2020 has been an anomaly in terms of filing due dates and paying your tax bill.
Allen Koroll
Recent Posts
When COVID began and businesses with retail locations were shutting down, more and more Canadians headed online to do their shopping. Now stores are beginning to open back up, and that is good news! But some consumers are sticking to online shopping to minimize their exposure or have decided the conveniences make sense.
But online shopping can have it’s risks …
Owning a business can be a lot of work. You’re a wearer of many hats.
And because you’re so busy focusing on marketing, scheduling and getting the day-to day business done, sometimes you drop the ball on other areas … for most businesses this tends to be bookkeeping and tax planning.
We recently talked about the importance of a mid year financial and tax check up. This included making sure your 2019 tax obligations were up to date and making any necessary adjustments to your return.
But this time of year is also a good time to take stock of your 2020 tax situation so that you can be prepared come year end.
Earlier this year the provincial government announced an additional relief measure to support businesses. This included increasing the exemption on Employer Health Tax from $490,000 to $1 million. The exemption will return to $490,00 on January 1, 2021. It will be further adjusted based on inflation in 2024. They are also providing 5 months of relief to businesses that are not able to file/remit their taxes. Today we are going to provide some clarity about EHT and whether you need to file it.
Most taxpayers are now filing their tax returns online. While this is convenient for taxpayers it means that the Canada Revenue Agency (CRA) doesn’t receive the paperwork to back up the returns being filed.
For this reason, the CRA conducts post-assessment review to verify the validity of returns, offset risks and catch any mistakes, whether accidental or purposeful.
Most Canadian taxpayers will have filed their 2019 income taxes by now, and likely received the Notice of Assessment which summarizes their tax situation for the year.
At this point in time, you have made half of your years’ worth of payments toward your income taxes for 2020 through deductions taken at source from each of your paycheques. In addition, you’ll have incurred 6 months’ worth of expenses, some of which will result in tax credits, benefits and deductions that can offset your tax owing come the next tax filing season.
When you buy a home in Canada, you are only required to make a minimum payment of 5%. There is however one stipulation. If your down payment is less than 20%, you must obtain mortgage default insurance from the Canada Mortgage and Housing Corporation (CMHC).
