Koroll & Company Blog

The year is almost over and that means you might need to make some last-minute decisions about your Tax-Free Savings Account (TFSA). 

TFSAs began in 2009 and are a savings tool that allow Canadians 18 and over to earn tax-free investment income. Unlike certain registered savings plans, there are no limitations on what the funds in a TFSA can be used for.

Income splitting is a useful tax planning strategy that lets you move income from someone in a higher tax bracket to a family member in a lower tax bracket. This helps lower your overall family tax obligation.  

There are attribution rules that prevent Canadians from simply gifting money to spouses to substantially reduce tax owing but there are legitimate ways to give money to your spouse for income splitting purposes that are allowed.  

With COVID restrictions being lifted and capacity limits increasing at restaurants, bars and other food and drink establishments, many businesses may be reconsidering their holiday celebrations with staff this year. 

But before you start planning, remember these four important business tax rules for holiday parties and gift giving in Ontario:

When filing for your most recent wage subsidies you may have noticed that there are now two sources of funding – the previous Canadian Emergency Wage Subsidy (CEWS) and the new Canada Recovery Hiring Program (CRHP). So, which is best for your business?

If you have set up shop in Ontario and only sell to customers in Ontario, sales tax is straightforward. But what happens when you start shipping goods to other provinces that have different rates of HST or use GST and PST instead? Your business tax starts to become more complex!

When an employee gets paid, deductions are taken at the source and remitted to the government. This includes CPP contributions that entitle them to the Canada Pension Plan in their senior years, income tax, and Employment Insurance (EI). 

Canada’s Employment Insurance program provides regular benefits to individuals who lose their jobs and can’t find a new one but are still available and able to work. 

This program is funded by contributions you and your employee make. Employees pay 5/12 of the total contributions and employers pay 7/12 (or 1.4 times the employee contribution). 

Summer is still going strong, but the school year is also fast approaching and that means many post-secondary school students and their families are looking at ways to cut the costs of further education.  

While certain costs (like personal and living expenses) aren’t eligible for any tax breaks, there are tax deductions and credits still available to students and their families. The most beneficial, and substantial, is the tuition tax credit.