Sidhu and Associates | Chartered Professional Accountant
CPA

Tax Accounting Blog

  • Tax Saving Strategies for Self-Employed Individuals

    • Rick Sidhu, CPA, CGA

    Every self-employed Canadian with an unincorporated business must file an individual tax return each year and report their income as business or professional income.Read More

  • Proposed Tax Changes Impacting Small Businesses

    • Rick Sidhu, CPA, CGA

    In the Federal Budget 2017, the Canadian government announced its intention to address specific tax planning strategies involving the use of private corporations – ones that can lead high-income individuals to gain tax advantages not available to most Canadians.Read More

  • Ways to Reduce Penalties and Interest on Your Tax Debt

    • Rick Sidhu, CPA, CGA

    Having tax debt is serious. Not only does the CRA have collection powers far greater than other creditors, but the penalty and interest on your tax debt can often exceed the tax you owe. Interest on tax debt is calculated at a prescribed rate, compounded daily, and applied retroactively from the filing due date, which can make the debt unmanageable. Read More

  • Business Income vs. Capital Gain

    • Rick Sidhu, CPA, CGA

    Is it business income or capital gain? The distinction is important because business income (or loss) gets included in income at 100%, whereas a capital gain (or loss) is only included in income at 50%. In other words, you would want to report losses on account of business, and gains on account of capital, to minimize your tax payable. Read More

  • RRSP vs. TFSA

    • Rick Sidhu, CPA, CGA

    Choosing between putting your money in a Registered Retirement Savings Plan (RRSP) or a Tax-Free Savings Account (TFSA) can be difficult. In the ideal world, you would want to max out both your RRSP and TFSA. However, it is often very difficult to be able to scrounge up the money to max out both accounts. So the question is, where should you put your money? Read More

  • Salary vs. Dividend: Which is better?

    • Rick Sidhu, CPA, CGA

    Over the years, tax professionals have questioned the traditional salary based remuneration strategy used to pay corporate small business owners or whether the withdrawals should be characterized as dividends, or a mix. Read More

  • Benefits of Incorporating your Business

    • Rick Sidhu, CPA, CGA

    Business owners can benefit from increased credibility to their business by choosing to incorporate their business. In the eye of vendors, suppliers, clients, and business partners, incorporated businesses appear more stable compared to unincorporated businesses. Additionally, through incorporating a business, business owners can benefit from the following Read More

  • Should you buy or lease a vehicle for business?

    • Rick Sidhu, CPA, CGA

    Should you buy or lease your business vehicle? Deciding whether to buy or lease a vehicle is a tough decision that business owners face. With many variables to consider, it is important to have all the facts when making this decision. Read More

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