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Incorporating a proprietorship business
When an individual operates a business without having a corporation it’s referred to as a proprietorship business. But when is the right time to incorporate? If there’s income in your business that you don’t need to spend personally every year, you should seriously consider incorporating. Not only will you potentially limit liability and protect personal assets, but the tax rates for a corporation are lower. You can also leave money in the corporation for many years and get tax savings that way. 
Mar 6, 2017
Cross border and international Tax advisory
Foreign corporations operating in the United States
<strong><em>*Updated March 10, 2017</em></strong> With increasing frequency, Canadian corporations are venturing across the border into the United States to perform services or sell their products. Consequently, we often field questions about the U.S. corporate income tax filing requirements for Canadian corporations generating revenue from our trading partner to the south. This article summarizes some of those requirements.
Mar 6, 2017
Cross border and international Tax advisory
Medical professionals and the interplay of the tuition credit and the foreign tax credit
It is not uncommon for recently graduated medical professionals to take up employment in the United States immediately upon completion of their education and practical experience requirements. Those who maintained Canadian residence for tax purposes during the pursuit of their education have likely accumulated a significant tuition credit, given the time and financial commitment involved. The corresponding Canadian tuition/education tax credit is largely calculated by multiplying total tuition fees paid by the lowest federal (15%) and provincial marginal tax rates (5.05% in Ontario). The result of this calculation is used to reduce annual personal income taxes on a dollar-for-dollar basis.
Mar 6, 2017
Audit and accounting Indirect tax Tax advisory
Get ahead of the curve on GST/HST obligation issues
The CRA announced in the December issue of the “Businesses – Tax information newsletter” the kickoff of a new campaign to send GST/HST compliance letters to GST/HST registrants. Through this campaign, the CRA hopes to assist taxpayers in gaining a better understanding of their GST/HST compliance requirements. Accordingly, the targets of this campaign are expected to be individuals and small businesses.  
Feb 27, 2017
To deduct or not to deduct; that is the question
Owning property for the purpose of earning rental income creates benefits and challenges. Property owners incur a variety of expenditures in order to earn rental income and maintain property value. Since not all expenditures are treated equally for tax purposes, it is important to be aware of the tax implications when incurring such expenditures in a rental property business.
Feb 24, 2017
Audit and accounting
IFRS accounting standards to watch out for in an uncertain economy
During times of economic uncertainty, one might expect that an entity would have fewer accounting issues to consider because activity levels often decrease. However, the opposite is quite often the case. While not new, there are a number of IFRS accounting standards that often take on increased importance when times get tough. 
Feb 22, 2017
Strategies for Dealing with the New SBD Rules
Some taxpayers utilize corporate groups, which have been structured to multiply their access to the small business deduction (SBD). The SBD allows a company to pay a lower tax rate on the first $500,000 of income each year. Access to the SBD is sometimes limited as it must be shared by associated corporations and corporate partners. To avoid having to share the SBD, some businesses that naturally work in groups, have structured their affairs in a way that allows more than one $500,000 small business deduction. In reaction to this multiplication strategy, the government introduced legislation in the 2016 federal budget to end the effectiveness of such structures and, in effect, increase tax rates for companies in such groups.
Feb 16, 2017
Technical Bulletin: February 2017
This <em>Technical Bulletin</em><strong> </strong>covers the various developments from October 2016 to January 2017. Collins Barrow regularly publishes <em>Technical Bulletin</em> for the general interest of its clients and friends to highlight the continually changing accounting and assurance standards, and the interpretations thereof, in Canada.
Feb 15, 2017
Methods of drawing funds from a corporation
Shareholders and family members of incorporated farming operations have a number of options for receiving compensation from their corporation. These options can range from compensation for services rendered, to a return of equity invested in the corporation or merely income derived from owning shares. 
Feb 14, 2017
Tax advisory
Taxable benefits and the GST/HST
It’s that time of year again – as an employer, what should you know about taxable benefits and the GST/HST? Did you know the GST/HST impacts not only the calculation of certain employee taxable benefits, but also the calculation of the employer’s net tax for GST/HST reporting purposes?
Feb 13, 2017
Cross border and international Tax advisory
Infographic: Haven’t fulfilled your U.S. tax obligations?
In recent months, there have been rumblings that the streamlined program — a “friendly” system that helps U.S. taxpayers living abroad get caught up on their filing obligations — is coming to an end. If you are an American citizen or Green Card holder who hasn’t been filing American taxes, now is the ideal time to get caught up, as you may be running out of time to avoid harsh penalties.
Mike Hayward Todd King Feb 8, 2017
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