The Small Business Tax Help Blog

Posts Tagged ‘canada’

Accountants For Independent Contractors & Small Business

12/31/11 – Sen. Johnny Isakson (R-GA) Delivers Weekly GOP Address On Commitments For 2012

Red Tape: $30.5 Billion Hidden Tax for all Canadians

Question: opening a store on the web, do i need tax number (i live in canada) or need to register my business?

i dont know if i can have a website and start selling my own handmade items with out needing any pemits,licence or tax numbers in canada?

Answer: Hi Amanda,

There are a couple of different things here, which I’ll try to cover.

You are selling your items as a sole proprietor. As such, you don’t need a seperate business registration in order to operate. You claim the income and expenses on your personal tax return, and pay tax on the net income that you make.

What you would need to register for is a GST Number,so that you could collect and remit GST to the Federal Government. However, it isn’t required that you register for GST unless you are going to have sales of $30,000 or more in a year. At that point, you must register and charge GST on your sales.

As you indicate that you are selling hand made items, you may have to register for a Provincial Sales Tax permit for the province that you are in, and charge that PST on any in province sales made. But rules are different for each province, and I don’t know which one you’re in.

CRA has some great material which I’ve linked to below. I would suggest calling your provincial Ministry of Finance to find out about provincial sales taxes.

The only other thing you may want to do is register your business name if you are using something other then your personal name. The fee for that is set by the province I believe. It’s about $70 for a 5 year registration in Ontario though. The registration would let you open a business bank account in the registered name, and also protects you from having someone else register the trade name you are using.

Cheers!

BPO firm urges longer tax breaks, flexible labor laws

As competition in the global business process outsourcing space intensifies, the government may have to consider extending the number of years of tax breaks given to locators as well as amend archaic labor laws.

How to prepare corporation income tax return for business in Canada

Question: Ontario, Canada Business Tax Claims?

Just wondering about a few claims…if they can be made or not in Ontario Canada and what it would be in a special category or something
- fees bell charges for cancelling a phone contract
- parking tickets
- personal legal fees (long shot, but worth a shot ha ha)

Any not so obvious claims a small business can make?

Answer: Bell fees: if they were business lines, yes

Parking tickets: if it was on business, yes. Personal parking, no

Legal fees: I think you know the answer there.

I strongly suggest you get an accountant, filing incorrectly can get very expensive, VERY fast.

Callander man fined $158,000 for tax evasion: Public servant under-reported income

A federal public servant who falsely reported his income — making him eligible for child tax benefits reserved for families struggling to make ends meet — was verbally spanked and handed a hefty fine by the Ontario Court of Justice Thursday.[...]

Harmonized Sales Tax for greater competitiveness Part 1 of 2