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Tax Preparer

Tax Preparer

Tax Preparer

  Preparing Your Tax Return

Preparing your tax return can be a complicated process with all the different tax credits available to taxpayers. Tax laws continuously change and it has made it difficult for tax payers to keep up with these changes. At our firm we continuously attend CRA seminars and tax conferences to enhance our knowledge. This has allows our firm to deliver direct quality to our valued clients. We have licensed tax prepares who will professionally prepare your tax returns. Our accounting firm is located in Brampton, Ontario and services clients from Oakville, Mississauga, and Toronto. Contact our firm for all your tax preparation needs. We go the extra mile and optimize all tax returns to ensure you get the maximum refund possible.

Download our 2014/2015 Personal Tax Checklist:

 

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Helpful Resources:

  • If you have decided not to use a tax preparer this year for your taxes you should definitely visit all about your tax return to help you prepare  your return accurately
  • Students: are you moving to attend school? Buying textbooks? Paying tuition or student loan interest? Paying for child care? You could be eligible for a tax refund! Read about what you can include in your tax return if you are a student or recent graduate.
  • Canada Revenue Agency’s My Account connects you to your personal tax and benefits information 24 hours a day, 7 days a week, and allows you to check for your tax refund, check your Registered Retirement Savings Plan (RRSP) limit, track your GST/HST payments and change your address.

  Visit our Tax Centre for more helpful resources: 

Our Office Location:

Cheema & Associate CPA Professional Corporation is an accounting firm located in Brampton, Ontario at the main intersection of Kennedy Rd S and Clarence St. Our office address is 143 Clarence st. Suite 5, Brampton ON L6W 1T2.

Book An Appointment:

Book an appointment now using our online booking app.

Brampton Tax Accountants

Tax Accountant

Tax Accountant

Cheema & Assocaite – Your Local Brampton Tax Accountants 

Cheema & Associate CPA Professional Corporation is an accounting firm located in Brampton, Ontario at the main intersection of Kennedy Rd S and Clarence St. Our office address is 143 Clarence st. Suite 5, Brampton ON L6W 1T2.

We provide income tax services to all types of clients from Brampton. We have been serving the Brampton market for over three years. Tax has evolved over the years with strict regulations imposed by the Canada Revenue Agency. We can professionally prepare your tax returns while maximizing your refund by designing and catering unique tax planning strategies. Our professionals have experience in handling wide rage of unique tax returns. Contact us for your 2014 personal income tax returns.

Our Brampton tax accountants are dedicated in assisting you in all your income tax needs.

Personal Income Tax
Personal tax has evolved over the years with strict regulations imposed by the Canada Revenue Agency. Your local Brampton tax accountants can professionally prepare your tax return while maximizing your refund by designing and catering unique tax planning strategies. Our professionals have experience in handling wide rage of unique tax returns.

Corporate Tax
Our uniquely designed tax programs can assist you with complying with the complicated provisions of the Income Tax Act (ITA) while minimizing tax liabilities. We can structure your business to maximize profitability and minimize tax risks.Contact us for your 2014 corporate tax returns.

Audit & Appeal
Our team is dedicated to assist you in all your CRA appeals. We make sure that your company’s tax audit is handled smoothly and efficiently. We can assist you with the tax audit process – starting from the information gathering stage to negotiation with the tax authorities. We can also help in negotiating payments and even apply for interest or penalty relief.

Non-resident eligibility of child tax benefits and GST/HST rebate

Non-residents - Child Tax Benefits

Non-residents – Child Tax Benefits

Tracking Canadians emigrating to other parts of the word has become a serious challenge for the Canada Revenue Agency (CRA). Over the past several years the CRA has begun targeting non-residents claiming child tax benefits and GST/HST rebates. This has created confusion among taxpayers in determine if they qualify for these benefits while they are residents/non-residents. Although a taxpayer files tax returns as a resident, they still may not be eligible for the child tax benefits and GST/HST.

