Is it Ever TOO Late to File Taxes?

Whether you owe money to the government, or are expected a refund on your taxes, it can be too late to file your taxes. The deadline for filing taxes in Canada is April 30th. If that date falls on the weekend it is then moved to the next business day. While you can file your taxes any time throughout the year, there are certain consequences for filing late. These consequences depend entirely on whether or not you owe taxes to the CRA (Canada Revenue Agency) or if the CRA owes you a refund. Either way, filing late can cause serious ...Read More

Is There a Penalty for Filing Taxes Late if You Owe Nothing?

In Canada, there are no fees or penalties if you file your taxes late - as long as you don’t owe anything. The main consequence of filing late when you owe nothing is a delay in receiving any returns you are owed. The CRA (Canada Revenue Agency) simply holds your refund until you do file. Filing late may also cause delays with spouses and common-law partners in which the calculation of a tax refund depends on information from your return. Also, if you receive benefit payments, such as the Canada Child Tax Benefit or the Working Income Tax Benefit, your ...Read More

What’s Best For Business Owners: Salary or Dividends?

If you have chosen to set up your small business as a Canadian corporation, you have a couple of options when it comes time to pay yourself and any other company shareholders. You can choose to pay yourself a salary, receive dividends, or a opt for a combination of both. There’s no simple answer, so join Liu & Associates as we discuss the pros and cons of each option. Business Salary If you’re paying yourself a salary, the payments become an expense of the business. You’ll receive a personal income, and get a T4 at the end of the tax ...Read More

How To Work With The CRA To File Tax Returns From Previous Years

Whatever the reason may be, sometimes people fail to file their tax returns on time, or in some extreme circumstances, ever! Failure to submit your tax return can have some nasty consequences, including hefty fines and penalties. If you find yourself in this situation know that not all hope is lost; the good news is that there is a way to file tax returns from previous years in Canada. However, how you handle the situation will depend on your circumstances. Read on to learn about what options you have if you need to file tax returns from previous years. Scenario ...Read More

2019 Tax Changes: What To Expect

As 2019 comes into full swing, it’s bringing some tax changes with it that will have some big impacts on Canadians and small business owners. With income tax being the top expense for most Canadian families, it’s worth it to be aware of what’s going to change in 2019. Read on as Liu & Associates highlights a few of the major changes you’ll see in 2019 when it comes to your income taxes. Why Do Tax Rules Change? Taxes can change for a number of reasons. People often see changes to taxes when a new government comes into power, when ...Read More

How To Manage An Inheritance

Coming into a lump sum of money suddenly, be it big or small, can be jarring to say the least. A sizable inheritance can represent a life-changing opportunity, if managed properly. Follow these five tips to make sure you’re managing your money smart and effectively to keep you financially stable for years to come. 1. Take A Step Back Because an inheritance usually comes with a loss, it’s important for you take time to deal with your grief. You don’t want to be making any major financial decision when you’re in an emotional haze. The second thing you need to ...Read More

Employee Gift Giving 101: What Employers Need To Know

Whether it’s a staff holiday party, birthday celebration or just a year end gift, there are rules surrounding giving your employees gifts. Follow the rules, and both you and your employees will benefit on your tax return. Gifts that follow the guidelines set out by the Canada Revenue Agency (CRA) are not only tax deductible for you as the employer, but your employees won’t have to declare the cost of the gift as part of their taxable income. Don’t get dinged at tax time just because you were trying to recognize your employees. Read on to learn about the tax ...Read More

6 Financial Considerations When Growing Your Business

Taking the next step with your business can be just as vital to its success as your first day of operation. As any owner knows, finances are central to commercial viability-- but there is much to consider when growing your business. Keep reading for Liu & Associates’ introduction to the complex financial needs of business growth. #1: Does your business have the appropriate funding? Unless you have considerable savings or borrowing power, growing your business requires a considerable influx of capital. If you are searching for investors or elsewhere for funds, make sure they honour your values and share the ...Read More

COMPANION CREDIT: Can Pet Expenses be Tax Deductible?

Everyone thinks their pet is the best… and they are right! This is common knowledge for most animal lovers and owners, but can your animal companion actually earn you tax credits? The short answer is no: Bella, Fluffers or Mr. Pickles likely does not qualify, no matter how good they are at cuddling or looking cute. Still, there are some cases where a portion of buying, training or feeding an animal can be used as a deductible. Keep reading for Liu & Associates’ guide to some of these benefits! ANIMAL THERAPY OR SERVICE ANIMALS Usually listed under medical expenses on ...Read More

Family Trusts 101

One of the most common misconceptions people have about family trusts is that they’re only for incredibly well-off families. That couldn’t be further from the truth. Keep reading for our introduction to family trusts and how they can be beneficial to you! What is a family trust? A trust fund or family trust is a legal agreement two parties in regards to assets to be passed on. A trust can contain money, stocks, real estate, and/or other assets. There are three parties involved in establishing a trust fund: The settlor or trustor - this is the person or entity who ...Read More

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