Tax Tips

Tax Tips: Fourth Quarter 2020

We provide tax tips on available benefits, CRA policies, and more.

4TH QUARTER 2020 TAX TIPS

Overview

CPP: When to Apply?

  • While the normal age to begin receiving regular CPP is 65, individuals can apply to start receiving earlier at a cost, or later for a greater benefit.

Reasonable Meal Allowances: Moving, Medical and More!

  • CRA announced that, effective January 1, 2020, the rates allowable under the simplified method related to meal claims for transport employees increased.

Commingling of Personal Expenses in the Business: The Cost Could Be Very High

  • Deducting personal expenses in a corporation can lead to a very costly bill, well in excess of the tax should the amounts have been reported correctly.

Unreported Income: Statute-Barred Periods

  • In a French Court of Quebec case, the taxpayer had been assessed with unreported income for 2004, 2005 and 2006, respectively, all beyond the normal reassessment period.

Unremitted GST/HST or Source Deductions: Directors Can be Personally Liable

  • Directors can be personally liable for employee source deductions¬†and GST/HST unless they exercise due diligence to prevent failure of the corporation to remit these amounts on a timely basis.