Watts Advisors Accounting & Tax Blog
Increase in Effective Tax Rate for Non-Eligible Dividends 0
December 4, 2013Starting in 2014 the Canada Revenue Agency (CRA) has changed the way that non-eligible dividends are taxed. This change will effectively increase the tax rate for non-eligible dividends. This will cause business owners to re-evaluate the way in which they draw income from their business (dividends vs. Salary). Let’s look ...
Read MoreRepeated Failure to Report Income Penalty 0
August 17, 2012Far too often I have had new clients come to me after having done their own taxes, making a mistake, and getting penalized by the Canada Revenue Agency (CRA). The CRA have the ability levy significant penalties if tax returns are not done correctly, usually when income is under reported. If ...
Read MoreFirst-time home buyers’ tax credit 0
June 15, 2012Starting in 2009 first-time home buyers’ are eligible to claim a $5,000 tax credit in the year that their home is purchased. Many people are not aware of this, and I have even encountered people who do their own taxes and have missed out on the credit because they were not ...
Read MoreInterest and Penalties 0
May 30, 2012For those of you who did not manage to file your personal tax return on time, you may be wondering what the consequences are for failing to file the return as well as failing to pay the balance owing on the return. The consequences come in the form of Interest ...
Read MoreDeductible Employment Expenses 0
March 27, 2012There are a few instances where you are able to deduct expenses against employment income. The content of this blog will just cover the most common expenses of standard employment arrangements. There are specialized rules for commission employees and other unique circumstances as well as more specialized expenses that will ...
Read MoreCRA Giving Out 20% Penalty for Missing Information 0
March 20, 2012Most people aren’t aware of one of the harshest penalties that the CRA (Canada Revenue Agency) gives out. This penalty doesn’t necessarily relate to fraud or tax evasion, but can occur if someone is simply forgetful or unorganized. Over the last couple of years the CRA has started charging a 20% ...
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