Entrepreneurship & Small Business

Post your CORPORATE TAX questions here

  • Last Updated:
  • May 17th, 2017 6:59 pm
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Newbie
Apr 27, 2017
2 posts
I also am a one-person inc. and have agonized over this point for years. My approach is to do all the bookkeeping myself (using gnucash), prepare financial statements at end of year, send them to accountant who then does the T2. I take care of dividends myself as well as remitting my HST annually. SO far no issues at all with the CRA. And the ~$900 is about right, that's what I'm paying the accountant too. I tried the T2 tax software (FutureTax) and the corporate software is nowhere near as easy to use as personal tax software, I gave up on Future Tax. There's really a lot of jargon in the corporate tax world, and I have only so much time to devote to learning all about all this stuff. For those of you who have not tried gnu cash I think it's ideal for small business although there is a bit of a learning curve. On the plus side, you'll never be pestered with advertising, licence fees, and all that other bloat that comes with commercial accounting software. Although gnucash is free, it is a powerful package.
Newbie
May 29, 2009
46 posts
5 upvotes
Thornhill
I plan to hire my son who is 18 years old to work part time in my office from May to August. I will pay him $3000 ($750/month). EI is exempted. Tax will be deducted from his pay. Is it necessary to deduct CPP? CPP is exempted for the first $3500. If CPP is not deducted from his pay, I do not need to pay the employer CPP either.
Newbie
May 29, 2009
46 posts
5 upvotes
Thornhill
tomboy84 wrote:
Dec 28th, 2016 3:39 pm
Hi,

I own my own corporation, doing IT contract work. My wife and I have both been drawing a salary but we have accumulated a fair bit of money that is reatined in the corporation.

Our contracts are done soon and we are not certain of obtaining more work.

My understanding is that we can pay ourselves wages for up to 3 years even though we are not generating revenue. Is this correct ?
I have done that. the loss can be claimed against the revenue in the previous 3 years, you will get tax refund. For loss in 2017, make sure your accountant claim it against 2014 revenue.
Jr. Member
Feb 19, 2013
191 posts
343 upvotes
Toronto
wonghouse wrote:
May 12th, 2017 11:12 pm
I plan to hire my son who is 18 years old to work part time in my office from May to August. I will pay him $3000 ($750/month). EI is exempted. Tax will be deducted from his pay. Is it necessary to deduct CPP? CPP is exempted for the first $3500. If CPP is not deducted from his pay, I do not need to pay the employer CPP either.
You will have to pay both Employer and deduct the Employee portion of CPP.
Deal Addict
Mar 16, 2015
1003 posts
107 upvotes
Toronto, ON
i am an IT contractor. Can I pay my wife some salary for maintaining my books in waveapps online accounting software. Its pretty basic. 2 invoices a month( indeed i do not even send invoices but create them for record keeping. agency pays me by direct deposit) and very few expenses.
As such i run the risk of being assessed as a PSB. in that case do I increase my risk by paying my wife some salary? how much salary per year is justifiable for maintaining such simple bookkeeping?
thx
Newbie
Apr 25, 2017
31 posts
18 upvotes
Hi.

If I forgot to declare sales pertaining to sales last year, can I put those undeclared sales in this current year or I have to put it in last year's sales. Because when you declare GST PST for every reporting period, you have to declare sales for that period as well. But I didn't declare all sales. Now I do but the reporting periods have been closed. I'm still afraid that if I put those sales to last year's revenue, it's gonna affect the income statement when doing corp income tax. That makes the sales in the book don't match what I've declare with the GST PST with the government.

Thanks.
Sr. Member
Nov 3, 2009
533 posts
138 upvotes
Calgary
Hi, I've got a real estate holding company. Can I use the capital gain to pay dividends to another holding company?
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