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.
Although Snowbirds who own property in the United States might find relief from winter, it can produce unexpected financial and compliance headaches for those who don’t take the time to figure out the tax implications if they decide to sell or rent.
Monica Martinez, GGFL’s U.S. and cross-border tax principal, knows that it’s complicated and involves dealing with the U.S. Internal Revenue Service (IRS) and the Canada Revenue Agency (CRA). Her best advice: “Come and see us at GGFL. It is well worth it for the peace of mind.”
Personal taxation for families that operate a business through a Canadian Controlled Private Corporation has drastically changed since the announcement of the new Tax on Split Income (TOSI) rules for adults in July of 2017. Prior to the changes, a shareholder could receive unlimited dividends. However, under the new rules, it is very difficult to pay dividends to family members and have those dividends taxed at their marginal rates, unless they are working full-time in the business.
In December 2017, the U.S. introduced sweeping tax reforms that included the introduction of a new tax on international income called the “Global Intangible Low-Taxed Income” (GILTI).
Beginning in 2018, this tax would require U.S. shareholders of controlled foreign corporations (CFC) to include on their personal U.S. tax returns any income earned by the corporation in excess of a 10% return on the corporation’s tangible depreciable capital property. In future years, practitioners must carefully plan for the impact of this tax.
New corporate record requirements for federal companies – Register of Individuals with Significant Control
As of June 13, 2019, amendments to the Canada Business Corporation Act (CBCA) will impose more stringent recordkeeping requirements on federally incorporated businesses to improve corporate transparency and help combat money laundering.
Federal corporations will now be required to create and maintain a register of Individuals with Significant Control (ISC Register). The ISC Register must include information about individuals who own, control, or direct a significant number of shares of the corporation, or otherwise have significant influence over the corporation.
Young physicians at the beginning of their careers are well-versed in the workings of the human body, but usually have lots of basic questions when it comes to the fundamentals of running a business.
Claudia Rosianu, GGFL’s assurance and advisory services principal, specializes in physician finances and has the answers to these questions.
There are two things that employees dislike: Change and things that stay as they are. So said Future of Work author Eric Termuende, guest speaker at GGFL’s second annual Beyond the Numbers event, held at Dow’s Lake on May 22.
GGFL invited Termuende to give our business clients the opportunity to hear his views on how to address the talent shortage – a situation many employers consider to be a crisis.
The City of Ottawa remains in a state of emergency for floods. It is advising property owners to keep sandbag walls in place until further notice.
GGFL is now offering Audit Shield, a service designed to give fee protection to clients whose tax returns result in an audit, or other follow-up inquiry, from the Canada Revenue Agency (CRA) and provincial tax authorities.
While we do everything we can to protect your information, we also know that email is increasingly vulnerable to attack. Since the information we share is highly sensitive, our standard policy is to only share electronic files through ShareFile. Find the answers to questions you may have about our new file-sharing portal.