Tax Tips: Fourth Quarter 2021

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

4TH QUARTER 2021 TAX TIPS

Overview

Enhancing the Value of Owner-Managed Business: Starting the Transition Ear

• A recent Intelligent Work article discussed guidance provided to Harvard MBA students regarding investing in owner-managed businesses.

Salaries to Family Members: Amounts Paid Must be Traceable

• Family members should be paid for work done for the business in the same manner as other non-family members.

Providing Supplies to Your Contractors: GST/HST Issues

• The details of supply agreements to contractors should be reviewed to determine if GST/HST should be charged.

Director Liability: Properly Resigning

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

Life Insurance Policies: Using Tracking Shares

• Holding a life insurance policy in a corporation can be a useful tool to assist with continuity upon death of an owner-manager.

Holding Digital Assets in RRSPs: Pitfalls and Possibilities

• If interested in holding digital assets in a tax-sheltered savings account such as an RRSP, make sure that item is a qualified investment.

Withdrawing From Family RESPs: Flexible Planning Possibilities

• An article considered some possibilities and strategies to discuss when withdrawing funds from a single RESP when children have different financial needs for their education.

Workspace in Home Claims: CRA Reviews

• In the summer of 2021, CRA started to review deductions made by employees working from home during 2020.