Entrepreneurship & Small Business

Taxation - answering any questions here

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  • Oct 27th, 2020 8:17 pm
Newbie
Jan 27, 2012
11 posts
1 upvote
TORONTO
Hi I am a consultant in IT for gov. How much do you charge for corp tax? Do you work for remote clients? thanks
[OP]
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Oct 30, 2017
219 posts
62 upvotes
Ottawa, Ontario
tiki16 wrote: Hi I am a consultant in IT for gov. How much do you charge for corp tax? Do you work for remote clients? thanks
hi, I do remote for my toronto or montreal clients.
can you contact me in private for more detail of my pricing and what service I offer? you can send me a private message, leaving your contact and we can discuss in more detail
thank you very much
Philip Kwok, CPA, CGA
[OP]
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Oct 30, 2017
219 posts
62 upvotes
Ottawa, Ontario
tiki16 wrote: Hi I am a consultant in IT for gov. How much do you charge for corp tax? Do you work for remote clients? thanks
hey tiki16, did you receive my message?
thank you very much
Philip Kwok, CPA, CGA
Newbie
Sep 26, 2020
2 posts
Hi,

I have a Canadian corporation doing dropshipping with Shopify. The t-shirts are produced and printed in the USA. If someone from Ontario orders a shirt, do I have to charge the Ontario sales taxes, even if the shirt is shipped from USA? But no tax for customers outside of Canada?

Thanks
[OP]
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User avatar
Oct 30, 2017
219 posts
62 upvotes
Ottawa, Ontario
jonn87 wrote: Hi,

I have a Canadian corporation doing dropshipping with Shopify. The t-shirts are produced and printed in the USA. If someone from Ontario orders a shirt, do I have to charge the Ontario sales taxes, even if the shirt is shipped from USA? But no tax for customers outside of Canada?

Thanks
it is not about where it is shipping from, it is because you are in Canada, earning income from Canadian, per CRA, if a Canadian business earn more than $30000 worldwide revenue in the last 12 months, they need to charge sales tax. So, if that is the case for you, then yes.

if you need more help for corporate tax or sales tax, private message me and I will help you in more detail
thank you very much
Philip Kwok, CPA, CGA
Newbie
Sep 26, 2020
2 posts
PhilipK796978 wrote: it is not about where it is shipping from, it is because you are in Canada, earning income from Canadian, per CRA, if a Canadian business earn more than $30000 worldwide revenue in the last 12 months, they need to charge sales tax. So, if that is the case for you, then yes.

if you need more help for corporate tax or sales tax, private message me and I will help you in more detail
So if I earn more than $30k I have to charge the taxes (including provincial tax) but only for orders from Canada?

Thanks for the answer.
[OP]
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Oct 30, 2017
219 posts
62 upvotes
Ottawa, Ontario
jonn87 wrote: So if I earn more than $30k I have to charge the taxes (including provincial tax) but only for orders from Canada?

Thanks for the answer.
if your total sales over $30000, yes you need to charge Canadian customers sales tax
thank you very much
Philip Kwok, CPA, CGA
Newbie
Sep 14, 2020
5 posts
Hi Again,

New question from me here. I have a small startup company with 4 new young employees and several more coming over the next months. I am loathe to purchase new employment infrastructure for these people since they already have a lot of the stuff they need (phone, computer gear, desk and chair). Some were actually former contractors of mine so they needed the stuff anyway. The hardware they already own is likely of higher quality than what I would purchase for them as well. So I am a big fan of "Bring Your Own X" where X is chair, computer, phone, etc. Now they would deserve to compensated in some way for employment use of their personal property. I have considered a few options:
- Simply require them to provide their own stuff, and pay them a better wage but without anything formally tying the wage to the BYO-Stuff policy.
- Pay them a formal allowance for such items (eg $x / year)
- Reimburse a % as an expense.
- Rent the equipment from the employees for their use at work.

At the end of the day, all I manage to do with these options is confuse myself. I believe the answer comes down to what is the most tax-efficient overall, for both employer and employee considering both income and HST taxes. Any advice you could provide on this would be appreciated.

Thank you, Paul
[OP]
Member
User avatar
Oct 30, 2017
219 posts
62 upvotes
Ottawa, Ontario
paupat wrote: Hi Again,

New question from me here. I have a small startup company with 4 new young employees and several more coming over the next months. I am loathe to purchase new employment infrastructure for these people since they already have a lot of the stuff they need (phone, computer gear, desk and chair). Some were actually former contractors of mine so they needed the stuff anyway. The hardware they already own is likely of higher quality than what I would purchase for them as well. So I am a big fan of "Bring Your Own X" where X is chair, computer, phone, etc. Now they would deserve to compensated in some way for employment use of their personal property. I have considered a few options:
- Simply require them to provide their own stuff, and pay them a better wage but without anything formally tying the wage to the BYO-Stuff policy.
- Pay them a formal allowance for such items (eg $x / year)
- Reimburse a % as an expense.
- Rent the equipment from the employees for their use at work.

