As accountants in a region rich with tourism, we’re often asked by employers the tax impact of gratuities. For the recipient, it’s relatively straight forward. Tips are considered taxable income regardless of whether they’re listed on the employees T4 slip or not. For employers, it’s not quite as simple. The difference between controlled and direct…

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Until recently, there were significant barriers to selling a business to the next generation within a family – parents and children were heavily penalized when transacting on a sale of shares of the business versus the same transaction with an arm’s-length party. Bill C-208 received Royal Assent on June 29, 2021. This bill generally removed…

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We are often asked by our clients how they should treat the carrying costs of vacant or undeveloped land for tax purposes. We are hopeful this blog will assist people to understand the appropriate treatment. Background Owners of vacant land incur carrying costs associated with ownership. Examples of such costs include property taxes, general maintenance…

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Canada’s Deputy Prime Minister and Finance Minister, Chrystia Freeland, delivered the 2023 Federal budget in the House of Commons on March 28, 2023. The budget calls for a deficit of $43 billion for 2022-23 and slightly lower deficits for each of 2023-24 and 2024-25. Business and Tax Highlights of the Budget include: Tax-Free First Home…

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If you have an employee that is valuable to your company, you may want to give them a gift for a special occasion, such as their birthday or the birth of a child. But at what point does it become taxable to them? Cash gifts All cash gifts to employees are taxable no matter the…

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The BC Government recently announced that effective January 1, 2022, employees covered by the Employment Standards Act are entitled to receive 5 paid sick days per employment year. This is in addition to the 3 unpaid sick days which were previously available. What employees are eligible? Any employee who has been employed for 90 consecutive…

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Baker’s Law : Bad Clients Drive Out Good Clients Over the years, Pinnacle has developed a client ranking system. This system has proven invaluable in sustaining and enhancing our business culture. We hope we can help others by sharing a key piece of this system – client resonance. What is “Client Resonance”? Client resonance is…

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Do you own a small business corporation in Canada? Do you and your family receive compensation from the corporation and have medical expenses? If the answer to both of these questions is yes, you may want to consider the benefits of a private health services plan (PHSP). Private Health Services Plan A Private Health Services…

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Tax consequences of changing the “use” of your home If you own your home and decide to move out in order to rent it, the CRA considers you to have disposed and reacquired the property, with both transactions occurring at fair market value. This “deemed disposition” triggers a capital gain which is calculated by subtracting…

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Canada’s Deputy Prime Minister and Finance Minister, Chrystia Freeland, delivered the 2021 Federal budget in the House of Commons on April 19, 2021. This is the first budget tabled by the federal government in over two years. Highlights of the Budget include: COVID-19 emergency supports Wage Subsidy and Rent Subsidy Programs The Canada Emergency Wage…

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