Category: Tax Tips

CRA System Error CluesCRA System Error Clues (ECs) – Summary of Issues, Workarounds & Fix TimelinesCRA System Error Clues

04/10/202504/10/2025 cpb No Comments

The Canada Revenue Agency (CRA) has shared updates on several system-related error clues (ECs) currently affecting EFILE and NETFILE submissions. Below is a structured summary of each issue, including temporary workarounds and anticipated resolution dates: 1. EC 90228 – Allowable Business Investment Loss Error Issue:This error is being triggered incorrectly in two situations: Temporary Workaround:…

Bookkeeping, Tax Tips

Guide to issue NR4

03/29/202503/29/2025 cpb No Comments

Issuing an NR4 (Statement of Amounts Paid or Credited to Non-Residents of Canada) involves several steps. Here’s a step-by-step guide: Step 1: Determine If You Need to File an NR4 You must file an NR4 if you have paid or credited amounts to a non-resident of Canada that are subject to withholding tax (e.g., interest,…

Non-Resident – Section 217 & 216.1 Explained

03/06/202503/29/2025 cpb 2 Comments

there is a difference between Section 217 and Section 216 for non-residents of Canada. These sections apply to different types of income and have different tax implications. Section 217 (Canadian Benefit Income) Who is it for?If you are a non-resident but receive certain types of income from Canada, you may choose to be taxed as…

Tax Tips, Update

Income Tax Changes impact your 2024 Tax Return

01/16/202501/16/2025 cpb No Comments

Here’s a clear summary of the updates and their potential impacts: 1. Capital Gains 2. Canada Child Benefit (CCB) 3. Canada Pension Plan (CPP) & Québec Pension Plan (QPP) Enhancement 4. Volunteer Firefighters & Search and Rescue Volunteers 5. Disability Support Deduction 6. Home Buyers’ Plan (HBP) 7. Short-Term Rentals These changes may affect your…

Tax Tips

Underused Housing Tax (UHT)

10/23/202310/31/2023 cpb 2 Comments

Under the C-8 Act, the Government has implemented a 1% annual tax on the fair market value of “underused residential property” owned by non-resident, non-Canadians. For instance, a home bought for $1,700,000 in 2018 with a current fair market value of $2,000,000 will incur a $20,000 tax.

Tax Tips, Update

Canada Sales Taxes: GST, PST, RST, and HST

09/11/202309/15/2023 cpb No Comments

Canadian governments (Federal, Provincial, and Municipal) charge you taxes for different reasons. Some of the most well-known taxes are the following: I explain Sales Tax in this article. When you purchase a good or service you need to pay an extra percentage on top of the original price to the merchant or service provider. The merchant in…

Tax Tips

Canada’s First Home Savings Account (FHSA): A Tax-Free Way to Save for Your First Home

08/09/202308/09/2023 cpb No Comments

Canada’s tax-free First Home Savings Account (FHSA) is a tax-exempt savings account designed for residents to save for purchasing a home. Similar to RRSP and TFSA, the FHSA is a registered savings account that can hold a variety of investment securities, including equity investments like stocks, fixed-income investments (bonds and GICs), as well as other…

Tax Tips, Update

Filing a Dissolution Notice for Canadian Businesses: What You Need to Know

05/29/202305/29/2023 cpb No Comments

Canadian businesses are required to submit a dissolution notice upon closure. Sole proprietorships and partnerships submit a form titled “Dissolution or Change of Proprietorship (or Partnership)” to the provincial Corporate Registry office, while corporations submit an “Application for (Voluntary) Dissolution” to the same office. Additionally, corporations must provide a copy of their corporate articles of…

Bookkeeping, Business, Tax Tips

How to Prepare a T5 Slip

02/17/202302/17/2023 cpb No Comments

A T5 slip reports dividends paid by a Canadian corporation to its shareholder(s). In order to prepare a T5 slip, you must follow steps below. What is a T5 Slip? A T5 slip reports dividends paid by a Canadian corporation to its shareholder(s). Preparing a T5 Slip In order to prepare a T5 slip, you…

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Tax Tips

LLCs for Canadians is a good idea?

09/10/202210/09/2022 cpb 1 Comment

A limited liability company (“LLC”) is a common type of entity used by U.S. persons investing in or operating a business in Canada. While it may not be optimal many Canadians use LLC’s to invest in or operate a business in the United States. LLC’s can be created in a number of States and may…

Business, Tax Tips