Category Archives for "Business Income Taxes"

Make Tax Time Less Stressful with These Seven Tips 

By Randall Orser | Business Income Taxes , Small Business

If you took the time to make a list of all the tasks you need to do to manage your business and then ordered them in terms of how much you liked doing them, where would record management come in? Two hundred and seventy? Or even lower?
But while most of us consider business record management to be scut work and tend to give it a low priority, good record management not only makes our working lives easier, but can give us real stress relief at tax time. Here’s what you can do to make record management easy:

1. Keep your business and personal expenses separate.

Sounds easy, doesn’t it? But this is the part of record management that trips up most people. If you take a potential client out for a round of golf, for instance, is that a personal expense or a business expense? (The answer is personal, because green fees are not a deductible business expense.) Vehicles that you use for both personal and business reasons are another perennial problem.
You need to know what qualifies as legitimate business expenses and what doesn’t, and be sure that your business record management reflects this accurately.

2. Get sufficient documentation for all business expenses.

Many business people make the mistake of thinking that “lists” are good enough for record management purposes. For instance, they have a list of purchases on their credit card statements, and think that that’s good enough in terms of claiming those purchases as business expenses.
Unfortunately, the CRA (Canada Revenue Agency) is more demanding. They do not accept credit card statements or cancelled cheques as sufficient documentation for expenses when an invoice or receipt would normally be issued.
In terms of good business record management, there are two points to bear in mind:
a) Always get a receipt. Get in the habit of asking for a receipt whenever you make a purchase – no matter how small. Little expenses add up, too, and you need the documentation for your business records.
b) Label your receipts, if necessary. There are still businesses around that hand out receipts that don’t have anything on them except the date the item was purchased and how much it cost – which isn’t very helpful when you’re staring at a receipt trying to figure out what the item in question was and which business expense category it fits into.
When you get a receipt, look at it and write the missing/relevant information on it, such as what the receipt is for and the expense category.

3. Get a separate bank account for your business – and use it.

While the fees for business bank accounts are notoriously high compared to personal accounts, a business bank account is absolutely necessary for good business record management. A business bank account helps you keep your business and personal expenses separate. You will deposit all your business revenues into the business account, and withdraw any business-related expenses or payments from the business account only.
What kind of business bank account should you get? A chequing account – preferably one that delivers monthly statements and returns your cancelled cheques to you.
Business cheques help make your record management easy because you can use the memo line on the front of each cheque to document the business purpose of the expense.

4. Have and use a separate credit card for business expenses.

Using your personal credit cards for business purposes will swiftly drop you into a record management quagmire. A business credit card greatly simplifies your business record management by helping keep your personal and business expenses separate. (It also helps make your business look more professional.)

5. Keep a mileage log of your business travel.

If you use any of your vehicles for business purposes, a mileage log will be a big help in record management. Note the mileage (or kilometer) reading on the odometer at the beginning of the year and then enter the mileage by date each time you use the vehicle for a business purpose.
Keeping your mileage log in the glove box of your vehicle will make this easy. If you have more than one vehicle that you use for business purposes, keep a mileage log in each.

6. Keep all your business records for a particular tax year together and in one place.

Having your business records scattered all over the place is a real time-waster when it comes to accounting or preparing your taxes, and organizing your business record management system by fiscal year will make it much easier to find the business records you need when you need them.

7. Keep your business records for the correct length of time.

For some reason, there seems to be a lot of confusion about how long you must keep your business records. For tax purposes, “if you file your return on time, keep your records for a minimum of six years after the end of the taxation year to which they relate” (CRA).
This six-year period starts from the last time you used the business records, not from the time the transaction occurred.
The CRA also has rules about the destruction of business records; see Canada Revenue Agency’s website for details.
These seven things you can do to make your record management easy aren’t difficult. Like a lot of the administrative business related to running a business, they just require establishing good habits and persistence. But if you apply these rules of good record management now and follow through, you’ll see a huge difference next tax time and your accounting will be easier all year long.

What Your Tax Accountant Needs to Prepare Your Income Tax

By Randall Orser | Business Income Taxes , Freelancing , Home Based Business , Investments , Personal Income Tax , Small Business

When it comes to income tax preparation, there are do-it-yourselfers and there are those who have their income tax prepared by professionals.

