A gift card or certificate is a monetary-equivalent, (such as vouchers, receipts, tickets) that has a stated value and provides for payment of goods and services in the amount of the stated value.
Gift card or certificate
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Author: Simon Zhong
Business income
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Business income includes income from any activity you do for profit. For example, income from a service business is business income. However, business income does not include employment income.
How a partnership is taxed?
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A partnership by itself does not pay income tax on its operating results and does not file an annual income tax return. Instead, as a partner, you include your share of the partnership income (or loss) on your income tax return. You do this whether or not you actually received your share in money or…
Tax freedom day in Canada
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Average Canadians celebrate their tax freedom day, the day their stop paying the taxman and start paying themselves, on June 10, 2013. This day comes two days later than in last year. Tax Freedom Day varies from province to province, depending on the taxation levels of provincial and local governments. From earliest to latest:
Capital cost allowance (CCA)
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Capital cost allowance (CCA) is the deduction you can claim over a period of several years for the cost of depreciable property, that is, property that wears out or becomes obsolete over time such as building, furniture, or equipment, that you use in your business or professional activities.
Capital cost
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Capital cost is the amount on which you first claim capital cost allowance. The capital cost of a property is usually the total of:
Depreciable property
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Depreciable property is the property on which you can claim Capital cost allowance (CCA). It is usually capital property used to earn income from a business or property. The capital cost can be written off as CCA over a number of years.
Proceeds of disposition
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Proceeds of disposition usually means the amount you received or will receive for your property. In most of cases, it refers to the sale price of the property. This could also include compensation you received for property that has been destroyed, expropriated, or stolen.
Non-arm’s length transaction
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Non-arm’s length transaction is a transaction between persons who were not dealing with each other at arm’s length with each other.
How tax returns are selected for audit?
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Once you file a tax return, your return is recorded in the Canada Revenue Agency (CRA)’s computer system. The computer system can sort tax returns into various groups to help auditors select tax returns for audit. Most returns are selected for audit review from Computer-generated lists.