Canada Emergency Business Account (CEBA)
This program is for loans to certain qualified small businesses (either incorporated or as a proprietorship) and non-profit organizations that have a business number. The CEBA is: Interest-free loan of up to $40,000 for qualifying small businesses and non-profits. If the full $40,000 is borrowed, $10,000 of the loan (25% of the base loan) is […]
Common Uses of a Holding Company
A Holding Company is simply a Company that owns the shares of another Company (a subsidiary Company). Usually Holding Companies do not do any active business. The active business is done in the subsidiary Company. Some common uses of a Holding Company include: A tax advantage in Canada exists in that intercorporate dividends between a subsidiary […]
Foreign Exchange Taxation and Financial Statement Rules
Financial statements may be prepared using rules to account for foreign exchange gains and losses (which form part of business income) that differ from the rules to calculate foreign exchange gains and losses for income tax purposes. These differences may significantly affect the taxable income of a business and consequently a thorough analysis of how […]
MoneyMatters Newsletter Issue 31
Loans to Spouse and Minor Children – Effective Tool for Income Splitting to Reduce Taxes May the 4th be with you! Time to take advantage of income splitting by having higher income taxpayers loan funds to lower income Spouses/Minor Children. The Prescribed rate of interest will fall to 1% on July 1, 2020. This low […]
MoneyMatters Newsletter Issue 30
RRSP Over Contributions – No Mercy Do you know your RRSP Contribution Limit? As we are coming up to the end of the year, many people are considering topping off their RRSP’s to maximize their 2019 tax deductions. However, we continually see some people who over contribute. In that case what happens? The Penalty For […]