A tax credit is a direct reduction to the amount of income tax payable. See our Glossary for more definitions.
Posts Tagged ‘Tax and Law’
A tax credit’s implications to your income tax
Tuesday, April 10th, 2012Watch for developments with Bill 65
Friday, April 6th, 2012Is your organization incorporated provincially in Ontario? Watch for developments with Bill 65, Ontario’s new Not-For-Profit Corporations Act. When it is proclaimed in force, corporations will have three years to file Articles of Continuance and revise their by-laws to comply with the act.
If you need a firm answer from the CRA, get a ruling.
Tuesday, April 3rd, 2012Any information you receive from the CRA by phone about GST/HST (or any other topic) is merely an opinion. If you need a firm answer, you must write the CRA and request a written ruling. This responds to your particular case, and binds the government.
Some charities can file under the general method and claim 100% input tax credits
Friday, March 30th, 2012Some charities that are registered to charge GST/HST qualify to file under the general method, where they can claim 100% input tax credits rather than partial rebates. You will find details on the CRA website.
Personal Income Tax Deadline is April 30
Thursday, March 29th, 2012Personal income tax returns for 2011 are due Monday, April 30, 2012. Freelancers can take advantage of a later deadline: they have until Friday, June 15, 2012 – but any tax owing must be paid by April 30.
Itemize pay and deduction amounts for employees
Tuesday, March 27th, 2012Employers must provide detailed pay stubs itemizing pay and deduction amounts. Accounting software does this automatically with each pay. If you use manual cheques, every time net pay changes you should issue a report to each employee.
Use fillable forms on CRA website
Friday, March 23rd, 2012Visit the CRA website. It contains many guides and forms, lots of which are now “fillable” online.
Don’t get stuck paying both the employer’s and employee’s share of EI and CPP
Thursday, March 22nd, 2012If the CRA determines that a staff member has been improperly treated as a self-employed person, you can be charged both the employer’s and the employee’s share of EI premiums and CPP contributions for the period in question.
Special events often require split receipting
Tuesday, March 20th, 2012Tickets for special events are often not fully receiptable, because patrons receive advantages from attending. Check our FAQ for split receipting rules.
GST/HST questions can be answered at the CRA Rulings Hotline
Thursday, March 15th, 2012Do you have a question about GST/HST? Contact the GST/HST Rulings Hotline at 1-800-952-8987 to speak to an officer.
Some board members may be held to a higher standard of care than others
Wednesday, March 14th, 2012With some jurisdictions, accountants, lawyers and other professionals serving on your board of directors may be held to a higher standard of care than other board members: they are expected to apply their professional expertise, even as volunteers.
Employee and employer contributions to the CPP
Tuesday, March 13th, 2012Employees and employers contribute equally to the Canada Pension Plan. In 2011, the rate is 4.95% of earnings over $3,500. Self-employed individuals pay the entire amount – that is, 9.9% of earnings over $3,500.
Advantages mean tickets for special events are not fully receiptable
Tuesday, March 6th, 2012Tickets for special events are often not fully receiptable, because patrons receive advantages from attending. Check our FAQ for split receipting rules.
Charities registered to charge GST/HST must file under Charities Method
Thursday, March 1st, 2012Registered charities that are registered to charge GST/HST are expected to file their returns using the charities method. Under this method, charities keep 40% of GST/HST charged (and remit the other 60%), and receive a partial rebate of GST/HST paid.