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Here is a list of Eligible Business Expenses

Click on any expense below to be directed to Canada Revenue’s Website for indepth information on each expense

Forms and publications

E-services for Businesses

Our online services make it faster and easier to handle your company’s tax matters. You, your employee, or your representative can file, pay, and access detailed information about your tax accounts – all online, all at your fingertips. Save time – go online!

Select the online service built for you:

If you’re a business owner who files GST/HST, payroll, corporation income tax:
My Business Account - Register or Login

If you act on behalf of a business either as an employee or a representative:
Represent a Client - Register or Login

If you report your business income on a personal income tax return:
My Account - Register or Login

1. What is My Business Account?

My Business Account is a secure online portal that provides an opportunity to interact electronically with Canada Revenue Agency (CRA) on various business accounts. Business accounts include GST/HST (except for GST/HST accounts administered by Revenu Québec), payroll, corporation income taxes, excise taxes, excise duties, and more.

My Business Account is:

  • Convenient – 21 hours a day, 7 days a week (see Hours of service).
  • Easy to use – After registering, simply log in with your CRA user ID and password.
  • Fast – Up-to-the-minute information and transactions processed immediately.
  • Secure – The CRA user ID and password are used as part of the security.

2. Who can use My Business Account services?

Business owners (including partners, directors, and officers) can use My Business Account; while authorized representatives (including accountants and employees) can access these services through Represent a Client.

3. What can I do on My Business Account?

My Business Account offers a variety of online services for businesses. To view a list of the services available for businesses, go to: What can I do on My Business Account?

4. What do I need to access these services?

To get access, you will need:
  • your CRA user ID and password; and
  • a Business Number (BN) for which you are authorized to access.
You can now also login to My Account or My Business Account with a Sign-in Partner. This option allows you to login with a user ID and password that you may already have, such as for online banking. For more information see, Sign-in Partners Help and FAQs.
For step by step instructions to set-up your CRA user ID and password, go to: Registration process to access the CRA login services

 

One of the rewards is the charitable donation credit, which this year has a new “sister credit” you’ll want to know more about before year end.

Top tax rewards are received when gifts to your favorite registered charity are over $200. This results in a 29% federal tax credit. On gifts under $200, a 15% federal tax credit applies. In both cases, provincial tax credits are added to the federal tax credit. Spouses and common law partners are allowed to combine their individual charitable donations and report them on one tax return. This should be done on your 2013 tax return to ensure the maximum available tax credit for the family. But you may be tempted to give more this year, if you are a first time donor, as described below:

The New First Time Donor Tax Credit will be available in tax years 2013 to 2017. For taxpayers who have never claimed the donation tax credit or for those who have not done so for years after 2007, the donation tax credit will be increased from 15% to 40% for cash donations under $200 and from 29% to 54% for cash donations between $200 and $1,000. Note however, that where the spouse of the taxpayer made a claim after 2007, the taxpayer is not considered to be a first-time donor. The tax credit may otherwise be shared between spouses, but the maximum total donation eligible for the enhanced credit is $1,000.

But be cautious: receipts are required to make this claim. (See Distinguished Practices article in this issue of Knowledge Bureau Report.)

Thank you for visiting our website

****IMPORTANT ****

 

Are you responsible for your corporation’s debts?

As a shareholder of your corporation, you have limited
liability. In the strict sense, this means you and the other
shareholders are not responsible for the corporation’s
debts. However, limited liability may not always protect
you from creditors. For example, if a smaller, more closely
held corporation wants to borrow money from a bank or
other creditor, the creditor may ask for the shareholder’s
guarantee that the debt will be repaid. If you agree to this
condition, you will be personally liable for that debt if the
corporation does not pay it back.

Elimination of the Penny

Effective February 4, 2013, the Royal Mint will no longer distribute the one cent coin.  Cash transactions will be rounded to the nearest nickel, non-cash transactions are not affected. POS equipment may require reprogramming.

Instalment requirements

Generally, corporations have to pay their taxes in monthly or quarterly instalments.  An instalment payment is a partial payment of the total amount of tax payable for the year.

It is your responsibility to know if you must make instalments.  REVENUE CANADA will NOT contact you to inform you that you are required to make instalments.

After your corporate year end is filed with Revenue Canada you will receive a “Corporation Notice of Assessment”  Usually on page 2 you will find the “Summary of Assessment”.  If you have an amount assessed in the following areas you will need to make instalments.

  • Parts I, VI, VI.1, and XIII.1:
    • Part I – Tax on income;
    • Part VI – Tax on capital of financial institutions;
    • Part VI.1 – Tax on corporations paying dividends on taxable preferred shares;
    • Part XIII.1 – Additional tax on authorized foreign banks;
  • Part XII.1 – Tax on carved-out income; and
  • Part XII.3 – Tax on investment income of life insurers.

Form T2WS1    Calculating estimated tax payable and tax credits for 2011, can be used to calculate what you owe.

If you require further assistance please contact your accountant.

 

 

What is new with “My Business Account”?

Within the past year the CRA has added some new services to “My Business Account”. For example, the CRA has added a service that will allow you to view the status of a GST/HST return. Specifically, this service allows you to see the status, the filing period end and the date that GST/HST returns were filed and received by the CRA for the current and previous calendar years.

The CRA also announced that you can transfer a payment/credit from one interim period to another interim period within the same account, except for payroll, or pay a balance owing in “My Business Account”.

Beginning this year the CRA will be rolling out a pilot project called electronic transfer of
accounting data (ETAD). Under this system, an auditor will call a taxpayer otherwise selected for audit and offer the possibility of sending in electronic records through “My Business Account”. The auditor will provide a case number to the taxpayer to be entered on the ETAD screen in “My Business Account” to allow the transmission of his/ her data. The taxpayer will receive a confirmation page when the file is successfully transmitted.

The CRA promises that a few more changes will be coming down the pipeline. “My Business Account” will be further enhanced and will soon provide you with the ability to:

  • View interest transactions;
  • Receive electronic notifications;
  • View/update business activity;
  • View owner information; and
  • View Pensionable and Insurable Earnings Review (PIER) list.

Breaking News – Posted July 8, 2010

Simplified Auto Log Requirements Confirmed By Government

At long last, an announcement has been made by The Honourable Keith Ashfield confirming a new simplified logbook requirement has been introduced for expenses incurred for motor vehicle use. The change is part of the strategy announced in the 2008 Federal Budget for assisting small and medium sized businesses with tax compliance.

As indicated in the Federal Budget documents, one of the intentions of the initiative was to reduce the recordkeeping burden for taxpayers who claim automobile expenses. As was announced at that time, “To reduce the record-keeping burden and allow small business owners more time to devote to growing their firms, Budget 2008 proposes that maintaining a logbook during a sample period of time, that is representative of how the motor vehicle is used, be sufficient to support motor vehicle expense and taxable benefit calculations.

The revised administrative policy that has been introduced allows businesses to maintain a logbook for an entire year, starting in 2009, in order to establish the use of a motor vehicle for business purposes. The logbook should be maintained for the entire year in order to establish a base year. After the base year has been established, a logbook can be kept by the taxpayer for a continuous three month period, which can then be used to calculate the business use for the entire year. The sample logbook would require the vehicle’s business use to be within a 10% range of the base year’s calculated annual business use.

Care should be taken in the year that the vehicle is purchased or leased as there are limitations based on the type of vehicle purchased and amounts that can be claimed for tax purposes.