The Latest at Collins Barrow Yorkton

  • Collins Barrow

    CRA may propose radical changes to the Voluntary Disclosure Program

    In April 2016, the Minister of National Revenue established the Offshore Compliance Advisory Committee (“OCAC”) for the purpose of advising the Minister and the Canada Revenue Agency (“CRA”) on administrative strategies to deal with offshore compliance. In the fall of 2016, OCAC issued a report on CRA’s Voluntary Disclosure Program, which was endorsed by the Minister of National Revenue on December 8, 2016. On February 22, 2017, the CRA released its formal response, in which it indicated that the review of the recommendations prepared by OCAC will be completed by March 31, 2017.

    Collins Barrow

    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.

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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. 

    Collins Barrow

    CB Guelph welcomes new experts

    Guelph, ON - Collins Barrow Guelph Wellington Dufferin is pleased to welcome two new accounting and tax experts to their team. Gillian Gare is a talented staff accountant who provides specialized services to a variety of industries, and Bud Arnold is a tax expert who assists business and personal clients with planning and compliance in the fields of estate planning, corporate restructuring and annual filing obligations.

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    Budget 2017: 4 areas to watch

    The Minister of Finance, Bill Morneau, announced that the government’s federal budget will be tabled on March 22, 2017. Last year’s Canadian federal budget came in with a whopping $29.4-billion deficit and notable tax changes in the area of the small business deduction eligibility, among others. There were a number of items promised by the Liberal government during its campaign that were not announced in last year’s budget.  Will the Liberal government hold true on those promises in the 2017 budget? How will those potential tax changes impact business owners and individuals? Some areas to watch are outlined below.

    Collins Barrow

    Foreign corporations operating in the United States

    *Updated March 10, 2017

    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.