At the end of the day, all I manage to do with these options is confuse myself. I believe the answer comes down to what is the most tax-efficient overall, for both employer and employee considering both income and HST taxes. Any advice you could provide on this would be appreciated.

Thank you, Paul
if these staffs will need to pay for their equipments, come and work job by job, they can consider as "subcontractor" and it will be the cheapers for you because you can save on cpp, ei.
thank you very much
Philip Kwok, CPA, CGA
Newbie
Sep 14, 2020
5 posts
Thanks but that's not an option. They are funded positions and must be regular full time employees according to the funding agency.

My understanding of BYOD is that
-If I offer an allowance for phone, computer or other equipment, it is a taxable benefit which penalizes the employee, and I cannot capture the ITC either. This is exactly the same as just paying the employee a bit more.
-If I offer a reimbursement of a phone plan, that can work as a business expense for me and is not a taxable benefit for the employee. So this is all good. However, this is limited to phone plans only and only for a basic package (meant to cover only the business portion of phone usage).

My current view is that the only viable way to do this is to offer a phone plan reimbursement, capped at about $50/mo. This is $1800 tax free over 3 years and should cover a basic phone, computer and chair. What do you think?
Deal Addict
Jan 24, 2006
1821 posts
13 upvotes
Just opened a business in Toronto January and I use to do my own personal taxes, however, it can be complicated now being incorporated. Wondering if I should get a tax accountant, if so anyone know a good one in Toronto?
[OP]
Member
User avatar
Oct 30, 2017
219 posts
62 upvotes
Ottawa, Ontario
jayslay wrote: Just opened a business in Toronto January and I use to do my own personal taxes, however, it can be complicated now being incorporated. Wondering if I should get a tax accountant, if so anyone know a good one in Toronto?
that depends, the size of book you have, and how compliate it is. Normally is better to hire somebody because T2 is harder than a T1 small business. Toronto I don't know, I am in Ottawa
thank you very much
Philip Kwok, CPA, CGA
Newbie
May 1, 2017
18 posts
4 upvotes
Hi Philip,

Lots of great info here - thanks to people like you offering your time and hlep!

Some confusion surrounding my situation and hope you can please help. I work for the Ontario government (Ontario Public Service) and with each paycheque, I see money being deducted to pay union dues.

On my T4, I see in Box 44 an amount of $XXX. I understand I can claim this amount for Line 21200 (annual union, professional, or like dues) but can I also claim it for Line 45700 (Employee and partner GST/HST rebate)?

When I read the tax guide, it notes:

"Generally, you can claim this rebate if one of the following applies:

- your employer is a GST/HST registrant, other than a listed financial institution
- you are a member of a GST/HST-registered partnership, and you have reported on your return your share of the income from that partnership"

Of the two bullet points, really only the first would have any applicability, if at all...but I'm not too sure if my employer (the Ontario government) is a GST/HST registrant - I've tried asking the admin folks but have not gotten any solid answers. Would you happen to know? If so, would I need to complete Form GST370 and is there anything else needed to do? Many thanks!!!
Deal Addict
User avatar
Dec 13, 2016
3482 posts
2940 upvotes
I have been a non resident for tax purposes for about 5 years. I own a condo in Toronto which I have been renting out and remitting 25% tax to the government.

I want to fly back to Canada and move into this condo which is my only property. If I decide to sell it in 2021 will I have to submit the non resident paperwork where cra will retain 25% of gross sale or can I sell it normally and just pay the capital gains in 2022. I fully indend to re-establish Canadian residency and file an election that I'm moving back into my condo in January 2021.

Please if you can answer this I'd appreciate it.
[OP]
Member
User avatar
Oct 30, 2017
219 posts
62 upvotes
Ottawa, Ontario
Grazzhopper wrote: Hi Philip,

Lots of great info here - thanks to people like you offering your time and hlep!

Some confusion surrounding my situation and hope you can please help. I work for the Ontario government (Ontario Public Service) and with each paycheque, I see money being deducted to pay union dues.

On my T4, I see in Box 44 an amount of $XXX. I understand I can claim this amount for Line 21200 (annual union, professional, or like dues) but can I also claim it for Line 45700 (Employee and partner GST/HST rebate)?

When I read the tax guide, it notes:

"Generally, you can claim this rebate if one of the following applies:

- your employer is a GST/HST registrant, other than a listed financial institution
- you are a member of a GST/HST-registered partnership, and you have reported on your return your share of the income from that partnership"

Of the two bullet points, really only the first would have any applicability, if at all...but I'm not too sure if my employer (the Ontario government) is a GST/HST registrant - I've tried asking the admin folks but have not gotten any solid answers. Would you happen to know? If so, would I need to complete Form GST370 and is there anything else needed to do? Many thanks!!!
you can only claim the HST portion if the entity are HST registrater and charging HST for this services, but I doubt that.
thank you very much
Philip Kwok, CPA, CGA

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