Category: Definitions

A trust is a binding obligation enforceable by law when undertaken. It may be created by one of the following:

A trustee is an individual or trust institution that holds legal title to property in trust for the benefit of the trust beneficiaries. The trustee includes an executor, administrator, assignee, receiver, or liquidator who owns or controls property for some other person.

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.

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.

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 is the amount on which you first claim capital cost allowance. The capital cost of a property is usually the total of:

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 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 is a transaction between persons who were not dealing with each other at arm’s length with each other.

Auditing is a way for the Canada Revenue Agency (CRA) to monitor and inspect GST/HST and income tax returns, excise taxes and duties, and payroll records. Audits help maintain public confidence in the fairness and integrity of Canada’s tax system.