Generally, under the Excise Tax Act every recipient of a taxable supply (other than a zero-rated supply) made in Canada is required to pay GST on the value of the consideration for the supply. Consideration is defined in the Act to include any amount payable by operation of law. The Act also provides that all taxes, duties or fees (other than the GST) imposed under an Act of Parliament in respect of a supply of property or a service and payable by the recipient of the supply, or payable/collectible by the supplier in respect of the supply or in respect of the production, importation, consumption or use of the property or service, are included in the consideration for the supply, for GST purposes.
Given the preceding, supplies (for example, sales) made in Canada of fossil fuels would generally be subject to GST, which would be calculated on the price paid for the supply of the fuel. This would include any fuel charge paid or payable in respect of the supply as well as any fuel charge embedded in the price as a result of having been paid earlier on in the distribution chain.
GST registrants are generally entitled to claim an input tax credit to recover the GST paid or payable in respect of the supply of property or a service acquired for consumption, use or supply in the course of commercial activities.
This is not as simple as it seems. In 2017 the life expectancy for the total Canadian population is projected to be 79 years for men and 83 years for women, so there may be many years you’re living alone on that income. Some of the situations are as follows:
Depending on the age of the surviving spouse:
Canada Pension Plan
If the survivor is:
Then the survivor’s
age 65 or more
60% of the contributor’s
retirement pension if the surviving spouse or common-law partner is not
receiving other CPP benefits
under age 65
a flat rate portion – this year that rate is $193.66 a month.
37.5% of the contributor’s retirement pension, if the surviving spouse or common-law partner is not receiving other CPP benefits
If the partner dies before applying for CPP, the CPP benefit is calculated based on what they have contributed so far in their working life, whether they’re 25 or 65. The survivor’s benefit is calculated based on that number — 60 percent if the survivor is 65 or over, 37.5 percent if they are under age 65.
If the family has children 18 or under, there is a monthly portion per child, currently $250.27 a month per child. Children aged 18 to 25 can also get this support if they are enrolled in post-secondary school, though they’ll have to prove their enrolment to the government each year.
if a couple is separated, it depends on whether the deceased spouse is living common-law with another person. If they are still legally married, the surviving spouse could get a share of the benefits, but if the deceased spouse was living with someone else, his or her common-law partner would get the benefits.
What ever your situation is, you will need to contact Service Canada to determine your survivor benefits.
The surviving spouse is responsible for applying for your monthly pension. If you are incapable of applying, you may have a representative (such as a trustee) apply for you.
You should apply as soon as possible after the contributor’s
death. If you delay, you may lose benefits. The Canada Pension Plan can only
make back payments for up to 12 months.
Don’t have QuickBooks Online? Download the App and Try it Free for 30 days.
Frequently Asked Questions
What kinds of things can I do with QuickBooks mobile?
You can do some of your most important QuickBooks activities: create, view, and email estimates, invoices, and sales receipts; access customer information; convert estimates to invoices, receive payments, track expenses, download and reconcile bank transactions, and use your custom QuickBooks Online forms.
Which operating systems are supported?
QuickBooks mobile currently supports iOS 8.0 and later, and Android OS 4.0 and later.
How much does it cost?
It’s FREE with your QuickBooks Online subscription
Can I try it before I subscribe to QuickBooks Online?
Yes! Please contact our office to sign up for your subsciption. See how QuickBooks Online works and how easy it is to use – on the web and on the go.
How do QuickBooks web and mobile work together?
QuickBooks mobile is syncs with QuickBooks Online on the web. Any task you do or information you add in the app shows in both places at the same time.
Can I do more in QuickBooks Online on the web than on mobile?
Yes, and we recommend that you do! It’s all part of your QuickBooks Online subscription, so please take advantage of all the features.
For instance, on the web you can customize your invoices and other forms, get access to over 20 reports, and give your accountant access so you’re ready for tax time.
Can I get insights about my business?
Yes, you can instantly see your:
·Profit & Loss report to see how your business is doing over time.
·Balance Sheet report for the list of your current asset, liability, and equity account balances.
How do I know my data is safe and my privacy is protected?
The same security that protects your QuickBooks Online data on the web applies when you use QuickBooks mobile. For more about how we protect your data, see our Online Security Center
The app uses TRUSTe certification program and keep your data and privacy safe.