For many businesses, having a professional such as a tax accountant prepare their income tax returns is the most sensible option. We don’t all have time to become income tax experts and income tax mistakes can be costly. So why not hire an expert to get the job done right and cut down on tax time anxiety?

To do the job right, though, your tax accountant or other income tax preparer will need to have all the right tax records at hand – preferably organized. Use this checklist to get your records together for your tax accountant.

Business Records Your Accountant Needs

· Revenue and business expenses for the year

· Business use of auto

· Auto operating expenses

· Vehicle driving log with business kilometres driven

· Asset additions

· Business use-of-home details

Your tax accountant will also need any tax records such as:

· Last year’s Notice of Assessment

· Amounts paid by installments

· A copy of your income tax return filed last year (if you’re a new client)

Other records your tax accountant will need will depend on whether you’re asking him or her to prepare a T2 (corporate) or T1 (personal) income tax return.

If the latter, your tax accountant will need all the relevant information slips and tax-related documents. Here are some of the most common:

· T4 slips (if you have employment/business income)

· T4A commissions & self-employed

· T5013 Partnership Income

· T3 Income from Trusts

· T5 Investment Income

· RRSP contribution slips

· Charitable donations

· Medical and dental receipts

· Child care information

Save Money on Your Tax Accountant’s Fee

Accountants generally charge by the hour, so the harder you make their job, the more it will cost you.

Summarize and tally records wherever possible. Cheques, invoices, business expenses - all should be categorized and totalled. Sort all your information slips by type. Having your tax accountant do the organizing and tallying is the expensive way to go.

If you have several businesses, remember that you will have to have separate revenue and business expenses figures for each business, as business income should be listed by individual business on the T1 form.

Be as organized as you possibly can. For example, clip groups of receipts together by type and put a post-it-note stating what the category is on the top. The less your accountant needs to figure out, the less time she’ll be spending on your file.

And remember, having a tax professional prepare your income tax return(s) isn’t costing you as much as you think when you see the bill – it’s a legitimate business expense.

Get Your Receipts Together Now for Taxes

By Randall Orser | Business Income Taxes

Many shoppers in Canada quickly decline the offer of a receipt when a store clerk asks them. You won’t ever catch a small business owner doing this. It’s not that they like drowning in thousands of little slips of paper; instead, they just know that without every receipt they can get their hands on, their tax return could get out of hand. What businesses need, then, is a way of cataloging and organizing receipts to present to the Canada Revenue Agency (CRA).

The CRA has very strict rules about businesses providing proof of their expenses. They also offer lenient treatment in these matters sometimes. For instance, CRA may let businesses get away by merely showing detailed accounting and other records as proof that they have spent the money they claim and may only look at certain items. In an audit, the auditor usually has a dollar figure he wants to look at and skips over anything under that amount. Sometimes, the CRA will accept these defenses for a lack of receipts. At other times, they will have none of it. It is safest to keep receipts for everything. Two items where this is never the case is automobile and meals.

There are two parts to providing the CRA with the proof required – getting all the receipts from all the vendors you deal with and then organizing them to present to the CRA as proof. Getting the receipts is easy enough – you only have to resolve to ask for them. Organizing receipts in a manageable and presentable way, though, is the other. These tips below help you keep your records well-sorted.

To organize receipts in proper form, you need to first know what each receipt is for. When you have a load of receipts at the end of the year, it can be hard to know which proves what. Each time you get a receipt, then, you need to make notes on it for what it is for. You may not be able to use the receipt otherwise.

It can be difficult to keep hundreds of little slips of paper organized for years. The CRA can come back long after a tax year is done and ask for additional proof for something. This is what receipt scanners are there for. The CRA accepts scans in place of original receipts. Make sure that you keep a couple of backups of your scans, though. If you don’t, you could be sunk if you lose your hard drive for some reason. Taking pictures on your smartphone camera could be a great alternative, too. There are dozens of apps that help you organize your receipts.

It is hard to overestimate how confusing hundreds of receipts can be when you need to find a specific one for a specific expense. If you have the misfortune to be in a tax audit, you can find that merely having an organized set of receipts is not enough. The CRA auditor may ask for additional corroboration – in the form of a business calendar. If you are deducting travel expenses, for instance, the auditor may want to look at your business calendar to see if you actually have travel plans jotted down in there. Maintaining a detailed Outlook calendar could be a great idea.

