Canadian and Quebec Income Taxes
Death and Taxes were not always the only sure things. In fact, until WWI income tax did not exist. This was a big selling point for immigrants, who were a necessity to populate this vast country. However, the war was a huge drain on both the federal and provincial coffers and a “temporary” income tax was instituted. As we all know, once a tax is in place there is no such thing as temporary. Since that time income taxes at all levels have become a firm part of our financial lives.
Rates charged and allowable deductions vary for individual residents, non –residents, self-employed people, small businesses and corporations.
ATS specializes in all of the following forms of income taxation:
Personal Income Tax
The collection of income tax in Quebec is different from the other provinces in that the residents file their provincial and federal taxes separately. Both tax systems are based on “self-assessment” in that the individual fills out the forms claiming their income and deductions and the government then evaluates the results for accuracy and completeness.
ATS can take care of all your income tax declaration, making sure that you maximize your return, or minimize your payment. We also give specialized service to students and seniors.
Non Resident Income Tax
For those who have immigrated to Canada and have not yet obtained resident status, there are special considerations that must be included in all tax forms. Completing these forms can be complicated, and are best left to professionals such as those at AST.
Self Employed Income Tax
Self-Employed individuals, either filing as a “Professional” or under a registered company, complete personal income tax forms but must add an accounting of their income and expenses. What items are allowable as full or partial expenses can vary each year, so it is important to keep your knowledge current. Getting professional advice is never wasted time or money.
Rental income comes with its own set of rules and deductions. Make sure you claim every expense that you are eligible for.
Also, owning property in the US is subject to a separate set of regulating. You need to ensure that you are correctly accounting for these rules.
Small Business Income Tax
What kind of business do you have: a sole proprietorship or a partnership? What percentage are you entitled to in a partnership? How much money did your company make vs. the allowable expenses? What is your company’s status in terms of Excise taxes and Special Levies? Have you kept clear and accurate accounting journals? Do you import or export goods? To make sure that you are correctly representing the tax situation for your company, you should seek professional help. It is too easy to miss deductions, or send up red flags that may result in an audit, by making essential errors in filing your small business’ income tax. ATS offers full bookkeeping and accounting services, along with financial planning for all types of enterprises.
Corporate Income Tax
Corporations come in three main flavors: Canadian controlled private corporations, private corporations, and public corporations. Each of them must account for the company’s income and expenses, including but not limited to worldwide income, divided income (where a Canadian company is not resident in Canada and must account only for income from Canadian sources) payroll expenses, remissions to government agencies such as the QPP, CPP, etc., capital gains and losses, assets and liabilities, depreciation of assets, and so on.
Corporate income becomes tangled with personal income through staff payroll and dividend payouts. Calculating the “gross-up” and the dividend tax credits is complex and should always be handled by professionals, both at record and data keeping, and at the figure crunching level. (Find out why bookkeepers and accountants do not do the same job, and why each is important to your business here.
Also take a look at the other taxation services provided by ATS.