2019 Tax Tips And Traps - 3rd Quarter.pdf

CRA's limited review of corporate tax return projects has a reassessment rate of approximately 40%, focusing on areas like automobile expenses and eligibility for the small business deduction. US states have enacted laws requiring foreign sellers to collect and remit sales tax. The Greenhouse Gas Pollution Pricing Act was ruled constitutional by Ontario and Saskatchewan courts.
SPECIAL WORK SITE ALLOWANCE: To be tax-exempt, the work site must be temporary, the employee must have a self-contained domestic establishment (SCDE) elsewhere, and the work must require at least 36 hours at the site.
REIMBURSEMENT FOR WORK CLOTHING: Generally taxable, unless the employee is required to wear a distinctive uniform or protective clothing.
ZERO-EMISSION VEHICLES: Purchase incentive of up to $5,000 available for new purchases or leases on or after May 1, 2019, with a manufacturer's suggested retail price under $45,000 for vehicles with six or fewer seats.
ANXIETY, DEPRESSION & PHOBIAS: Eligible for Disability Tax Credit.
WORKERS COMPENSATION: Replacement payouts by employer may be taxable.
DEMAND FOR CLIENT INFORMATION: CRA has the ability to request client information.
TRACKING OF OWNERSHIP INFORMATION CHANGES: Required under the Canada Business Corporations Act.