Final tips

It is important to keep all your bank and credit card statements. These aren’t good enough to take the place of actual receipts, though. These statements typically use short descriptions for each expense. An expense line may say that you’ve spent $700 at Amazon – it won’t say that you bought business software with that money. As far as the CRA is concerned, you could have bought $700 worth of Silly String cans. You need to keep your receipts as well as your credit card statements.

Finally, whatever happens, always pay with checks or plastic. Cash expenses do come with receipts; they don’t have additional corroboration in the form of bank or credit card statements, though. As far as the CRA is concerned, there is no such thing as too much proof.

You’re much better off trying to ensure you have all your receipts for your business expense, and for those personal expenses you can deduct such as donations and medical expenses, now rather than waiting until April (June for small business); in which case, you may end up filing late.

The CRA is happy to give you thousands of dollars off your tax bill. The only thing they ask in return is solid corroboration for each expense you deduct. Collecting and organizing receipts, though, proves to be a tall order for many small businesses. These tips that follow show you where many businesses make mistakes and what you can do to keep your tax return safe. Or better yet, hire Number Crunchers® and get this headache off your shoulders.

Could you be Defined by the CRA as a Personal Services Corporation?

By Randall Orser | Business Income Taxes , Consulting , Employees , Small Business

With the loss of full-time positions, people are forming one-person small businesses and then incorporating for tax advantages and liability protection.   

You do not want the CRA to define your corporation as a personal services corporation because you will not be allowed to claim any of the standard business expenses including the Small Business Deduction. The CRA explains this as a person providing services on behalf of the corporation is called an incorporated employee not a contractor.

This makes a big difference to your income tax if you are defined as an employee rather than as a business person, because you will not have the same potential tax deductions as a business person. 

The CRA defines a personal services corporation as: "a business that a corporation carries on, to provide services to another entity (such as a person or a partnership) that an officer or employee of that entity would usually perform" (T4012 – T2 Corporation Income Tax Guide, Chapter 4, Canada Revenue Agency.

The CRA uses four criteria to determine whether a person is an employee or an independent contractor:

  • Control 
  • Ownership of Tools
  • Chance of profit/risk of loss
  • Integration

For a corporation with only one shareholder doing business for only one company it is hard to prove that they are actually a business and not a personal services corporation.  From the government’s point of view, just calling an employee something else does not mean that they are not actually an employee, especially when their duties are exactly what an employee would do.   

If you are defined by the CRA as a personal services corporation you run the risk of not only losing your small business tax deduction and other standard business deductions, you may also be subject to reassessment.  There is no time limit for reassessment, the CRA can examine your business records and find you owing for years of back taxes. 

To avoid being classes as a personal services corporation you need to ensure that you have at least five full-time employees throughout the year and that you provide services to an associated corporation.  Unfortunately this is not always possible for a small corporation, so you need to find other ways to prove yourself.

  • Avoid working for more than one client especially in a long-term relationship, the more clients you have the better chance you have of avoiding the personal service business designation.
  • Even if you do not need five employees, having any employees helps the CRA to determine your status.
  • Make sure that you continually pay attention to your situation in regard to the CRA rules on whether you are an employee or an independent contractor, these are: 
    • How much control you have over the work that you are doing for your client.
    • Ownership of tools
    • The chance of profit or risk of loss that you are exposed to.
    • The degree that you are integrated into your client’s business.
    • Avoiding the perception that you are an employee of a client, by having a written contract with them detailing the services that you will be providing and invoicing your client monthly or by the project.  If your client just pays you without receiving an invoice from you this is a red flag.

If you work as a contractor make sure that you are fully aware of CRA regulations and their distinction between employees and independent contractors.  

From Articles by Susan Ward

What is Inventory and why is it Important to your Business?

By Randall Orser | Business Income Taxes , Small Business

Your company’s inventory is what you sell to your customers.  It can either be purchased from a wholesaler and sold on-line or in your store, or it can be the raw materials that you use to manufacture products to sell.  It can also be component parts that you put together to make a product to sell. 

Inventory has value so it is an asset to your business and once you sell it you will be making money.  It also has value as collateral if you need a business loan.   The cost of selling your inventory (called cost of goods sold) is important for your business as it includes the cost of the items to make your product as well as the costs for storing inventory in your warehouse, shipping products to your customers and hiring people to work in the warehouse. 


