Employers have responsibilities they must fulfill for their employees. Part of these responsibilities are the correct calculation and timely remittance of payroll deductions.
When looking to upgrade equipment or acquire new buildings or grain storage, leasing is often presented as an option to traditional purchase financing.
Under a standard purchase, the purchaser takes ownership of the asset immediately. The vendor is paid in full, and if necessary, the purchaser can obtain financing from a lender who will likely only finance a portion (down payment or trade-in will be needed). The terms of this loan (payments, interest rate, amortization period) are negotiated between the lender and the purchaser.
Under a lease contract, the leasing company purchases and takes ownership of the asset. The vendor is paid by the leasing company. The lessee then agrees to use that asset for a set time period, for set lease payments paid to the leasing company over that time period. At the end of the lease term, the lessee usually has an option to purchase the asset from the leasing company for a pre-determined residual value.
When making a decision on how to finance new equipment purchases for your business, it is important to understand both the cash flow and tax implications of each option.
The federal government has recently taken steps to make applying for the Disability Tax Credit (DTC) easier, as well as expand eligibility for the DTC to provide access to more taxpayers with certain severe and prolonged impairments.
In May 2021 the Federal Government announced the new Canada Greener Homes Grant intended to provide grants of up to $5,600 for Canadian homeowners to cover the cost of certain retrofitting improvements aimed at improving the energy efficiency of their home.
The program does not provide funding up-front, but instead requires eligible applicants to cover costs out-of-pocket, which may be eligible for reimbursement of all or a portion of the costs incurred. Before applying for this new grant, here are a few important points to know about how this new program works:
CRA announced a one-year waiver to April 30, 2022 of interest on taxes payable for the 2020 tax year for individuals who meet the following conditions:
Now that personal tax season is here you will need to start gathering up all your tax slips to report your income and deductions for 2020. With a lot of institutions and businesses going paperless you will need to determine what tax slips may be coming by e-mail or that you need to sign into your account to download versus arriving in the mail.