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10

A few key points: (1) Don't try to justify to yourself not reporting income to the CRA. If you have an obligation, file it, whether or not you expect to be caught for failure to file. (2) If the bank issues a T5 to you, they also issue one to the CRA. This isn't an issue of the CRA 'looking into your bank account', the bank has an obligation to provide ...


7

Maybe just put all his correspondence back in the Post Box and mark it "Wrong address"? Precisely. Without opening. Just tell the postman that that person doesn't live there and have it returned to sender. The Revenue will figure it out. Most definitely do not accept any certified or registered mail not addressed to you personally.


6

You would be very well advised to consult with an actual lawyer on this matter. For tax purposes, if your T4s are inaccurate and you cannot get accurate ones, Intuit recommends filing your tax return with the correct (actually paid) information. However, since this will not match what's on the T4, it is near certainty that you will end up being audited, at ...


5

I personally don't think submitting early is going to make a difference. While the exact process of selecting who to audit will always remain secret, it's obvious that certain things will make your tax return more likely to get flagged for potential audit. Large charitable donations would be one of those things. I strongly recommend you do not send your ...


4

Your freelance income will not qualify you for the work-from-home deductions, for that you would need a T2200 form signed by your employer. But, you are allowed to be self employed as a sole-proprietorship while still being an employee of another company. If you take that route, you'll be able to write-off even more expenses than those you linked to. Things ...


4

Yes, this extra income would be taxed at your marginal rate because it is increasing your total income. This does not necessarily apply to all income, however. Capital gains are taxed at a different rate. Depending on the amount of extra work, you may wish to consider setting up a corporation. Corporations are taxed entirely differently. This would also ...


4

Modified version of now-deleted comment Chris Rea points out that Canada taxes world-wide income (as does the US). Thus, you should be reporting the interest earned each year on your annual tax return and paying taxes on that. When you convert these monies from INR to CAD for the purpose of bringing them back to Canada is irrelevant as far as the taxation ...


4

Just the principal contribution counts towards the limit. In your example, if you contribute 30,000 and you earn 20,000, only the 30,000 counts. To find out exactly how much room you have, you can log into CRA's MyAccount and it will tell you: http://www.cra-arc.gc.ca/esrvc-srvce/tx/ndvdls/myccnt/menu-eng.html


3

They keep records on all interactions with you. It is quite unlikely that they will discover it on their own as you are using the numbers they generated so they are unlikely to recheck their conclusions as the inputs that led to those conclusions haven't changed. As to whether you should bring it to their attention, that's up to you. Consequence-wise it'...


3

Yes pension income is taxed at your marginal rate, and you may be able to claim a $2,000 pension deduction. In addition pension income can be split with a spouse or common law partner by electing so on your tax return. When you begin to receive pension income from work the employers pension administrator will have you fill out a TD1 Form Federal and ...


3

You don't necessarily use this to approximate expenses. You use it to determine the maximum tax credit you could receive for work-related expenses under this part of the tax code. According to the examples listed on the page you linked (look immediately below the passage you quoted), you first look up the maximum employment amount by year. For 2012, it was $...


3

Yes, the extra matching contribution your employer puts into your group RRSP plan is considered employment income and so yes it would be included in the income reported on your T4. However, you should also receive from your RRSP plan administrator a contribution receipt, and the amount on that receipt should include both your contributions and the $500. ...


3

In Ontario, common law marriage requires 3 years of cohabitation, and doesn't give rights to property (which remains separate). I'd say in your situation you can still file as single, but I'd suggest asking your tax accountant to be sure.


3

IMPORTANT NOTE: Total Ordinary Dividends (Box 1a) includes Qualified Dividends (Box 1b). So don't sum them. Your income for Canadian tax purposes is the Total Ordinary Dividends only. Qualified dividends are singled in the US out so that they can be taxed at the lower capital gains rate, but for Canadian tax purposes qualified dividends receive no special ...


3

No. A business may have depreciable assets but is not itself a depreciable asset. A business is an investment.