This is exactly what happened with a Calgary family living in China for the past several years and filing tax returns as residents. Although the tax returns were accepted by the CRA, they have still assessed the family with $18,000 tax bill for child tax benefits and gst/hst rebates for which the CRA claims they did not qualify for.

 

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CRA Auditing – HST New Housing Rebates

Goods and Services Tax/Harmonixed Sales Tax (GST/HST) New Housing Rebate

Goods and Services Tax/Harmonized Sales Tax (GST/HST) New Housing Rebate

The Canadian Market

The housing market in Toronto and the suburbs has been booming over the last several years. This has allowed investors from all over the world to cash in. The strategy was to purchase a newly constructed home or condominium unit from the builder and sell it a few months later for profit. This strategy seemed like people had finally figured out how to pull ahead in this struggling economy. For some this had even become a full time job with endless rewards. With the Canada Revenue Agency (CRA) only taxing half of the capital gain this was the right way to retain your money.

HST New Housing Rebate

With the CRA looking to increase tax revenues they started reviewing the New Housing Rebate applications  and determined a large number of people had claimed the GST/HST New Housing Rebate incorrectly. They were able to determine a large number of investors never even moved into the newly constructed property but they had sold it few months after they took possession. In this case they would not qualify for the rebate and they would be required to pay the HST balance to the CRA. A lot of investors had already sold the property and had failed to collect HST on the sale, which would mean they were still required to pay back the HST. This was a sticky situation with some investors on the hook for over $24,000. In some instances the CRA waited 3 years to reassess the taxpayer. Read more

What is a professional corporation?

Professional Corporation

Professional Corporation

What is a professional corporation? 

A professional corporation operates much like a business corporation with few exceptions. A professional corporation has to abide by the regulations set by the Business Corporations Act (Ontario) and by the respective governing body. A professional corporation  can-only carry on activities of its profession. A professional corporation must meet the requirements of its governing body and receive a Certificate of Authorization or equivalent.

Many professionals are allowed to operate their business as a professional corporation.  Examples of professions that can operate under a professional corporation:

 Accountants  Lawyers  Medical professionals
 Engineers  Architects  Social Workers
 Veterinarians  Pharmacists  Chiropractors

Historically professionals have operated through a sole proprietorship or partnership which limits tax planning  and results in higher taxes (see “How to setup a business in Ontario” for more in depth discussion). Professionals have lobbied the provincial governments which have allowed them to incorporate their practices.

Does a professional corporation have limited liability? 

In “How to setup a business in Ontario” we discussed that a corporation is a separate legal entity and it has limited liability. A professional corporation is slightly different and does NOT have full limited liability (exception for architects and engineers). A professional corporation only offers limited liability in certain areas. When it comes to business debts, the shareholder is only liable up to his or her investment in the business.  However, in other circumstances such as malpractice, the corporate veil is lifted resulting in unlimited liability.

 

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How to setup a business in Ontario?

What type of structure is right for you?

How to setup a business in Ontario?

Setting up a business can be an overwhelming task with a lot to comprehend. It all starts with a dream and a vision, but how do you turn that dream into reality. The dream of becoming your own boss and having the freedom to make your own decisions can be a complicated one at the beginning. Once you have determined on the actual business and its inner workings, you will have to move on to the next step of executing that business. This is where a lot of people get stuck and don’t really know where to go next.

In this article I will explore and shed light on several different business structures available in Ontario. I will also explain how to be in compliance with Canada Revenue Agency (CRA) tax obligations.

The three most common structures are Sole proprietorship, Partnership, and Incorporation.

Read more

Business Transfers To Family Members


family-325218_1920Inadequate Succession Planning

 

According to reports published by CIBC it is expected that 30% or close to 310,000 Canadian business owners will sell or transfer ownership of their businesses in the next five years. The growing number of transfers has a significant impact on the Canadian economy and predecessor owners.

The lack of effective tax planning and knowledge  has resulted in predecessor owners paying significant income tax. This directly affects retirement savings and future well-being.

