Bradley Jacoby Games Chartered Professional Accountants | Victoria, BC | 250-370-2191

Support of Refugees: Tax and Filing Requirements

Two Technical Interpretations (May 26 and March 3, 2017) considered whether support provided to a refugee would be required to be reported on a Form T5007, Statement of Benefits. Essentially, the CRA considered whether the support would constitute “social assistance” which would require a T5007. If the amount is not considered “social assistance”, no T5007 would be required. CRA opined that amounts would be considered “social assistance” if provided by a government or government agency,…

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Behind on Your Taxes? Breathe …
Are You Behind on Your Taxes? Breathe ...

Behind on Your Taxes? Breathe …

First of all, this can happen to ANYONE – falling behind on your taxes can strike people of any age, income, or education level. Somewhere along the way, between life events, they have missed sending various information to a creditor and/or Revenue Canada (or the IRS). To catch-up I suggest baby steps. My first recommendation, while it sounds easy, is HARD – stop, breathe deeply, think it through, and then do it. The key is…

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Business Loss or Personal Venture: Can You Deduct Losses Against Other Income?
Are you looking at a Business Loss or Personal Venture?

Business Loss or Personal Venture: Can You Deduct Losses Against Other Income?

In order for an individual to apply their business loss (where reasonable expenses exceed revenues) to another source of income such as employment earnings (thereby reducing the overall tax liability), the taxpayer must be able to prove that they are truly running a business. That is, they have to show that the undertaking was in the pursuit of profit.

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Employee Discounts on Merchandise: Change in CRA Policy
Employee Discounts on Merchandise: Change in CRA Policy

Employee Discounts on Merchandise: Change in CRA Policy

Historically, CRA has stated that an employee enjoying a discount on the purchase of merchandise from their employer is only taxable if a limited number of specified situations exist, such as where the employer makes a special arrangement with the employee or group of employees to buy the merchandise at a discount; the employee buys the merchandise for less than the employer's cost; or the employer makes a reciprocal arrangement with another employer so that the employees of one employer can buy merchandise from the other at a discount.

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Professionals’ Work in Progress Exclusion: Changes are Coming
Changes for Professionals' Work in Progress Exclusion

Professionals’ Work in Progress Exclusion: Changes are Coming

In the past, taxpayers in certain designated professions (i.e., accountants, dentists, lawyers, medical doctors, veterinarians and chiropractors) may have elected to exclude the value of work in progress (WIP) in computing their income for tax purposes. This essentially enabled these professionals to defer tax by permitting the costs associated with WIP to be expensed without including the matching revenues.

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