Accountants Calgary do bookkeeping and accounting for other Calgary Accountants

CRA (Canada Revenue Agency) has a new Task Force in Calgary

1.  If you are a Personal Service Business... look out

Most people incorporate to get the Small Business Deduction on Corporate Tax.  But, if you are classified as a Personal Service business... you do NOT get it.  And, CRA is on the look out in Calgary.

For example: on every 100,000.00 Taxable Profit, you will owe approximately 14,000.00 extra, if you are deemed to be a Personal Service Business.  Whereas, other corporations save that amount because they are eligible for the Small Business Deduction.

What is a PSB?

Consider it this way, without the use of your corporation; you would generally be considered an employee.  In other words, your corporation is considered to be an Incorporated Employee.

2. Sub Contractors

Everyone in Canada has to file a T4, T4A, T5 (Dividend income) or T5018.

A T5018 is used for Sub Contractors - like a T4 on Employees.

CRA wants to track everyone.

If you do not produce T5018's on your Sub Contractors, you can be fined up to 10,000.00 so beware.