Tax, Tips and Traps with Ross + Sylvestre

The Q2 2018 issue of Tax, Tips, and Traps is now available. To read the full issue, please visit Ross + Sylvestre online Newsletter section on RSGroupCPA.com.

Tax Ticklers

SOME QUICK POINTS TO CONSIDER:
CRA has required PayPal to disclose sales and other transaction records for Business Account Holders from January 1, 2014 to November 10, 2017. It is expected CRA will review records for unreported sales.

Employers can now provide a tax-free party or social event to employees where the cost per person is $150 or less (the limit was previously $100).

Although such cases are rarely successful, two taxpayers were awarded nearly $1.7 million in relation to CRA’s malicious prosecution.

 

Digital Currency 

Digital Currency (DC) is essentially electronic money. It’s not available as bills or coins. Cryptocurrency is a type of DC created using computer algorithms; the most popular being bitcoin. DC can be used to buy goods and services; it can also be bought and sold on open exchanges (similar to a stock market). Like all currencies, its value is determined by how much people are willing to buy and sell it for. Find out how DC could impact you…

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Corporate Passive Investment Income: Proposed Changes  
A new passive investment tax regime for Canadian Controlled Private Corporations (CCPCs) is proposed to apply to taxation years commencing after 2018. Passive income may include interest, rental, royalties, dividends from portfolio investments and taxable capital gains.

Two significant changes are proposed. First, a limit to the small business deduction for CCPCs generating significant income from passive assets, and second, a new regime to stream the recovery of refundable tax to the payment of specific types of dividends (eligible versus non-eligible).

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Family Members: Can I Pay them a Salary?
For a small business, it is quite possible that relatives of the owners or partners may be engaged as employees. Due to the closer familial relationship between employer and employee, CRA pays particular attention to ensure that the salary is truly an eligible deduction to the business. The CRA has set out guidance and a reasonability test for paying family members employed by your business…

Click here to download the full issue.