Keeping Track of your Inventory – in both your accounting system and its physical location is important for your business:

  • To know how many items are in your inventory and their value as an asset on your balance sheet.
  • To know the costs associated with buying and selling inventory which are deductible business expenses that can reduce your business taxes.
  • Inventory costs and gross profit from sales are a major part of your business tax return.
  • The value of your inventory can be used as collateral for a loan.

Different Types of Inventory -  inventory can be divided into two categories:

  • Supplies – items sitting on the shelf waiting to be used.  These include office supplies, cleaning supplies, computer supplies and accessories.
  • Product inventory – this can be either items you buy wholesale to sell to customers or items manufactured and ready to sell, as well as components and raw materials.

Inventory and Cost of Goods Sold – Inventory is essential in calculating the cost of goods sold, which in turn is used to determine gross profit for a business that sells products whether it is a sole proprietorship, partnership or a corporation.  The cost of goods sold is calculated by:

  • Beginning inventory (your inventory at the beginning of the year, or the beginning of your business.
  • Add net purchases (calculated after discounts, allowances and returns).
  • This equals the Cost of Goods Available for Sale.
  • Less ending inventory, which is the value of your inventory at year end.

The closing inventory at the end of one year becomes the opening inventory at the beginning of the new year.  Businesses take physical inventory to make sure that what they have on record is correct.  At the same time, they can check for spoilage of obsolete goods and theft or bad record keeping which costs the business money.

From an article by Jean Murray

Should You Pay Yourself Salary or Dividends When You Incorporate Your Business?

By Randall Orser | Business Income Taxes , Personal Income Tax , Small Business

Once you incorporate your business you need to decide which is the best way to pay yourself, a salary, dividends or a mix of both. There are advantages and disadvantages to both salary and dividends for business owners.

Business Salary

Advantages:

  • If you are paid a business salary, then you will be paying into the Canada Pension Plan.  This is an important consideration for the future as the amount of retirement benefits that you will get depend on how much you have paid in and for how long.
  • Your salary or bonus will be a tax deduction for the corporation.
  • As well as paying yourself you can also do some income splitting with your spouse or children.
  • You will also be able to contribute to RRSP’s or TFSA’s for your retirement.

Disadvantages:

  • You will have a personal income which is fully taxable unlike dividends which are taxed at a lower rate so your tax bill may be greater.
  • For the Canada Pension Plan, you will have to pay both portions as you are both an employer and an employee.
  • You will have to do payroll and set up a payroll account with the CRA and file all the related paperwork.
  • If your business profits vary from year to year, paying yourself a salary will mean that you will not be able to carry back a business loss for future years which you could if you are paid by dividends.

Payment by Dividends

Advantages:

  • Dividends are taxed at a lower rate than salaries so you may pay less personal tax.
  • Dividends can be declared at any time which means that you can optimize your tax situation.
  • Not paying into the CPP will save you money.
  • It is easy to pay yourself dividends, you just have to write a cheque to yourself from the company and at the end of the year update the corporation minute book and prepare a director’s resolution for the dividends paid.

Disadvantages:

  • Not paying into CPP will lessen the amount of CPP you are entitled to when you retire.
  • Being paid by dividends does not allow you to contribute to an RRSP as you do not have any income and can mean that you cannot claim other personal expenses. 

Payment by a Mix of Salary and Dividends

Whether payment in a mix of salary and dividends is the best way to go for a business owner is dependent on their personal circumstances including income level, cash flow needs, and the corporation’s predicted income for the next year.  The owner needs to understand if he needs to have room to contribute to his RRSP and if income tax deductions are important.  The decision to pay in a mix of salary and dividends should be made after discussions with an accountant or financial planner.   

Sometimes a mix of salary and dividends is paid out by the company to ensure that it does not earn over $500,000 as this is the limit up to which a privately-owned company pays the lower rate of income tax. If earnings are greater than this, it can be better to pay the owner a salary thereby reducing the corporate income.

Sole Proprietorships or Partnerships

As these types of businesses are not owned by shareholders, they cannot issue dividends and the owners cannot be salaried employees with payroll deductions.  Business income and personal income become the same thing, so you have no choice but to report your earnings on a T1 income tax return.

From an article by Susan Ward

Five Common Mistakes That Small Business Owners Should Avoid

By Randall Orser | Business Income Taxes , Small Business

Small business owners, and those who work freelance or are self-employed must submit an annual tax return to the Canada Revenue Agency.  Most people only focus on their taxes a week or two before they are due, but you should really be thinking about them all year round so that you maximize your deductions and credits thereby reducing the amount of taxes that you have to pay. 

