COVID-19 Provincial Tax Measures to Help Taxpayers

By | March 26th, 2020|Business, Taxes|

With everything that has been going on as a result of the COVID-19 pandemic, provincial governments have been acting quickly to put measures in place to help ease the financial burden on taxpayers.  COVID-19 Provincial Tax Measures Summary Many provinces are also offering utility and property tax payment deferrals. Check with your provider if this applies to you. Read about the Federal government tax measures in this post.  As these measures continue to change daily, please see these provincial websites for the latest information: BC Ministry of Finance Alberta Treasury Board and Finance Government of Ontario Click here for the latest [...]

COVID-19 and Taxes: Important Updates

By | March 23rd, 2020|Business, Not for profit, Taxes|

It’s crazy times right now among this COVID-19 outbreak. We want to remind you that we are here for you at Virtual Heights Accounting. The government announced some significant economic measures to support Canadians during this COVID-19 crisis over the past few weeks. The full economic plan is covered here in detail: https://www.canada.ca/en/department-finance/news/2020/03/canadas-covid-19-economic-response-plan-support-for-canadians-and-businesses.html  Here is a brief summary of measures that may be relevant to you.  Personal Tax Extension of payment deadlines for personal incomes taxes to September 1, 2020; Extension of filing deadlines for personal income tax (T1) returns to June 1, 2020 (we should still file if you have [...]

I Haven’t Filed My Corporate Taxes in Three Years: What Should I Do?

By | March 15th, 2020|Accounting, Business, Not for profit, Taxes|

Sometimes life gets in the way. It prevents you from meeting your responsibilities as a business owner or the director of a charitable organisation. It happens, and if you find yourself behind on your taxes (or maybe you’ve never filed a tax return), it’s always best to get caught up then try your best to stay on top of things.  The Canada Revenue Agency (CRA) has a number of programs available to help make getting caught up a little easier.  Voluntary Disclosure The CRA Voluntary Disclosure Program provides an opportunity for taxpayers to correct a misfiled return or file a return [...]

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Do I Have to Keep a Mileage Book?

By | March 1st, 2020|Business, Taxes|

Yes, you do! But please don't stop reading. There are important things you need to know about keeping track of your business mileage. If you have a vehicle you own personally but also use for business, you must keep a vehicle expense logbook (also known as a mileage book).  Why a Mileage Book is Important You can only deduct vehicle expenses for the portion of expenses that relate to your business.  Keeping track of all your trips (both personal and business) is the only way to know how to split vehicle costs (such as fuel, insurance, repairs, and maintenance) between business [...]

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The Benefits of Paying Wages

By | February 1st, 2020|Taxes|

An important part of tax planning is determining if you will pay yourself wages out of your company. There are a number of benefits to paying wages, including increasing deductions in your company, contributing to your retirement, and receiving additional tax credits. Here's a breakdown of the advantages that come with paying yourself wages. Reduce Corporate Taxes  When you pay yourself wages out of your company, you can claim a deduction against your company's income.  For example, if you have $95,000 net profit in your company, and you decide to pay yourself $25,000 in wages, your company's income is reduced to [...]

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Why Do I Have to Pay Instalments and What Happens if I Don’t?

By | December 18th, 2019|Business, Taxes|

The requirement for corporations to pay corporate tax instalments is the same as when individual taxpayers have income tax deducted from their paycheque every payday. Just like tax payments sent in on behalf of taxpayers by their employers act like a credit against the amount of tax owing at the end of the year, instalments made by corporations reduce their tax bill when they file their tax return.  What are instalments? Instalments are tax payments you pay before filing your tax return. Even if your company doesn’t meet the requirement to pay instalments, you can do so voluntarily to avoid a [...]

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