Accounting Frequently Asked Questions(FAQ)

Do you have a question? Hopefully you will find the answer here in the FAQ; if not please feel free to call or email us with your question.

Students Accounting

For any queries related to tax returns for students, please visit our student accounting section

Incorporated Businesses Accounting

What are the minimum accounting and reporting requirements for a small business?

A corporate tax return must be filed annually, GST/QST must be remitted if the business is registered for GST/QST, and source deduction must be reported and paid if the business has any employees. If your business is registered in Quebec, you will have to file the Quebec tax return.

I am self-employed with no employees; do I still need to file a business tax return?

Yes. If your business is a sole proprietorship or partnership, you use the same income tax return to file your business taxes that you use to file your personal income taxes – the T1 income tax form. If your business is a corporation, however, you have to file a T2 corporate income tax return.

Personal Taxes Accounting services

Do I need to file a tax return?

Yes, if

  • You owe any tax for the calendar year
  • You were sent a request to file a return
  • You wish to apply for Working Income Tax Benefit (WITB)
  • You have to contribute to the Canada Pension Plan (CPP)
  • You have to repay any social benefits.
  • You have not repaid all amounts withdrawn from your Registered Retirement Savings Plan under the Home Buyers' Plan or the Lifelong Learning Plan

Even if none of these requirements apply, you may still want to file a return to claim a refund, record a credit for the year, to continue receiving the Canada Child Tax Benefit, or to apply for the GST/HST credit

When are personal tax returns due to the government?

  • Income taxes are calculated for a calendar year and the deadline is April 30th of the following year for individuals' tax returns or June 15th for self-employed persons
  • It is advised that you have your taxes done well in advance of this date. If you are late filing, you should still file your taxes, but know that if you owe any tax then there may be interest associated with your account

Can I file taxes for previous years that I was in Canada?

Yes, we can file taxes for previous years for you so long as you have copies of previous information slips and documents

What do I need to file my tax return?

For example:

I am a married man with two children and in full-time employment, what do I need for filing?

  • T4/Rl-1 provided by your each employer.(if you had multiple jobs during the year)
  • Day-care receipts provided by day care provider.
  • T5/Rl-3 to show if there is any investment income earned like dividends or Interest.
  • Lease or documents showing property tax paid if earning a low income. (Generally Releve-4 in Quebec)
  • RRSP slips to show contributions to an RRSP.
  • Transit passes receipts.
For example:

I am self-employed, what additional documents would I need for filing compared to other individuals?

  • On top of the regular documents and slips needed for individuals, self-employed persons also need to provide proof of any revenue earned and expenses incurred relevant to their business.
For example:

I am a student, what do I need for filing?

How is tax payable calculated?

Total income from all sources
Less: Deductions
= Taxable Income
x Federal tax rate
= Net Federal Tax
Less: Tax Credits
= Tax Payable

What is the GST/HST credit?

  • The GST/HST credit in a tax-free quarterly payment that helps individuals and families with low and modest incomes offset all or part of the GST or HST that they pay.
  • To be eligible, you must be a resident of Canada and 19 or older.
  • You can apply for the GST/HST credit when you file your taxes.

Do I need to report income earned in other countries?

  • Yes. You need to report world income on your Canadian tax return.

What is the difference between a deduction and a credit?

  • Deductions reduce how much you owe in taxes by decreasing your income, and therefore possibly lowering what tax bracket you are in.
  • Credits are used after the amount you should owe in taxes is determined. These are then offset against your tax liability to reduce how much you owe in taxes.

What expenditures qualify for the Home Renovation Tax Credit?

  • Qualifying expenses include building materials, fixtures, equipment rentals, permits, labour, and professional services, but do not include financing costs.
  • The professional services can not be provided by a person related to the taxpayer unless that person is registered for GST/HST purposes.

How does a Tax-Free Savings Account (TFSA) work?

  • The TFSA allows Canadians to earn tax-free investment income.
  • Canadian residents age 18 or over can contribute up to $5,000 annually to a TFSA and withdrawal amounts tax-free; however contributions are not tax-deductible.

Who can claim the tax credit for child care expenses?

  • The person supporting a child can claim child care expenses. However, if there are multiple people supporting the child then the person with the lower net income must claim the child care expenses.
  • Child care expenses must have been incurred while you or your spouse was in employment, research activities, school, actively seeking employment, or while unable to care for the child due to medical impairment or imprisonment.

What is the Child Tax Benefit?

  • If you have children under 18, the Child Tax Benefit is a monthly tax-free payment that can help with the cost of raising them.
  • The amount of this benefit depends on family income, and the number of children in the household and their ages.

I contributed to an RRSP this year. Can I deduct the contributions?

Official contribution receipts can be claimed as a deduction from your income on line 208 of your return up to your RRSP deduction limit.