How to Deal With Tax Collection Actions

Owing money to the Canada Revenue Agency (CRA) is not like owing money to any other debt or creditor. The CRA and its Collections Department is empowered by laws to collect on your debt. This means they negotiate differently than other creditors - they have the means to be more aggressive when working out a payment plan. Each year after you file your taxes, the CRA sends a Notice of Assessment detailing the information of your return. If you owe money on that return, you have 30 days from the time of the assessment to pay the amount owing. The ...Read More

Are Vehicle Expenses Tax Deductible?

If you use your vehicle for any reason related to employment and work, you may be missing out on vehicle expense deductions you can claim when you file your taxes. While it may not be possible to claim the entirety of your vehicle, there are certain factors you can consider to see if your vehicle expenses are eligible for tax deductions. Are my vehicle expenses tax deductible? Some vehicle expenses are tax deductible in Canada as long as you meet certain requirements. Either you must use your own personal vehicle for employment-related purposes or be responsible for expenses related to ...Read More

Are There Any Tax Implications for an Inheritance in Canada?

In some countries, inheritance taxes are imposed upon an amount inherited by a person from someone who has died. That person is responsible for paying tax on whatever they receive. Fortunately for us in Canada, inheritance taxes do not exist when it comes to receiving an inheritance from a loved one. Instead, the estate of the deceased pays the taxes before any money or value is transferred to the beneficiary. This means that, in the end, the beneficiary should not have to worry about taxes. While this may reduce the initial value of the estate, it certainly provides peace of ...Read More

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

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