GST registrants are required to calculate their net GST remittance or refund on a periodic basis – monthly, quarterly or annually, depending on sales volumes. Following each reporting period, a registrant must file a GST return and remit the net tax owing, orclaim a refund.
The reporting period is determined by the registrant’s “threshold amount” for a fiscal year or fiscal quarter. Detailed instructions on how to calculate these threshold amounts are included in paragraphs 35 through 40 of this memorandum.
Monthly – For registrants whose threshold amount for a fiscal year or fiscal quarter is greater than $6 million.
Quarterly – For registrants whose threshold amount for a fiscal year is $6 million or less.
Annually – Registrants whose threshold amount for a fiscal year does not exceed $500,000 may elect to file annually and pay quarterly installments.
At the time of registration, the Department will assign a reporting period based on the estimated annual taxable sales. The GST registrant can request an alternative reporting period by filing an election.
When you sell your principal residence, did you know that any profit (capital gain) may be exempt from taxes? In fact, if your home was your primary residence for every year that you owned it, you do not have to pay tax on the capital gain.
Your principal residence can be any of the following:
a house, cottage or condominium
an apartment in an apartment building or a duplex
a trailer, mobile home, or houseboat
In order for a property to qualify as your principal residence:
You must own, or jointly own the property.
You, your current or former spouse or common-law partner, or any of your children must have lived in the property at some time during the year.
To benefit from the principal residence exemption you must report the sale appropriately on your income tax and benefit return. How you do so can vary depending on whether the property you sold was your principal residence for the entire time you owned it. Only one property can be designated as a principal residence per tax year per family unit. A family unit includes you, your current or former spouse (or common-law partner) and any children under the age of 18.
Home buyers’ amount
You can claim the home buyers’ amount of up to $5,000 on your income tax and benefit return for a particular year if both of the following apply:
you did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or in any of the four preceding years (first-time home buyer).
You do not have to be a first-time home buyer if you are eligible for the disability tax credit or you acquired the home for the benefit of a related person who is eligible for the disability tax credit.
Eligible home buyers can complete line 369 of Schedule 1 of their income tax and benefit return.
Home Buyers’ Plan
You may be eligible to participate in the Home Buyers’ Plan which allows you to withdraw funds from your registered retirement savings plans (RRSPs) to buy or build a qualifying home for yourself. Budget 2019 proposes to increase the Home Buyers’ Plan withdrawal limit to $35,000, to provide first-time home buyers with greater access to their RRSP savings when purchasing a home. This amount is available for withdrawls made after March 19, 2019. Buyers have up to 15 years to repay the amounts they withdraw.
To qualify for the Home Buyers’ Plan, you have to meet these two conditions:
you are a first-time home buyer
you have a written agreement to buy or build a qualifying home for yourself
You are considered a first-time home buyer if, in the preceding four-year period, you did not live in a home that you or your spouse or common-law partner owned. You must intend to live in the qualifying home as your principal residence within one year of buying or building it.
Home Buyers’ Plan for persons with disabilities
You do not have to be a first-time home buyer to participate in the Home Buyers’ Plan if you are eligible for disability tax credit or if you are helping a related person who is eligible for the credit buy or build a home. The purchase or construction must be done to allow a person with a disability to live in a home that is more accessible or better suited to their needs.
GST/HST rebate on new homes in Canada
If you bought a newly constructed home from a builder, you may be able to claim a new housing rebate for some of the goods and services tax/harmonized sales tax (GST/HST) you paid.
If you constructed or substantially renovated a house for use as your primary place of residence, you may also be eligible for this rebate.
If you are a qualifying individual (65 years of age or older at the end of 2017 or eligible for the disability tax credit) or an eligible individual claiming certain tax credits for a qualifying individual, you may be able to claim eligible expenses paid for renovations that make your dwelling more accessible.
This tax-filing season, many important changes and improvements were made to services, benefits, and credits for Canadians. Here’s what you need to know:
New and improved credits
The Medical expense tax credit has been expanded to allow expenses related to service animals who are specially trained to perform specific tasks for a patient with a severe mental impairment that helps the patient cope with the impairment. Eligible expenses paid in 2018 include the cost of the animal, the care and maintenance of the animal (food and veterinary care), reasonable travel expenses paid for the patient to attend a school, institution, or other facility that trains in the handling of these animals, and reasonable board and lodging expenses paid for the patient’s full-time attendance at a school, institution, or other facility that trains in the handling of such animals.
