CANADA EMERGENCY WAGE SUBSIDY

CANADA EMERGENCY WAGE SUBSIDY (75%) The government is proposing a 75% wage subsidy, up to a maximum of $847 per week for each eligible employee. The subsidy would be available for qualifying businesses who have suffered a decline of 30% in monthly revenue for a period of 3 months (March 2020 through May 2020). For […]

COVID 19 EMERGENCY SUPPORT FOR FAMILIES and LOW INCOME INDIVIDUALS

The Federal Government has announced emergency support for individuals and families: Increases to the Child Tax Benefit will be automatically be adjusted for families receiving the benefit. A one-time special payment for recipients of the GST credit will be sent automatically In addition, the filing deadline for personal tax returns has been extended from April […]

Taxing Online Purchases and Sales

These days tax jurisdictions are struggling to deal with online transactions. In British Columbia we are subject to both Federal GST and BC PST. If the jurisdictions themselves are struggling, that means that small businesses may find that they are caught up in a dizzying array of complex rules for multiple jurisdictions. By and large […]

Asset Sale vs Share Sale

Technology companies – in fact most small businesses – often have difficulty taking advantage of the recently enriched lifetime capital gains deduction. When first introduced the capital gains deduction was targeted the first $500,000 of capital gains on family farms and qualified small business corporation shares (“QSBCs”). Since then the lifetime capital gains limit has […]

VCC Tax Credit Is Not “Government Assistance”

British Columbia’s Small Business Venture Capital Act provides a 30% tax credit to eligible investors in corporations involved in a “prescribed business activity” within BC. For individuals the tax credit is fully refundable and isn’t considered taxable under paragraph 12(1)(x) of the Income Tax Act: SUBSECTION 12)(1) – INCOME INCLUSIONS (x) Inducement, reimbursement, etc. — any particular amount […]

Self-Employed Contractor or Employee?

Whether you are an individual looking for a broader range of tax deductions than employees are ordinarily entitled to, or an employer looking for a more flexible working arrangement with your “employees”, you need to understand the rules around employment. The employer-employee relationships is dealt with by a number of different legislative regimes. These include: The Income […]

Convertible Debt or Convertible Equity for Early Stage Companies

An article by Leena Rao – a senior editor at TechCrunch.com – suggests that while convertible debt may be getting popular with early stage investors, it can cause a lot of problems. This is especially true where Series A funding doesn’t come along before the notes become due – putting start ups in default. This […]

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