GTA Accounting Insights

Category: Tax Audit

4 Important Things to Know About Canada/U.S. Cross Border Taxation

Canada and the United States face unique and complex tax issues due to cross-border activities, such as financings, benefits, and losses. Tax legislation and regulations for cross-border taxation must be complied with to ensure dealings are structured so that you can maximize your tax efficiencies and minimize tax liabilities. A non-compliance has the potential to…
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What Are Some Tax Breaks You Can Get As A Newcomer in Canada?

Canada’s tax system is somewhat complex and puzzling for some citizens, especially newcomers. Recent immigrants may find some difficulties when they first arrive. Depending on their tax situation and family structure, some new citizens may get tax breaks only if they are eligible. There are some benefits that these newcomers can claim. To help them…
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How Are Cross Border Taxes Assessed for American Citizens Working in Canada?

The united states tax system is said to be one of the most complex tax systems of all time. There are some fundamental differences between the US and Canada regarding their taxation. The US citizens have different income tax issues arising from employment in Canada. In this article, we will explain how are cross-border taxes…
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What is the Difference Between Factual and Deemed Residence and How Does It Affect Cross Border Taxes?

Residency is a crucial matter for the Canadian tax system. Residents of Canada must declare all their income and pay taxes on it. At the same time, the non-residents are only taxed on their Canadian-sourced income. Therefore, residency status is essential to determine your tax liability in Canada. This is why we will discuss the…
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How to Reduce Double Taxation by Using U.S./Canada Cross Border Income Tax Treaty?

The U.S./Canada border income tax treaty solves the primary problem of paying taxes for citizens living in a foreign country. This tax treaty helps reduce double taxation as the citizens are no longer required to pay taxes in a foreign country. Let’s understand it with the help of an example. Suppose you’re a Canadian citizen…
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How to Prepare and File Corporate Taxes in Toronto?

Being a businessman is great, especially when your business is generating a good amount of profit. But we all know that nobody can become successful overnight. You might have worked so hard for your business to make it successful and achieve financial freedom. However, running your business is just one part of it. The second,…
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Is SaaS (Software as a Service) Taxable in Canada?

It has been predicted that many of the organizations would shift their apps to the SaaS model. Gartner estimated a spike of 23%, which means an increase of $72billion in the year 2018 Firstly, we have to look at the definition of a SaaS model. SaaS model is one in which software is hosted in…
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CRA Tax audit procedure

Tax audits are about the last thing you happening to you, it is a frightening experience and it can also be very costly. CRA auditors will seek your books, records, receipts, and bank account statement. Questionnaires could be asked to be filled out, and any declared information that is wrong regardless if it was due…
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Tax Avoidance & Tax Planning – General Anti-Avoidance Rule

As a Canadian taxpayer, you need to be aware of the GAAR. Introduced in 1988, this rule allows the tax authorities to target and deal with people who are abusing or avoiding the Canadian taxation system. While many businesses focus on tax planning in order to save money, they may just find themselves being caught…
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What is VDP or Voluntary Disclosure Program

Basically, what Voluntary Disclosure Program offers is another chance to correct your taxes. It accords you an opportunity to rectify that previously filed inaccurate return or to file a return you ought to have filed. When a filed VDP appeal gets approval from the CRA, you are required to clear the unsettled tax in addition to…
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