Does Paying My Taxes Late Affect My Credit Score?

It's no secret that paying your taxes late comes with consequences including interest and penalties that could negatively affect your finances. But will these consequences affect your credit score? It's easy to assume that any money owing and debts will be held against your credit score. However, when it comes to late taxes, it works a little differently: Does the CRA Report to Canada's Credit Bureaus? In general, the Canada Revenue Agency will not report to Canada's Credit Bureaus if you owe a small amount in income taxes, paid your taxes late or received any basic penalties. Because of the ...Read More

COVID-19 Canadian Tax Information

With the recent changes due to COVID-19, many clients and small businesses are feeling financial pressure.  Please know we are deemed an essential service and will continue to serve you.  If you are affected financially by this pandemic, Liu & Associates is here to help. To help ease financial burdens of taxpayers and small businesses, the Government of Canada is providing options to defer tax payments and is extending the tax deadline.  Read more about financial help for Canadians affected by COVID-19; a hub of benefits the federal government, provinces and territories are offering to people financially affected by the ...Read More

The Benefits of Taking a QuickBooks Training Course

Your business may be small but, even if you don't feel you need a CPA (Certified Public Accountant), you do need to keep accurate financial records. This task can be overwhelming but it is vital to the success of your business. Luckily, there is accounting software available to help small business owners manage their finances as well as many other aspects of business. Liu & Associates understands the value of being able to take care of business matters. Because of this, they recommend and offer training for an amazing accounting program called QuickBooks. What is QuickBooks? QuickBooks is accounting software ...Read More

New Guidance for COVID Programs

As we are striving to bring you up to date information as quickly as possible, we are now providing you with further guidance from the www.Canada.ca site for COVID programs and benefits in relation to the Canada Emergency Response Benefit (CERB). For those individuals who have received non-eligible dividends from corporations in which they held shares as the means of remuneration, the Questions and Answers section of the CERB application has been updated to address the qualification of this type of income in the application for CERB. Please note that non-eligible dividends are indicated in box 10 of any T5’s ...Read More

What Do I Do After Declaring Personal Bankruptcy?

Did you know that the average Canadian household owes close to $1.78 for every dollar earned? It's no wonder debt is a financial issue for Canadians, with many of them facing owing amounts so high that there is no hope of paying it off. If you find yourself in this type of financial crisis, bankruptcy is an option for clearing your debts. However, it comes with certain obligations you are expected to fulfill. What is Bankruptcy? Bankruptcy is a legal process for individuals who seek relief from some or all debts when they cannot repay these debts to creditors. Filing ...Read More

New COVID-19 Protocols

With the COVID-19 Pandemic is having unforeseen implications on Canadian taxes, we will be exercising extra precautions for the safety of our clients and staff. To do our part to fight the COVID-19 Pandemic, our office is now working remotely.  Although we are no longer in our offices, our admin staff, partners and accountants are still working to provide services to you in a timely manner, as seamlessly as possible. However, please expect that there could be some minor changes to how we provide our service here are some of these changes: we will keep in touch with you via ...Read More

COVID-19 Tax Implications

The team at Liu and Associates LLP want to assure you we are closely monitoring the COVID-19 situation and recognize it is truly a global crisis and is constantly changing. This is an unprecedented time for all of us, and we feel the need for everyone to work together to weather this storm. We want you to know you have our commitment to continue providing you with the services you depend on, including up to date economic information. You are not alone; we are in this together. So, how are we working together to support each other? Health & Safety ...Read More

How Incorporating Your Business Can Affect Your Taxes

You own a small business and you’re ready to take it the next level. Incorporating your business carries many benefits including easier access to capital, enhancing your business’s credibility and creating an enduring legal business structure. It also provides protection from personal liability, meaning that you can safely separate your personal assets from the business. Does this mean you can protect your personal taxes as well? Read on to learn how you can avoid having your taxes negatively affected by your business’s activities as well as tax benefits from incorporating and how to file your corporate income tax return: What ...Read More

When Do I Need to Report Rental Income?

Renting property seems like a lucrative entrepreneurial opportunity as more and more individuals are renting out portions of their home and even offering space through popular accommodation services such as Airbnb. Acquiring rental income is a great way to offset the cost of a mortgage or justify an investment in a secondary property. However, if you are renting your property to a third party, you are required to report your rental income on your tax return. While it may be tempting to not disclose this income to the CRA (Canada Revenue Agency), not doing so can lead not only to ...Read More

Does Declaring Corporate Bankruptcy Affect Me or My Credit?

Bankruptcy may seem like a golden ticket when you are looking at clearing debts from your creditors – but there are many things to think about before you file for bankruptcy, especially if you are doing so for your corporation. One such concern is whether or not declaring corporate bankruptcy will affect your personal credit. When it comes to owning a corporation, as opposed to a sole-proprietorship or partnership, you are not legally responsible for business debts. However, there are exceptions for which you can be personally liable. Before explaining these exceptions, it’s best to understand the difference between corporate ...Read More