BC PST on Marketplace Services – New Tax on Sellers
British Columbia is the last Canadian province to implement online platform rules to address e-commerce businesses. PST on marketplace services other provinces implemented similar rules from 2019 to 2021. However, there are important distinctions regarding the rules for the provincial sales tax (PST) in British Columbia and other provinces. For example, the BC PST on […]
How CPP/EI and GST/HST Applies to Restaurant Tips
If you are a restaurant owner, you know that you are required by law to deduct Canada Pension Plan (CPP) and employment insurance (EI) premiums from your employees’ earnings. What you may not realize, however, is that CPP/EI applies to restaurant tips as well, meaning that you also need to deduct these items from any […]
Ontario Provides Guidance On Electronic Monitoring Policies
The Ministry of Labour, Immigration, Training and Skills Development in Ontario provides guidance on electronic monitoring policies. While the ministry states that this is not a binding document under the law, it does provide helpful insight into the new requirements regarding employee electronic monitoring and what businesses must do to comply with the new rules, […]
Temporary Flat Rate Method: Canadian Employee Home Office Expenses for 2022
Due to the COVID-19 pandemic, many employees have been working from home, leading to speculation about whether they can deduct home office expenses on their personal income tax returns. In response, the Canada Revenue Agency (CRA) expanded the deduction for home expenses to more employees throughout the nation and provided a simplified method to make […]
GST HST Rebate Claims
If you have paid more than you owe in goods and services tax (GST), or harmonized sales tax (HST), you might be eligible to file a GST HST rebate claim with the Canada Revenue Agency (CRA). However, the process is not straightforward for many taxpayers. If you are unsure of how to claim your rebate […]
The Queen Vs. Paletta — Understanding The Source Of Income Test
A historic case for the Canada Revenue Agency (CRA) concluded earlier this year: the Queen vs. Paletta. This case reassessed the decision of the Tax Court of Canada regarding the taxation of Mr. Pasquale Paletta (named in the case as the Taxpayer). The Paletta estate and Canada’s source of income test are excellent examples of […]
Have You Received A GST/HST Audit After Already Being Audited For Income Tax?
Sales taxes, like the Goods and Services Tax and the Harmonized Sales Tax, are heavily relied upon by governments to generate revenue. As a result, business that survive an income tax or other audit often receive notice of a GST/HST tax audit. The Canada Revenue Agency (CRA) often uses risk assessment algorithms to audit businesses. […]
PSB Challenges When Providing Services Through A Corporation
A personal services business (PSB) is any person who provides services through a corporation rather than performing those services directly to the company as an employee. These services are usually those that an officer or employee would perform. A personal services business is also known as an “incorporated employee.” While the concept of a PSB […]
Is PayPal Income Taxable In Canada?
In 2017, the Federal Court of Canada ruled in favor of the Canada Revenue Agency (CRA), enabling them to acquire information from PayPal concerning its business account holders. Many individuals use PayPal, especially those operating online businesses, to easily and safely process payments. When individuals receive money through PayPal, it is necessary for them to […]
Hidden Taxes On Canadian Airline Tickets
Canada is infamous for having some of the most expensive flight prices in the world. There are a few factors that contribute to these high prices, including multiple types of taxes on Canadian airline tickets. Consumers should understand the taxes that are included in these airfares and how they can drastically raise the price of […]