The Climate Action Incentive (CAI)payment can be claimed by eligible individuals who are residents of Saskatchewan, Manitoba, Ontario or New Brunswick. A new Schedule 14 will be included with the T1 package for these jurisdictions; simply complete the new schedule to claim the amounts you may be entitled to based on your family composition, and indicate the amount on line 449 of your income tax and benefit return. The CAI payment will first reduce any balance owing, and may create or increase your refund. A 10% CAI supplement is available to residents of small and rural communities who live outside a Census Metropolitan Area (CMA), as defined by Statistics Canada.
View transactions and pay balances withMyCRA – This app lets you view and pay your account balance with your Visa® Debit, Debit MasterCard®, or Interac® Online debit card, and by pre-authorized debit, and at any Canada Post outlet for a fee by generating a quick response (QR) code.
Email notifications – In February 2019, CRA is merging Online mail and Account Alerts notifications and launching an improved email notification service. Once signed up for the service, you will now receive an email notification when eligible correspondence is available to view in My Account and MyCRA mobile web app or when there are important changes made to your account, such as an address or direct deposit update.
CRA modernized telephone service – The CRA telephone enquiries program has moved to a new telephone platform. Now when you call, you will receive an estimated wait time to speak with an agent. You can then, decide either to wait in the queue, call back later, or use our self-serve options. The new platform also includes call recording to improve accuracy, skills based routing to allow the caller to get to the right agent more quickly, as well as a range of other improvements.
ReFILE – Available in all tax software, the ReFILE service lets you change your tax return after you receive your notice of assessment.
The new all-in-one 2018 Income tax package – The CRA has made it easier for people who choose to file their taxes on paper to get everything they need to file their tax returns. The new 2018 Income tax package includes the General Income Tax and Benefit Guide, the Provincial or Territorial Information Guide, and two copies of the return and schedules (i.e., a working copy for your files and a copy to submit to the CRA).
Mailing a paper 2018 Income tax package to your home – The CRA will mail the new all-in-one 2018 Income tax package to Canadians who paper filed in the previous tax season. Those who want to file on paper and haven’t received a tax package from the CRA by February 11, 2019 can find what they need online or order a paper copy from the CRA. An order limit of nine packages per individual will ensure all Canadians have access to what they need this filing season. A limited number of tax packages will also be available for pick up at Canada Post, Service Canada, and some Caisse populaire Desjardins locations by February 18, 2019.
Protect your account withemail notifications – For added security, you can subscribe to have the CRA send you an email notifying you of recent activity on your account when a representative is added, deleted, or changed on your account.
Tax filing services for northern residents – As part of the Northern Service Improvement Strategy, three new CRA Northern Service Centres were announced in August 2018, which will provide a year-round physical presence to support individuals and businesses in Yukon, Northwest Territories and Nunavut starting mid-February 2019.
My Account redesign – A redesign of My Account was launched in October 2018 that allows users to quickly view their tax and benefit information and easily update their personal information with the CRA.
Pay taxes in person at Canada Post – You can pay your individual tax, benefits and credits repayments, and most business payments to the CRA in person with cash or a debit card at any Canada Post outlet for a fee. To pay in person, bring your remittance voucher containing a QR code or create a personalized QR code online.
Express NOA – If you file electronically, you will be able to view your notice of assessment (NOA) right after your return has been received and processed by the CRA. This means that you will know right away what your refund will be or if you need to pay. To use the service, you must be registered for online mail.
File my Return – Eligible individuals with low or fixed income will be invited to file their income tax and benefit returns through an automated phone service.
Auto-fill my return – Using your tax software, you will be able to automatically fill in parts of your return. To use the service, you must be registered for My Account.
Do you or your employees use their personal vehicles for work-related travel? If so, you may provide them with an automobile or motor vehicle allowance to help cover expenses.
What is an automobile or motor vehicle allowance?
An automobile or motor vehicle allowance is any payment that you give your employees for using their own vehicle in connection with their employment. This payment forms part of their salary or wages. An allowance is a taxable benefit to your employees unless it is based on a reasonable per-kilometre rate.What are your responsibilities.
