All About Tax

The Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit is to help individuals and families with low or modest incomes offset all or some of the GST or HST they pay.

If you receive a T-slip after you have already filed your tax return, what would you do? The worse thing is to ignore it. You may be caught in the snare of subsection 163(1) penalty, also known as “repeated failure to report income” penalty.

Many people are talking about paying too much tax in Canada. But not many Canadians know exactly how much they pay for income tax each year, or in other words, what percentage of their total income goes to the taxman.

If you own a corporation, you have different options to extract money from your corporation. Tax is a critical factor to consider while you are deciding which option to take.

It is very common that one spouse earns a much higher income than the other does. For those families, the family’s combined tax bill can be reduced if the higher earner pays family expenses and the spouse with lower income saves and invests.

There are a lot of confusions regarding the tax deductibility of legal fee expenses. The general rule is simple: they are deductible only to the extent that they are incurred to gain or produce income from a business or property.

Canada Revenue Agency allows employers to give two non-cash gifts per year, on a tax-free basis, to employees for special occasion such as Christmas, birthday, marriage or a similar event. The total value (including taxes) of the gifts should be $500 or less.

There are essentially four broad sources of income: