This post is an update to my original post posted on January 5, 2021 (link). On July 5, 2021, the Lieutenant Governor of Ontario proclaimed into force the provisions of Bill 213, Better for People, Smarter for Business Act, 2020, which removes the 25% Canadian resident director requirement for corporations subject to the Business Corporations… Continue reading (Update) Bill 213 Changes to OBCA Effective July 5, 2021
Structure of the Income Tax Act
This post outlines the basic organization and layout of the Income Tax Act (Canada) (“ITA”). Parts The ITA is divided into Parts from Part I to Part XIX. The more commonly encountered Parts are highlighted below. Part I, Income Tax, consists of sections 2 to 180. This Part contains the main body of the ITA.… Continue reading Structure of the Income Tax Act
GST/HST Basics
The Excise Tax Act (Canada) (“ETA”) is made up of Parts I through IX and Schedules I through X. The legislation for the Goods and Services Tax (GST) and Harmonized Sales Tax (HST) is found in Part IX, from sections 122 to 363.2, and Schedules V to X of the ETA. Section 123(1) contains definitions… Continue reading GST/HST Basics
Professional Corporations
The Business Corporations Act (Ontario) (“OBCA”) allows members of certain professions to incorporate a professional corporation. These professions include: [OBCA s. 3.1(2)(b)] A profession named in Schedule 1 of the Regulated Health Professions Act, 1991 Chartered Professional Accountants, governed by the Chartered Professional Accountants of Ontario Act, 2017 Lawyers and paralegals, governed by the Law… Continue reading Professional Corporations
Sources of Tax
Each level of government in Canada (federal, provincial, and municipal) has jurisdiction to impose different taxes. Income Tax The Income Tax Act (Canada) is a federal statute which sets out the rules for income tax across the country. Income tax is collected from individuals (humans), corporations, and trusts. It may also be collected from other… Continue reading Sources of Tax
Subsection 50(1) election for bad debts and worthless shares
Subsection 50(1) of the Income Tax Act permits a taxpayer to make an election in their return of income for the year to deem them to have disposed of a debt or share at the end of the year for proceeds equal to nil, and to have reacquired it immediately after the end of the… Continue reading Subsection 50(1) election for bad debts and worthless shares
Not-for-Profit Corporations Act (Ontario) (ONCA)
Business corporations in Ontario are generally incorporated under the Business Corporations Act (Ontario) (OBCA). Not-for-profit corporations in Ontario may be incorporated under the Corporations Act (Ontario) (OCA) (generally under Part III). The OCA specifically does not apply to corporations incorporated under the OBCA (OCA section 2). The Not-for-Profit Corporations Act (Ontario) (ONCA) was passed in… Continue reading Not-for-Profit Corporations Act (Ontario) (ONCA)
Bill 213 Changes to OBCA
(Update: The changes below have been proclaimed into force and are effective as of July 5, 2021. See update post here.) On December 8, 2020, the Ontario legislature gave royal assent to Bill 213, Better for People, Smarter for Business Act, 2020. The Bill makes important changes to the Business Corporations Act (Ontario) (OBCA). Repeal… Continue reading Bill 213 Changes to OBCA
Introduction
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