Category: Tax Issues

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Reasonable Per-Kilometer Allowance

A link is provided in the government section of the blog to allow you a quick access to CRA site, where they list the per kilometer allowance rates. These are the rates that CRA allows an individual to charge back to a corporation for using their own vehicle on business related travels, without incurring a taxable benefit.

The company takes the deduction for travel expenses, and the individual who has the claim, and is reimbursed, uses the funds to offset their cost of using their own vehicle without having an income claim.

This is the link: Per KM

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Call CRA on your Personal Tax Matters

With the change in phone systems, the phone number remains the same 800-959-8281 but you no longer have the option to press the * key to “speak to an agent” within a few minutes.

Now these are the options:

CRA Personal Line Options Changed when calling 800-959-8281

Locked out of account press 1
Remittance Voucher or other forms 2
RRSP HBP TFSA 3
Tax return, balance 4 other inquiries 5
Other, address, direct deposit, trust 5
The # key returns to main menu.

 

You need your SIN number, and need to key it in to give CRA a “heads up” to who they will be speaking with, and the mechanical voice will let you know the waiting period for you to be in the queue.  It seems to take longer now, but if the service is better, that is the trade off.  Time will fix just about everything.

Jack

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Government Changed their Phone System

It looks like we can no longer dial the business number 1-800-959-5525 and then press the * key to contact them directly.

Try this:

Calling CRA Business 800-959-5525

After dialing, there are different options to press.
Some that may be of benefit to us are:
– Payroll 3
– GST 4 then press 0 enter 9 digits HST then 1
– Self employed or Corporation 5
– Other 6

First two have to do with registrations or difficulty accessing accounts on line.

 

Jack

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Bursaries and Scholarships may be Exempt Income Sources

Line 130 – Scholarships, fellowships, bursaries, study grants, and artist’s project grants (awards)

A number of people don’t realize that when they are a full time student, that Scholarships, fellowships, bursaries, grants are exempt from tax, and are reported through a T4A document issued by the payer.
When you file your income tax, you should report the amount received as income, and as income that is exempt.
In order to determine if you would qualify for the exempt status, the easiest way is to access a computer, put canada.ca Link to Canada Government Website in the URL field of the search engine you are using (Chrome, Firefox, etc), and where the search bar appears in the CRA website, put in the word “Line 130”.
From there, just scroll down until you see the detail on Scholarships, etc, and hit the enter key. Within that document, there is the criteria listed and highlighted as a “qualifying student”. Put your cursor over that word, and hit the “enter” key.
You should have enough reading material to determine if you qualify for the exemption, and it will save you time in requesting an adjustment sometime later.

Jack

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Post assessment reviews

Post assessment reviews
It’s nearly time that CRA will automatically send letters for special situations that require documentation in support of some of the claims used in your most recent tax return.
This review is automatically generated based on criteria predetermined by CRA and periodically amended to include or exclude items previously determined to be relative to the initial review.
Please do not hesitate to contact us regarding the process and if we have been contacted beforehand on your behalf, we will respond and contact you if any information is believed to be contained in your annual tax document file that is in your possession.
Regards
Jack
The Holllingsworth and Associates Team.

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Government of Canada

This is the URL to GOC  Income Tax – Personal & Business

This is the URL to Apply for Canada Emergency Response Benefit (CERB)  CERB

This is the URL to Additional Support for Canadian Businesses from the Economic Impact of Covid-19. Check out New Loan Programs for business:  Additional Support from CRA

This is the URL to their Web Site. Government of Canada

This is the URL to the site to “Represent a Client” Represent a Client

This is the link to file an HST Return for a Client HST/Netfile

Reasonable Mileage allowance for employers Reasonable Allowance Rates

Income Tax – Business, Personal CRA Tax Site

Tax Tips Tax tips

Bank of Canada Rates Bank Rates

Sedar Home Page Sedar Securities

Ontario Energy and Property Tax Credit Ontario Property Tax Credit ONBEN

Protect yourself against Fraud Fraud Link

Stat Holiday Pay Calculations Stat Link

Vacation Time and Pay Vacation Pay Link

Phone Numbers for Government CRA Numbers

Lease Vs Buy Calculator for your next car Decisions

TFSA (Tax Free Savings Accounts) Limits For you 

Allowable Motor Vehicle Expenses For your claim

Efiled Help Desk Support – For preparers Like Hollingsworth & Associates

 

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Protect yourself against Fraud

There seems to be nothing worse than being interrupted by someone on the phone professing to be from a government agency, and demanding of your time.

It can get even worse when they try to intimidate you and demand a payment in the form of gift cards, or anything else they can convince you to pay.

The Canadian government does not operate this way, and an individual, department, or agency will send you mail to correspond.  That’s “snail mail” and not the type that will invade your electronic mailbox.

Pay no attention to these “scammers” and if you are going to say anything at all to them before you hang up, make sure it is along the line of “please contact my authorized representative”.

Here is a website put up by CRA to enlighten you a bit:

All about Fraud