Entrepreneurship & Small Business

Taxation - answering any questions here

  • Last Updated:
  • Nov 20th, 2018 9:51 am
[OP]
Newbie
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Oct 30, 2017
47 posts
12 upvotes
Ottawa, Ontario

Taxation - answering any questions here

Hi, I am a professional accountant in Ottawa, Ontario and I am doing my practice now. I am opening this forum to provide help. If you have any accounting or tax related questions. You can post it here. I am familiar with Ontario tax or Quebec tax system. Thank you
Last edited by Redmask on Sep 17th, 2018 8:05 am, edited 3 times in total.
Reason: No advertising in posts and no external links in sigs, read the forum rules before continuing.
thank you very much
Philip Kwok, CPA, CGA
73 replies
Deal Addict
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Feb 14, 2009
1053 posts
377 upvotes
PhilipK796978 wrote:
Sep 5th, 2018 3:31 pm
Hi, I am a professional accountant in Ottawa, Ontario and I am doing my practice now. I am opening this forum to provide help. If you have any accounting or tax related questions. You can post it here. I am familiar with Ontario tax or Quebec tax system. Thank you
Good idea!
Newbie
Feb 23, 2008
18 posts
2 upvotes
Toronto
Hi there, on line 101 on HST returns, do we include all global sales or just those that are subject to HST?
[OP]
Newbie
User avatar
Oct 30, 2017
47 posts
12 upvotes
Ottawa, Ontario
on Line 101, you report all the sales, charge/not charge HST, the sales reported need to match the total income you report in your income statement
Last edited by Redmask on Oct 1st, 2018 9:35 am, edited 1 time in total.
Reason: Removed link
thank you very much
Philip Kwok, CPA, CGA
Newbie
Feb 23, 2008
18 posts
2 upvotes
Toronto
Thanks. One other question. How are HST refunds categorized in accounting system like Xero?
[OP]
Newbie
User avatar
Oct 30, 2017
47 posts
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Ottawa, Ontario
this is an asset or liability on the balance sheet.
thank you very much
Philip Kwok, CPA, CGA
Newbie
Aug 20, 2018
29 posts
17 upvotes
Kind of an odd question.

How much work is involved in doing a T1 tax return if the corporation had zero financial activity for multiple years?

Basically, the corporation was dormant for five years and I decided to dissolve the corporation. How much should a good accountant charge for multiyear T1 tax return processing for a dormant corporation?
[OP]
Newbie
User avatar
Oct 30, 2017
47 posts
12 upvotes
Ottawa, Ontario
hey,
a corporate tax return is a T2, not T1.
not including the fees from the accountant, the fees for filing each corporate tax is about $70 per year.
if it is simple, I mean very simple, it will take accountant about 1/2 year year, then I will say the fees can be about $100 per year plus the filing fees, that will be the very minimum I can assume.
which province you are in?
Last edited by Redmask on Oct 1st, 2018 9:35 am, edited 1 time in total.
Reason: Removed link
thank you very much
Philip Kwok, CPA, CGA
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Aug 27, 2004
238 posts
12 upvotes
Where is the governement on Income Sprinkling? It was in the news a while back, lots of protests by Doctors, etc. Now I have not heard much about it recently. Is the Govt. still planning on enforcing against the practice? What are you advising your clients?
Member
Nov 12, 2014
446 posts
248 upvotes
Kingston, ON
Mr Sparkle wrote:
Sep 12th, 2018 1:39 pm
Where is the governement on Income Sprinkling? It was in the news a while back, lots of protests by Doctors, etc. Now I have not heard much about it recently. Is the Govt. still planning on enforcing against the practice? What are you advising your clients?
Yep it's law now...get advice from your accountant.
Newbie
Aug 20, 2018
29 posts
17 upvotes
PhilipK796978 wrote:
Sep 11th, 2018 9:43 pm
hey,
a corporate tax return is a T2, not T1.
not including the fees from the accountant, the fees for filing each corporate tax is about $70 per year.
if it is simple, I mean very simple, it will take accountant about 1/2 year year, then I will say the fees can be about $100 per year plus the filing fees, that will be the very minimum I can assume.
which province you are in?

Thanks for your input. I am in Ontario. Free bump for you.
Last edited by Redmask on Oct 1st, 2018 9:35 am, edited 1 time in total.
Reason: Removed link
[OP]
Newbie
User avatar
Oct 30, 2017
47 posts
12 upvotes
Ottawa, Ontario
Mr Sparkle wrote:
Sep 12th, 2018 1:39 pm
Where is the governement on Income Sprinkling? It was in the news a while back, lots of protests by Doctors, etc. Now I have not heard much about it recently. Is the Govt. still planning on enforcing against the practice? What are you advising your clients?
it is already applying to everyone. we used to be able to pay dividends out to shareholders without any involved of the company, now we need to make sure they are actively involved before paying any dividends to them
thank you very much
Philip Kwok, CPA, CGA
Member
Jan 25, 2015
370 posts
106 upvotes
Toronto, ON
PhilipK796978 wrote:
Sep 12th, 2018 10:11 pm
it is already applying to everyone. we used to be able to pay dividends out to shareholders without any involved of the company, now we need to make sure they are actively involved before paying any dividends to them
By involved they can be share holders/investors and or employees?
[OP]
Newbie
User avatar
Oct 30, 2017
47 posts
12 upvotes
Ottawa, Ontario
LoonieDeals wrote:
Sep 14th, 2018 9:52 am
By involved they can be share holders/investors and or employees?
to be involved, it must be employee, part-time or full-time, an employee can be a shareholder also.
thank you very much
Philip Kwok, CPA, CGA
Newbie
Sep 15, 2018
1 posts
I have a few questions regarding tax implications of warrants of publicly traded companies on the TSX. A while back I bought warrants for such a company (I am not employed by this company and I bought the shares on the TSX) and I am wondering what are the tax implications of selling the warrants or of converting the warrants to shares at some future time. I bought the shares for $0.15 each and the exercise price is $1.25 each for conversion to shares in the next 2 years or so. Let's say at conversion time the shares are trading at $5.00 and the warrants are trading at $3.75. Now if I sell the warrants (instead of converting them), do I have a capital gains of $3.75 - $0.15 = $3.60 for each warrant? I assume it is a capital gains or is it deemed income for tax purposes? Next scenario is if I convert them instead and pay $1.25 for conversion to shares what happens with the difference between my total cost to acquire the shares ($0.15 + $1.25 = $1.40) and their present value ($5.00)? Am I taxable that year for any capital gains, any income (how much of each?) or am I only taxable the year I end up selling the shares? Lastly, when I end up selling these shares, let's say when their value is $10.00 what are my tax implications (capital gains vs income)? Sorry for the long question but I would like to know all tax implications in helping determine my best route to take. Thanks

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