PDCA Consultant Inc. / Patrick Daniel, CPA, CA / Chartered Accountant

WHY HIRE A CPA?

TIPS

Here are some Tips that will help you save your hard-earned money.

BUSINESS START-UP

These are some of the most common mistakes made by start-up businesses. Let me help you avoid making these costly mistakes:

Failing to register for a GST/QST account on time. Loss of input tax credits;

Failing to put proper payroll procedures in place and registering for Deduction at Source government accounts. Loss of deductibility of salaries;

Picking the wrong type of organizational structure;

Failing to put shareholder and partnership agreements in place to avoid costly court disputes in the event of separation;

Selecting professional help whose fees are too high and therefore put a strain on the financial capabilities of the start up.

TAX TIPS - INDIVIDUALS

Here are some helpful pointers to help you save on taxes:

If you are self-employed and work from home, you may be entitled to deduct a portion of your house expenses;

If you are an employee required to work away from your office on a frequent basis, you may be entitled to deduct traveling costs such as your vehicle, fuel, insurance, etc…;

If you have recently graduated from Post-secondary studies, you may have unused tax tuition credits from previous years which can now be utilized;

Any money received in the form of 'Tips' are 100% taxable. It is advised that a written record be kept of all tips received during each fiscal year;

You are entitled to deduct medical expenses incurred during a 12 month period if the total amount of expenses is greater than 3% of your income or $2,152;

You may be entitled to receive 'Canada Child Tax Benefits' for each child under 18 years of age.

Individuals who own a home may be able to deduct Municipal and School taxes paid on their properties.

TAX TIPS - BUSINESSES

Here are some useful hints for your business in regards to some specific tax treatments:

All expenses incurred for the purpose of earning income is deductible for tax purposes;

Reduce taxable income by hiring family members;

Capital Assets, such as furniture, equipment & computers, are not 100% deductible in the first year. There are special tax treatments for deductibility of Capital Assets;

Meals and Entertainment costs incurred with a client or clients are 50% deductible;

Meals and Entertainment costs incurred for your office Christmas party are 100% deductible;

Registered Company cars given to employees may be a taxable benefit to the employee;

Certain corporations may be subject to a 16% income tax reduction.

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