By Anne Van Delst, CPA, CA, LPA Recessions, and even lesser economic downturns, can – and do – ruin once-thriving businesses overnight. While it’s true that economic hills and valleys are beyond the control of small and medium sized business owners, those overnight crashes are often the result of months or years of inadequate planning. […]
We are in the midst of a remarkable economic period. A few weeks ago, ‘inverted yield curves’ brought predictions of an impending recession. In September, the TSX reached a record high and unemployment levels hit historic lows. But warning signs and threats persist, including on-going trade wars, geopolitical tensions in the EU and Middle East, […]
By Wendy Wong, , CPA, CA Senior Manager, Tax & Advisory Services Vehicle expenses. It is one simple line on a tax return, but it can cause all sorts of problems if CRA decides to take a closer look. Recently, we have noticed CRA specifically targeting their reviews on car expenses claimed by a business […]
By Kody Wilson, CPA, CA, CBV, Partner No matter how you slice it, paying for college or university tuition is costly. A 2018 survey of 23,000 students by MacLeans Magazine put the average annual cost of college or university at close to $20,000. For families with young children, the cost will only get higher. A […]
Competition is tough for construction companies. There are contracts to be had but they are increasingly more difficult to win. To be competitive, and win those contracts, these are some basic financial questions that company owners should be asking themselves. What profit margin should I use to bid on the job? I want to keep […]
Determining whether you’re an employee or a contractor is a critical decision with important consequences for both the worker and payer (the company, employer or individual paying for the work). Employee or contractor? It might sound like an easy distinction to make, but it is not. This article covers both the factors CRA uses to determine the tax treatment, and the advantages and disadvantages for the individual in each circumstance.
There comes a time when owner-managed businesses can grow beyond the point where all aspects of the business are effectively manageable by the owner, and when hiring a competent financial controller starts to make sense.
Buying, renovating, and then renting (or selling) existing properties is a significant business. But, what many first-time investors or builders might not know is, “substantial renovations” to existing properties are not tax-free.
Passing an established business from one generation to the next is invariably difficult, especially when you add the complexity of family dynamics. So, how do you avoid the traps of failure during transition between generations? Unbiased, experienced external advisors can provide valuable advice because what they see happening with one family, they have likely seen happen to many others.
The last thing you want when you incorporate your business is for the Canada Revenue Agency (CRA) to label you a personal services business (PSB).
If CRA determines an incorporated individual working as a contractor is just an employee of the company they are working for, they would be deemed a PSB.
There are many advantages to incorporating, and despite the possible pitfalls, it may be beneficial for you to do so. But, it’s complicated and can be confusing. Talk to a tax specialist before you decide.