Selling a home in Canada involves crucial tax considerations – particularly the principal residence exemption (PRE), which can eliminate or reduce capital gains tax on the sale of a qualifying principal residence. If a property meets the principal residence criteria for the years you owned it, the resulting capital gain can generally be excluded from your taxable income. This guide explains the PRE rules, how to claim the exemption correctly, the reporting obligati…
Under Canadian tax law, failing to report all your taxable income – whether by accident or on purpose – comes with serious consequences. The Canada Revenue Agency (CRA) actively monitors and cross-checks tax filings to catch undeclared income. If you discover that you left income off a past return, it’s crucial to address the issue proactively to minimize penalties and legal risks.
What Is Unreported Income?
Unreported income refers to any taxable earnings th…
Correctly distinguishing between an employee and an independent contractor is critical for businesses and workers. Misclassifying someone can trigger serious consequences – retroactive CPP/EI payroll assessments, income tax withholdings, penalties and interest. In short, getting it wrong is costly, so it’s essential to understand the rules and get it right from the start.
Why Worker Classification Matters
Payroll compliance: Employers must withhold and remit…
When the Canada Revenue Agency (“CRA”) issues a tax assessment, it cannot immediately garnish wages, seize assets, or sue for payment. First comes a legally protected “grace period.” The date on which that protection ends – and the CRA gains the right to enforce the debt – is called the Collection Commencement Day. Knowing how this date is calculated, and what happens afterward, is essential for any taxpayer facing a balance owing.
Importantly, the Collection Co…