Plan Effective March 19, 2019, those eligible to participate in the program can withdraw up to $35,000 from their RRSP, up from $25,000 in previous years. This means that a couple buying a home together could withdraw a combined $70,000 from their RRSPs to buy their first property.