Transferring Among Family members

Business owners might have family succession allowing them to transfer their family business to the next generation. This allows business to be kept in the family and continue to operate much like they did in the years before. However, section 84.1 of the Income Tax Act (ITA) creates a significant economic loss for the business owner if they decide to keep the business within the family.

The transfer of a business to a family member is administered through section 84 .1 of the ITA, which is in place to prevent tax evasion. In most cases this section of the ITA deprives the predecessor owner of the capital gains exemption, which can save thousands in taxes. This would make selling the business to a third party much more attractive because you can realize the capital gains exemption. Resulting in lower income tax for the business owner.

Section 84.1 has overly complicated the succession planning process. It hinders the business owners if they decide to keep the business in the family.

Recommendation

Like many other, The Canadian Chamber of Commerce has proposed that the federal government modify the ITA section 84.1 to “to facilitate  business transfers to family members and make this type of transfer at least as advantageous as transfers involving  unrelated third parties through the following measures”.

Read more

CRA – Business Tax Reminder’s App

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The App

When the Canada Revenue Agency (CRA) announced they were going to introduce a mobile app. I was very excited as it would allow me to access information on the go. I had expected they would add in an accountant component allowing me to access client records on the go (much like they did with My Business Account). However, the CRA introduced an app which works much like the calendar I use in Outlook.

The Mobile App allows users to add in their different CRA accounts and pop-up reminders of payments and due dates.

The Future of the APP

I would like to see the CRA connect the app to My Business Account allowing business owners to see information on the go. Read more

Tax Free Savings Account and benefits

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What is a Tax Free Savings Accountant (TFSA)
 
The Tax-Free Savings Account (TFSA) is a flexible, registered, general-purpose savings vehicle that allows Canadians
to earn tax-free investment income to more easily meet lifetime savings needs. The TFSA complements existing
registered savings plans like the Registered Retirement Savings Plans (RRSP) and the Registered Education Savings
Plans (RESP).
TSFA Contribution limit:
The TFSA was started in 2009 and has an accumulating contribution limit. Any individual who is at least 18 can open a
TFSA. The contribution limit was $5,000 from 2009 through 2012, but it has been increased to $5,500 in 2013. Unused
TSFA contribution room is carried forward to future years. Your contribution room will be indicated in your notice of
assessment. An individual that has never made contributions to the TFSA (assuming the person was at least 18 years old on January 1, 2009) will have total contribution limit of $25,500 on January 1, 2013. This is how the limit is calculated:
 
TFSA contribution room on January 1st, 2012                                  $20,000.00
MINUS:  Contributions made in 2012                                                                      $0.00
Unused TFSA contribution room at the end of 2012                                        $20,000.00
PLUS:  Withdrawals made in 2012                                                                          $0.00
PLUS: TFSA dollar limit for 2013                                                                       $5,500.00
Subtotal of withdrawals plus TFSA dollar limit                                                 $5,500.00
TFSA contribution room on January 1st, 2013                                   $25,500.00

Who is Required to File a Tax Return?

 Individuals must file a tax return if any of the following apply
 

 

Individuals must file a tax return if any of the following apply:
  • Taxpayer has taxes owning or wants to claim a refund
  • Taxpayer and their spouse or common-law partner elected to split pension income
  • Taxpayer received working income tax benefit (WITB) advance payments or wants to claim WITB
  • Taxpayer disposed of capital property or realized a taxable capital gain/taxable capital loss
  • Taxpayer has to repay old age security or employment insurance benefits
  • Taxpayer has not repaid all amounts withdrawn from your registered retirement savings plan (RRSP) under the Home Buyers’ Plan or the Lifelong Learning Plan
  • Taxpayer want to apply for the GST/HST credit
  • Taxpayer or spouse or common-law partner want to begin or continue receiving Canada child tax
  • benefit payments, including related provincial or territorial benefit payments. Read more