Congratulations. You’ve decided to start a business! In what has no doubt been an unsettling last few years of employment high and lows, more Canadians than ever are deciding to venture out on their own and forge their own paths through small business. There’s one thing that’s an essential when it comes to getting your venture off the ground. Your Business Number.
What’s a business number? Good question. According to the CRA:
The Business Number (BN) is a numbering system that simplifies and streamlines the way businesses deal with the federal government. It is based on the idea of one business, one number. Each business requires one BN for its legal entity. A legal entity is defined as a sole proprietor, partnership, corporation, trust or other organization.
It’s a 15 character identifier of your business. It has two parts; a nine digit number that identifies your legal entity, and a 6 character portion composed of letters and numbers that identifies the particular tax account. The nine digit number part of the Business Number never changes; the second part of the Business Number will change depending on which tax account the number refers to.
This number is the single key in dealing with the federal government on payroll, tax remittance, import/export activities, and a variety of other items. Your business number is what’s required to be referenced with the CRA when it comes to discussing the details about anything related to remittance, tax, or business activity subject to tax.
You need to register your business and get a business number. A good resource for this is the Canada Revenue Agency’s website. You can also contact us at www.accountingontrack.com and or call us at 416.454.8812 and we would be more than happy to help you setup and register your new business.
T2 Tax Return – Changes Affecting T2 Tax Returns
The Tax Season is upon us! As your Corporate Tax Accountant in Oakville and Mississauga, I have summarized the 2016 Income Tax changes, which may affect our clients’ T2 Tax Return (T2 Corporation Income Tax Return) one way or another, depending on your own situation of course. Feel free to call us at 416.454.8812 or email at firstname.lastname@example.org if you have any questions.
Corporate Taxes – T2 Corporation Income Tax Return
1- No Changes to the corporate tax rate
No changes have been proposed to the corporate tax rate on active business income, which is 15.5% during 2016. Unless there are further changes, any active business income generated during 2016 will be taxed at 15.5%.
2- Higher taxes on investment income inside corporation
There will be a 4% increase on corporate taxes on investment income earned inside a CCPC Canadian-controlled private corporation. This raises the corporate tax rate on investment income from 46.17% to 50.17%.
3- Higher taxes on dividend income inside professional corporation / holding company
There will be a 5% increase on corporate taxes on dividends received from most Canadian corporations. These taxes are refundable to the corporation if and when dividends are issued/paid to shareholders.
Canada Child Benefits
If you are in receipt of Canada Child Benefits you may be contacted by CRA and requested to support your eligibility or entitlement to these benefits. In general, there are three main topics of review:
1- Marital status
3- Primary caregiver
In most situations the documentation that will be requested is listed below. However, there are circumstances where the requested information will be specific to the individual’s situation and may not be included here.
T1 Tax Returns – Changes affecting your 2016 T1 Personal Tax Return
The Tax Season is upon us! As your Accountant in Oakville, I have summarized the 2016 Personal Income Tax changes, which may affect our clients’ T1 General (Personal Income Tax Returns) one way or another, depending on your own individual circumstances of course. Feel free to call us at 416.454.8812 or email at email@example.com if you have any questions.
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