Canada Emergency Response Benefit
https://www.canada.ca/en/services/benefits/ei/cerb-application.html For self-employed individuals or freelancers that don’t meet the requirements of either wage subsidy program, the Canada Emergency Response Benefit may provide relief.
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 […]
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 […]
Handling BC Provincial Sales Tax in Xero Online Accounting
With the return to the old regime in British Columbia, businesses are now forced to comply with the complexity of 2 separate consumption taxes (i.e. PST and GST). What prompted this discussion were the challenges faced by one of our clients – a software developer – in complying with the new regime. To begin with […]
GST Registration Essential for Many New Businesses
Depending on where your business is located, GST rates can vary from 5% to 13% of all taxable supplies that your company purchases. For startups that expect to be in a loss position for a year or 2 after incorporation, that can mean a significant amount of cash donated to the federal government as a […]
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 […]
Equity Share Structures in BC VCCs – Improving Investor’s Chances of an Exit
British Columbia’s Small Business Venture Capital Act (“the Act”) provides for a 30% tax credit to investors (refundable in cash) who buy eligible investments through a provincially-registered venture capital corporation (“VCC”). The small business must meet eligibility requirements – What are the 6 qualifying activities? Manufacturing, processing or export of value-added goods produced in British […]