3

Are you allowed to deduct the $1000 from $1400? No, you can only deduct from the $1,400 of rental income those expenses that are related to the rental activity. If paying a mortgage you could deduct the mortgage interest, and you could deduct insurance, HOA fees, property taxes, repair costs, etc. You'd also depreciate the condo and deduct that expense ...


2

The difference between the provincial/territorial low and high corporate income tax rates is clear if you read through the page you linked: Lower rate The lower rate applies to the income eligible for the federal small business deduction. One component of the small business deduction is the business limit. Some provinces or territories choose to ...


2

You state that you will be using your Canadian bank account(s) to receive payment for goods and services sold outside Canada. There are two reasons for you to be filing your taxes in Canada: 1- What if a entity within Canada decides to purchase your software? Canada Revenue Agency says: income from providing services in Canada other than in the course ...


2

Here's the best explanation I found relating to why your T4 box 39 might not have an amount filled in, even when box 38 has one: Department of Finance – Explanatory Notes Relating to the Income Tax Act [...]. It's a long document, but here's the part I believe relevant, with my emphasis: Employee Stock Options ITA 110(1) [...] Paragraph 110(...


2

You can withdraw from your RRSP to pay your taxes. While not necessarily advisable, it is permitted — yet the tax consequences are no different just because you happen to be using the money to pay a prior year's income tax balance due. When you make the withdrawal from your RRSP, an amount will be withheld towards your income tax for the withdrawal ...


2

If the correction results in you owing them money, you typically just need to pay them the appropriate amount. I believe they charge back-dated interest on the amount if it was supposed to have been paid in the past, but if it's for this year's taxes then payment isn't due until the end of April and so interest would not apply. In some circumstances, they ...


2

CRA suggests keeping them for 6 years : http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/kpng/menu-eng.html


2

Intuit has a pretty good write-up on this subject. As you noted, you are allowed to exceed your limit by $2000 (though this overcontribution is not tax-deductible). Also, your contribution room accumulates. So, you may be able to contribute $18k for the 2015 tax year, but if you have unused space from previous tax years, you can make use of that, too. If ...


2

The folks at CRA are astonishingly helpful. As in you get off the phone and say to yourself "was that really a government employee I was talking to?" Get in touch with them and ask. You can set up access to your account online, or call in and talk to a person. Of course, you'll need to be able to prove you are the right person to discuss this with, so in ...


2

Overcontributions made after the calendar year are not usually a problem. This is because while contributions made in Jan and Feb can be counted towards the previous year, they do not have to be. This appears to be what has happened in your case. If you had an RRSP limit of $18,000 for 2015, and in Jan 2016 you contributed $22,000 to your RRSP, then it is ...


2

I'll give you the practical answer my tax advisor gave me. First off, it's not about how much you use your phone, its about what fractionof the charges are work related. Second, as long as your claim is reasonable and the amounts are small, the CRA doesn't care about them being precisely accurate. Guess how much you use your phone for work, then claim ...


2

If you write a very sympathetic letter to the CRA explaining your circumstances, with a specific request to waive the interest on non-payment, with proof that payment of the balance owing has already been made,they may decide to waive the interest charged. If they fail to waive it... I recommend you pay the $30. Unjust or not, you have to ask yourself how ...


2

There is a formula to see how much to withhold from each of your cheques. It's basically "how much tax you're likely to pay, divided by number of paycheques a year." When you fill out the TD1 you basically go through the math required. There is an online calculator you could use to work out this number also. So, imagine this calculation gives $500 a ...


2

It is not taxable, because the transaction is not a barter transaction. The discount is not offered in exchange for a specific thing like an amount of work. It is offered to someone with a specific status, i.e. an employee. That is no different from offering a discount to a senior, or a veteran. Key to this is that they person receiving the discount does ...


1

I believe I found the answer and it is a yes - however if someone can confirm that would be great: How much can I claim for depreciation? In general, depreciation on a rental property cannot be used to either create or increase your rental loss. When more than one rental property is owned, all net rental income (or loss) is combined to determine ...


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