Koroll & Company Blog

Like a sole proprietorship, partnerships are not seen as a separate entity and therefore do not file a separate tax return. Instead, the partners include their share of the partnership income/losses for the year on their personal, corporate or trust income tax returns.

Each partner also has to file financial statements or a Statement of Activities (i.e. Form T2125 - Statement of Business or Professional Activities). 

As a small business owner, it is important for you to understand your business and be accountable to the Canada Revenue Agency (CRA) who holds you responsible for reporting your business activity through tax returns and remittances.

To do this effectively, you must understand the necessary processes and the information you need to collect and retain. You must also understand the factors that impact the growth and success of your business. 

As of 2019, Canadian Controlled Private Corporations (CCPC) who were previously entitled to the Small Business Deduction may be subject to a claw-back that reduces their deduction, if it doesn’t eliminate it completely. 

If you are a small business owner, you have a lot of responsibilities – one of which is planning for the tax season so that you can optimize your after-tax position and have more money to put back into your business. 

As the holiday season rolls in, gifts become top of mind – for family, friends and even employees. As a business owner it is important to understand the rules governing gift giving so that you can optimize your after-tax position. 

Well-managed records are critical to the success of any company, but unfortunately, this is something that falls by the wayside for many businesses.

The problem is that poor record keeping often leads to missed opportunities and, when looking at taxes, your records can be the difference between you optimizing your tax return and paying substantially more than you ever should have. 

Every business owner in Canada is required to report business income when they file their taxes each year, and many of these business owners are also required to charge and remit sales tax on these revenues.

To do so, business owners, whether sole proprietorships, partnerships or corporations, are required to open a GST/HST account. 

Previously, we discussed proposed changes to passive investment income earned by private corporations detailed in the 2018 Federal Budget.

The changes proposed two new measures. The first is a reduction of the business limit for passive income earned over a specific threshold and the second will limit the refundability of taxes paid on investment income.