Here are five common mistakes that self-employed people make when filing their annual return.

1.  Failing to Write off Business Expenses

As a self-employed person the CRA allows you to deduct reasonable expenses that you incur while earning business income.  These expenses include start-up costs, business fees, memberships and subscriptions, salaries, wages, employee benefits, accounting legal and other professional service fees, telephones, utilities and office expenses. If you use your vehicle or home for business, you may be able to deduct related expenses for these too.  It is important that you are aware of which expenses you can deduct to have a lower taxable income, but you should also make sure that the expenses you are claiming are reasonable so as not to attract a CRA audit.

2.  Claiming Expenses that are not Deductible

If you claim expenses that are not deductible the CRA sees it as a failure to report income which can mean a reassessment and interest and penalty charges on the unreported income.  Make sure that you are fully aware of the expenses that you can claim when submitting your return.

3.  Forgetting to Track Your Expenses

Just keeping receipts in a box is not the best way to track your expenses.  You should be keeping records of all your expenses as they occur.  Use accounting software or a smartphone app to record everything immediately.  At tax time you will have a more comprehensive record which will make doing your return so much easier than trying to remember what each receipt was for long after the purchase.

4.  Failing to Report Cash or Trade Payments

If you receive payment for work by cash or trade, you must still report it.  Failure to do so can result in severe penalties from the CRA.  These can include more assessed taxes, interest and penalties, court fines and even jail time.  

5. Insufficient Proof Related to Meal and Entertainment Costs

Self-employed people can claim a partial deduction for meals and entertainment.  This is 50% of expenses incurred to expand your business or for travelling for work.  You may also be able to deduct all of your expenses for holding a holiday party for your employees or for buying food for a charity dinner.  If you are a long-haul truck driver you can claim 80% of your meal expenses and self-employed couriers can claim a flat rate of $17.50 per day.

Just saving receipts for these expenses is not enough for the CRA.  You must be able to prove that they were necessary for your business.  You should record information such as the event, who came, what was discussed and how it relates to your business on each receipt. In addition, credit card receipts showing the amount that you paid must be accompanied by a restaurant or event receipt showing what was purchased.  Truck drivers and couriers should record expenses along with mileage in a log book with information showing where they travelled and where work was done.

For more information see:

CRA Business Expenses

CRA Interest and Penalties

CRA "Will you do the job for cash? It's risky business"

CRA "Line 8523 - Meals and entertainment (allowable part only)" 

From an article by Turbo Tax

Do You Know Why the CRA Uses a Profit Test for Business?

By Randall Orser | Business Income Taxes , Small Business

The CRA defines a business as “an activity that you conduct for profit or a reasonable expectation of profit”.

The profit test is used by the CRA to determine whether or not a person is actually running a business.  The test asks, “Was the activity conducted with an actual expectation of profit?” and “Was that expectation of profit reasonable?”  Only a person (or legal entity) operating a business can claim business expenses or business tax credits on their income tax or GST return.  If the business does not pass the profit test, then all credits and expenses will be disallowed.

Criteria that the CRA uses to determine whether or not you are running a business:

  • The profit and loss of the business in past years.
  • The amount of gross income if any reported over several years.
  • The length of time in which the business can be reasonably expected to be showing a profit, relevant to the nature of the activity.  
  • The extent of the activity related to businesses of a similar nature and size in the same locality.
  • The amount of time spent on the activity.
  • The qualifications of the business owner, including training, experience and education including eligibility for membership of a professional association.
  • The individual’s intended course of action for the business to make a profit, for example preparing a business plan.
  • That the business has enough capital to make it capable of showing a profit after depreciation, and the individual has the resources available to allow the business to develop and expand.  This includes the ability to secure financing to make the business viable.  
  • That a degree of effort is spent in promoting and marketing the product or services supplied by the individual.  This includes the registration of a trading name and opening and maintaining books and records.
  • The type of expenses claimed and how relevant and reasonable they are to the activity, and if this expenditure will help the business to make a profit.
  • The nature of the goods or services provided is such that a market exists or can be developed and there is potential for profit.

For more information see the CRA's   P-176R – Application of Profit Test to Carrying on a Business

What is Income Splitting and How Can it Reduce Your Tax Bill?