Determine if the allowance is reasonable
The Canada Revenue Agency (CRA) considers an allowance to be reasonable if the allowance is based only on the number of business kilometres driven in a year and if the per-kilometre rate is reasonable. Generally, a reasonable per-kilometre rate is one that is designed to cover an employee’s out-of-pocket costs.
What is a reasonable amount:
For 2019, a reasonable rate is 58 cents per kilometre for the first 5,000 kilometres driven and 52 cents/km after that. In the territories, the rate is 4 cents/km higher.
For 2018, a reasonable rate is 55 cents per kilometre for the first 5,000 kilometres driven and 49 cents/km after that. In the territories, the rate is 4 cents/km higher.
If the allowance is reasonable:
If you pay your employees an allowance that the CRA considers reasonable, do not include this amount as income on their T4. You also do not deduct CPP contributions, EI premiums, or income tax from the allowance.
If the allowance is unreasonable:
If you pay your employees an allowance that the CRA considers unreasonable, because it is either too low or too high, it is a taxable benefit. You will need to complete the following steps:
Include the amount of the allowance in your employee’s income.
Calculate payroll deductions (CPP deductions, EI premiums and income tax).
Prepare and file T4 slips for your employees.
Provide your employee with aForm T2200, if required
Where allowances are included in income, the employee may be entitled to deduct motor vehicle employment expenses. In order to deduct these expenses, the allowance must be included in income, and the employee must obtain a completed Form T2200, Declaration of Conditions of Employment, from you. The deduction of motor vehicle employment expenses is usually limited to situations where, the employee was required to carry out the duties of employment away from the employer’s regular place of business or in multiple locations.
Where can you find more information?
To assist you in determining the taxability of a benefit, the payroll deductions you have to withhold, and how to report the amount on an information slip, the CRA publishes the following guides:
Registering for a CRA program account will get you a business number if you don’t already have one. If you already have a business number, the CRA program account will be added to your business number. Your business will only ever have 1 business number.
Our firm will be instituting a new tax audit insurance program. This will give our clients the opportunity to purchase Audit Shield Insurance to help cover any potential costs associated from audit queries from the tax department.
What is audit activity?
Audit activity includes any audit, inquiry, investigation or review which is instigated by the Canada Revenue Agency (CRA)and other provincial agencies to ensure business and taxpayer compliance with various tax and legislative requirements such as Personal Tax, Business Audits, Payroll Audits, GST and Capital Gains Tax, amongst others.
How common are audits, enquiries, investigations
The CRA and other government revenue bodies
continue to focus on review and audit activity. These agencies are consistently
provided with resources for this purpose.
the Audit Shield Fee Waiver Service? Why should I consider it?
Our firm’s Audit Shield Fee Waiver Service provides for the
payment of professional fees incurred as a result of your filed return being
selected for an audit, enquiry, investigation or review. The cost of being
properly represented in these matters can be quite significant. Even if no
adjustments are required, you could still be left with considerable
professional fees if you are not protected by Audit Shield. It provides a
fixed, cost effective solution to guard against these unbudgeted costs.
Who provides the Audit Shield Fee Waiver Service?
Audit Shield is provided by our accounting firm and we hold an
Audit Shield insurance policy (underwritten by Lloyds) which mirrors this
What filed returns/financial compliance
obligations are covered?
Audits and reviews instigated
by Provincial Agencies such as PST
Capital Gains Tax
Corporate Tax – full and area
Employer Audit Program
Employer Compliance Audits
Payroll Audits (T4)
Personal Tax (post Assessment
Is the cost tax deductible? Yes, a tax deduction can be ordinarily claimed for your Audit Shield Fee Waiver Service.
Who is covered? All of our clients are invited to
participate in the Audit Shield Fee Waive Service. Different levels of cover
are available for T1s and businesses. In most cases individuals and other
family entities can be covered with the business entities – for no extra cost.
If you decide to participate, your cover commences one business day after your
payment is received.
Is it mandatory to participate in the Audit
No, Audit Shield is an option our accounting firm provides to you,
our client. You have the opportunity to participate in or decline the offer.
What do I need to do to participate?
Please contact one of our friendly team members to discuss your participation and to arrange an acceptance form to be sent to you.