Entrepreneurship & Small Business

Post your CORPORATE TAX questions here

  • Last Updated:
  • Jun 14th, 2017 9:45 am
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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.
Member
Feb 19, 2013
205 posts
381 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.
Newbie
Apr 25, 2017
57 posts
38 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
574 posts
148 upvotes
Calgary
Hi, I've got a real estate holding company. Can I use the capital gain to pay dividends to another holding company?
Newbie
Mar 2, 2011
82 posts
4 upvotes
Toronto
I am not sure if this is the right place, but i got a call from CRA from winnipeg regarding my small business which is based in Ontario. I only ever did business in Toronto. Why would manitoba call me regarding taxes? The number they called from was 1 204 984 0284. The lady said in voice mail "i will expecting a call back within 2 business days". Sounds like a threat.

Phishing scam?

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