By Randall Orser | Business Income Taxes , Personal Finances , Small Business

Income splitting is the transfer of income from a person in a higher tax bracket to a family member in a lower tax bracket.  The more you earn the higher your income tax bracket so “transferring” some of your income to a person whose income is lower than yours will result in having to pay much less tax.

The Family Tax Cut that allowed individuals to split their income with a spouse up to a tax credit of $2000 is no longer available, but businesses can use income splitting strategies still available to them.

There are two ways in which you can split your business income: 

  • By paying some of it in salary or wages to a family member 
  • Transferring some to family members in the form of dividends

Paying salary or wages to a family member means that you actually hire your spouse or children as employees and pay them from your business income thereby reducing your net income.  For example, if you earn $75,000 and pay your spouse $30,000 this reduces your income to $45,000 which is a lower tax bracket, and your spouse will be taxed even less as $30,000 is even lesser tax bracket, resulting in double tax savings for you both.  As great as this sounds there are strict rules on income splitting which involve hiring members of the family as employees.  

  • They must have duties to carry out the same as any other employee.  As with any other employee you must keep employee records to prove that your family member actually worked in the business.
  • You have to pay your family member the same wage as you would pay anyone else to do the same job.  You cannot overpay them for the job they do, the rate must be the same as other employees earn in the same industry.

Income splitting by Dividends is another way to pay your spouse or children, but you can only do this if your business is incorporated.  This tax strategy is very flexible in that the value of the dividends and those receiving them can vary from year to year.  Your corporation must be set up so that your spouse and children are shareholders then dividends can be distributed between them.  You can also structure your corporation so that there are non-voting share classes for family members so that they can receive dividends but not vote on decisions made relating to the company. 

For the 2018 tax year, the rules on split income received through dividends is changing.  For more information go to Revenue Canada guidance on split income rules for adults.  


Self Employed? Do You Know What Your Tax Obligations Are?

By Randall Orser | Business Income Taxes , Freelancing , Home Based Business , Sales Taxes , Small Business

While self-employment comes with some great benefits, such as a flexible work schedule and freedom to select your work projects, you also have big responsibilities, when it comes to tax time. You are totally responsible for reporting your income and filing and paying your taxes.

It’s a good idea to get familiar with the CRA required self-employment tax forms. When you understand what you have to do, you can organize your finances, keep great records, and make tax filing much easier.

Do you need to file self-employment taxes? You are considered by the CRA to be self-employed if your business is one of the following: 

  • A sole proprietorship
  • An unincorporated partnership
  • An unincorporated limited liability partnership
  • An unincorporated general partnership

Your business income is then part of your personal tax return which means that you will pay the personal income tax rate rather than the corporate rate if your business was incorporated.  

Do you need a T4A?  Unlike when you are employed and receive a T4 from your employer, if you are self-employed as an independent contractor then your clients should send you a T4A slip which will include the dollar amount for each job you do for them.  To figure out your income you need to add the amounts from each slip.

However, you will not always get a T4A especially if you are selling goods direct to customers, they will not give you one. You will then be responsible for keeping accurate records of all of your income from receipts, invoices and any other proof of income.  It is a good idea to use a program such as Quickbooks to keep track and you can run a report to find out your total income for the year.

What is a form T2125 for?  This a Statement of Business or Professional activities which helps you to calculate your gross income as well as your business expenses which you deduct from your income to lower your taxable income.  On the T2125 you will have to provide the following information:

  • Information about your business including a description of your products and services.
  • Income from internet activities such as affiliate sales or ad traffic revenue.
  • Business or professional income.
  • The amount of GST you paid 
  • Costs incurred while making and selling your goods
  • Business expenses
  • Expenses paid for while running your business from home
  • Information about your business partners if you are in a partnership

Once you have completed form T2125 you will know your gross and net income for the year which you will enter on your T1 form. If you run a few businesses, then you will need to fill out a T2125 for each of them.

When Do You Need to Pay GST?  If your business makes more than $30,000 per year then you are required to register for a GST number and collect GST from your customers.  You will submit a GST return either monthly, quarterly, or annually.  

Tax Deadlines  If you are self-employed you will have until June 15th to file your tax return instead of the April 30th deadline.  However, you should still pay any taxes you owe by April 30th.  If you are employed in addition to running your own business, then you will have to file your T1 return by April 30th. Your clients have until the last day of February to send you any T4A slips.

 

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