One-stop Canadian tax information center
The money you spend on purchasing capital assets for your business is capital expenditure. Unlike the day-to-day expenditures such as telephone bills, office stationery, rent, or car lease, a capital expenditure cannot be fully deducted immediately as a business expense. It can only be deducted over time in a form of depreciation. In stead of using…
Issuing T4 and T4A information slips is what a small business owner should be familiar with especially if the business hires employees or sub contractors.
The taxable income thresholds in all three Ontario provincial tax brackets and most provincial non-refundable tax credit amounts were increased by 3.3% in 2012, reflecting changes to Canada’s consumer price index (CPI) in Ontario.
You have to file your tax return on time even if some slips and receipts are missing. Under reported income may result in interest and/or penalties charge.
If you owe tax and do not file your return on time, the Canada Revenue Agency (CRA) will charge you a late filing penalty and interest.
For ordinary Canadian individuals, the personal tax returns have to be filed on or before April 30. Income tax filing deadline for 2014 was extended to May 5, 2015.
Commercial activity means any business or adventure or concern in the nature of trade carried on by a person, but does not include:
Calendar year means a year that starts on January 1 and ends on December 31.
Calendar quarter means a period of thress consecutive calendar months ending on the last day of the following months: March, June, September, and December.
If you are a small supplier, GST/HST registration is optional. But you have no choice but to register if you are no longer a small supplier. The effective date of your GST/HST registration depends on when you go over the small supplier threshold amount of $30,000. Here are two typical scenarios: