PayPal ordered to provide CRA with information about Company accounts

PayPal has been arranged to offer the Canada Revenue Agency with information regarding its business account holders, as taxation officers search for companies that don't report their income.The business says a Federal Court order requires it to provide information regarding business accounts that received or received a payment between Jan. 1, 2014, and Nov. 10, 2017.It's not required to offer information regarding customers who have private PayPal accounts. Read more [...]

Ottawa, Ontario proceed to create peace with little business. Is it enough?

The Ontario and federal Liberals are discovering that, once lost, the love of small-business owners is hard to win back.But they are trying.Ontario Finance Minister Charles Sousa declared Tuesday in his autumn fiscal update that the government will cut the small-business tax rate by a percentage point, to 3.5 percent, on Jan. 1. Additionally, it will roll out $500-million in new programs for smaller businesses. It's no denying that this bundle of goodies Read more [...]

New disclosure form makes it easier for small Companies to compare loans

As alternative lenders for small businesses look to expand their market share in Canada, a number have banded together to bring more transparency to an industry sometimes criticized for taking advantage of borrowers.Seven non-bank lenders, acting within the newly minted Canadian Lenders Association, will shortly be using a standardized disclosure form which makes it easier for borrowers to determine how much they are actually paying for financing.Instead of having crucial information scattered Read more [...]

Five unanswered questions about the Liberals’ proposed small-business tax Affects

Small-business owners stay in limbo over how Ottawa's most recent proposed tax changes will affect their livelihoods. While the federal Liberal government recently removed a number of the contentious proposals tabled in July, there is still uncertainty around pending adjustments to income sprinkling and a cap on passive investments.Ottawa says it is moving ahead with plans to prevent income sprinkling for family members that aren't "meaningfully" leading to the company and promises to "simplify" Read more [...]

Tax changes spur small business owners to revisit retirement plans

Small business owners are revisiting their retirement plans after Ottawa updated its proposed tax changes for private corporations – and some say it means they'll be stuck working longer than expected. Ottawa dropped some controversial proposals amid a backlash from the small business community but said last week that it's moving ahead with plans to stop income sprinkling for family members not active in the business. It's also planning to put a higher tax on passive investment income that Read more [...]

Catch up on the latest federal government Taxation changes

It has been a week of near-daily policy statements on small-business taxes. Here's a summary with the newest: The national government will move forward on an election pledge to reduce the from 10.5percent by 2019 Strategies to prevent allowing income splitting for family members not active in a company will proceed; Finance Minister Bill Morneau said the proposal will be "simplified" The authorities won't move forward with proposed measures to restrict access to the Lifetime Capital Gains Read more [...]

Announced changes to passive investments Rare on detail

is an Spouse and taxation pioneer, private client services. On Oct. 18, two months after introducing the government's first tax-reform proposals, federal Finance Minister Bill Morneau announced updates to the suggestions on passive investments which were designed to raise the tax rates on the perceived misuse of private companies amassing funds and making passive investments. One thing was missing from Wednesday's announcement -- tangible specifics.The minister indicated that the government Read more [...]

Revised passive-income rules discourage small-business Development, critics say

Ottawa's updated proposal for taxing passive investments made through private businesses is far better than before but still does not go far enough, say some small-business owners and business experts.They argue that the proposal to more heavily tax passive income over $50,000 each year is only going to benefit small-business owners in the short term and is a disincentive for them to develop into larger businesses, at least in Canada."It is nice that they have a little bit of relief, but it probably Read more [...]

Tax cut receives a lukewarm welcome from small-business owners

Patrick Kerrigan certainly is not going to whine about Ottawa's strategy to lower his corporate taxation, but he says the struggle to protect his little family business from other, possibly punitive tax changes is far from over.The president of Alpha Poly Corp., a manufacturer of flexible packaging based in Brampton, Ont., sees the decrease in the national small-business tax rate to 9 percent from 10.5 percent declared this week as the fulfilment of an election campaign promise. Read more [...]

Minimum wage hikes can spur business owners to rethink how they Operate their Businesses

Together with the Ontario minimum wage jumped to $14 an hour in January, small business owners will need to begin taking a look at everything from pricing to staffing to maintain payroll pressures in check. The sharp increase in prices could scuttle some companies. If managed intelligently, however, some business owners could come out ahead."The intelligent business people may take this forced minimum wage, sick time and other things and really leverage it to their benefit," states Steve Burke, Read more [...]