Entrepreneurship & Small Business

Post your CORPORATE TAX questions here

  • Last Updated:
  • Dec 13th, 2018 2:12 pm
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Newbie
Apr 27, 2017
3 posts
Ottawa, Ontario
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.
Banned
Feb 19, 2013
289 posts
534 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
83 posts
52 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
818 posts
289 upvotes
Calgary
Hi, I've got a real estate holding company. Can I use the capital gain to pay dividends to another holding company?
Member
Mar 2, 2011
242 posts
32 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?
Newbie
Jun 24, 2017
1 posts
Hi, I have an incorporated company. I have a personal car that I've started to put under the business. I know about the half year rule and the percentage of use that must be applied. My question is about assets section if T2. Do I claim the same amount of asset every year until the car is paid off since the liability is going down and equity up? Or regardless of decreasing liability, I need to adjust asset of my car in regards to the depreciated amount?
Newbie
Jul 3, 2017
1 posts
Can a professional corporation pay dividend to immediate family members even if they have no shares in a corporation?
Thanks
Newbie
Dec 31, 2017
1 posts
Afternoon,

My company as not been working since Jan 2016, Lost of all contracts do to the oil falling. My company was LTD, nothing major just me. i have not work this company since then... I going to close the company in about 6 days due to no work, was just hanging on... i think i own about $4000.00 in tax... do i still need to pay that when i close or no? or how can this come back to hurt me?
Deal Addict
Feb 5, 2009
2631 posts
754 upvotes
Newmarket
DocAJ001 wrote:
Jul 4th, 2017 10:35 am
Can a professional corporation pay dividend to immediate family members even if they have no shares in a corporation?
Thanks
No
Deal Addict
User avatar
Mar 8, 2004
3038 posts
683 upvotes
Mississauga
samin62 wrote:
Jun 14th, 2017 9:45 am
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?
anytime I get a call from anyone claiming to be from the CRA, I ask them what this is about and then I politely get off the phone and call INTO the CRA and verify. If the request is something about paying back-taxes or something equally ridiculous I just hang up. I keep tabs on my CRA communications and taxes owed via my My CRA personal account.,
Newbie
May 31, 2015
3 posts
Spruce Grove
samin62 wrote:
Jun 14th, 2017 9:45 am
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?
CRA's main office for the whole country is in Winnipeg, and right from the CRA website 1-204-984-XXXX are used as their official lines. So it sounds like it is possibly a legit extension.

That being said, I would call the main number on their website, and go from there.

However ignoring it outright is likely not a good plan.
Member
Mar 2, 2011
242 posts
32 upvotes
Toronto
Tig wrote:
Jan 4th, 2018 6:12 pm
anytime I get a call from anyone claiming to be from the CRA, I ask them what this is about and then I politely get off the phone and call INTO the CRA and verify. If the request is something about paying back-taxes or something equally ridiculous I just hang up. I keep tabs on my CRA communications and taxes owed via my My CRA personal account.,
citizen19 wrote:
Jan 9th, 2018 12:53 pm
CRA's main office for the whole country is in Winnipeg, and right from the CRA website 1-204-984-XXXX are used as their official lines. So it sounds like it is possibly a legit extension.

That being said, I would call the main number on their website, and go from there.

However ignoring it outright is likely not a good plan.
It turned out to be legitimate. Anyways everything got resolved, just had to pay some money i owed.

Thanks for the responses
Jr. Member
User avatar
Nov 16, 2015
178 posts
348 upvotes
Calgary
RobertB778382 wrote:
Jan 1st, 2018 6:14 pm
Afternoon,

My company as not been working since Jan 2016, Lost of all contracts do to the oil falling. My company was LTD, nothing major just me. i have not work this company since then... I going to close the company in about 6 days due to no work, was just hanging on... i think i own about $4000.00 in tax... do i still need to pay that when i close or no? or how can this come back to hurt me?
Yes, you will still have to pay it. Directors liability. You can always choose not to, and hope that for some reason they decide not to pursue you. But if they do, expect it to double with fines and interest.

The only way out of corporate taxes as a sole director is personal bankruptcy, as far as I know.
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