Baker Tilly Canada | Insights

Insights

Reduce Your Family Taxes with a Prescribed Rate Loan

Are you in a higher tax bracket than your spouse? Do you earn investment income from a non-registered account? If so, a prescribed rate loan can provide you with a method of income splitting that will reduce your taxes.

Maintaining a pure farm corporation

One area that many incorporated farm operations commonly overlook is the eligibility of their corporation’s share capital for the $750,000 (now proposed to be $800,000) individual Lifetime Capital Gains Exemption and other certain tax deferrals. The agricultural industry can be plagued by potential hazards, and, unfortunately, a sudden severe injury or death sometimes forces a succession plan earlier than expected.

Personal Service Business – Tax Increase Receives Royal Assent

On June 26, 2013, the changes to the tax treatment of a “personal service business” (“PSB”) received Royal Assent. Effective for taxation years that begin after October 31, 2011, PSB income will be subject to federal corporate tax at the full unreduced rate of 28% (assuming the availability of the 10% provincial abatement).

Technical Bulletin - July 2013

This technical bulletin covers the various developments from April to June 2013. Collins Barrow regularly publishes Technical Bulletin for the general interest of its clients and friends to highlight the continually changing accounting and assurance standards, and the interpretations thereof, in Canada.

Technical Bulletin - July 2013 - Part II

PART II: This technical bulletin covers the various developments from April to June 2013. Collins Barrow regularly publishes Technical Bulletin for the general interest of its clients and friends to highlight the continually changing accounting and assurance standards, and the interpretations thereof, in Canada.

Growing Forward 2 (GF2) - Cost Sharing Opportunities for Farmers

The successor of Growing Forward 1 (GF1), GF2 is the federal-provincial-territorial initiative endorsed in June 2013 designed to encourage innovation, competitiveness and market development. Similar to GF1, it features many cost sharing opportunities for farm businesses.

Cross border and international Tax advisory

New T1135 – Foreign Income Verification Statement

On June 25, 2013, Parliamentary Secretary Cathy McLeod announced the launch of a new T1135 – Foreign Income Verification Statement as part of the Government’s measures to crack down on international tax evasion and aggressive tax avoidance. The updated form will require additional details to be reported which may be time consuming and onerous.

Indirect tax Tax advisory

Best Practices: Indirect Sales Tax Overpayment and Exposure Analysis

At Collins Barrow, we strive to bring extra value to our clients. To that end, we can provide an indirect sales tax overpayment and exposure analysis. This is a specialty tax service above and beyond the thorough general audit process typically provided.

Indirect tax Tax advisory

Get the Credit You Deserve: Document Your Credit and Debit Notes

In light of the many recent changes and proposed changes to provincial and federal sales taxes, it is worth reviewing how your credit and debit note processes function. At Collins Barrow, we have encountered two situations that demonstrate how “incorrectly” processed credit notes can have a substantial effect on your bottom line.

Leasing Farm Assets

In the last number of years the use of leases in farming operations has become more and more prevalent. Statistics from Farm Credit Corporation indicate that the annual percentage increase in the volume of leases from 2010 to 2012 was 34%, 66% and 14% respectively with an average increase of 38% in the last three years.

Tax Flash: CRA extends filing deadline in Alberta due to flooding

The CRA has extended the deadline for tax returns filed in Alberta with due dates during the flooding to August 2, 2013, as disclosed on the CRA website.

Solutions within reach

Wherever you need us.