Yesterday the transit plebiscite results were announced with a resounding No result. What was the No vote for? Was it a vote against Translink (as the mayors are saying), was it a vote against Transit (maybe bike lanes but probably not), or was it a vote against ANOTHER tax. In my view, it was the latter, a vote against yet ANOTHER Tax but phrased in a way that focused on Translink.
There are many differences between the Canadian and U.S. tax systems, which complicate tax planning, especially for the U.S. citizen living in Canada. In preparation of the oncoming tax season, I’ve outlined the most common differences noted in our tax practice:
Below are a list of the major income tax changes that are effective for the 2014 taxation year.
No more safety deposit box – The deduction for amounts paid for the use of a safety deposit box of a financial institution will no longer be allowed.
Family Tax Cut – For eligible couples with minor children, a $2,000 non-refundable tax cut will be available. The Family Tax Cut is calculated based on the reduction to you and your spouse’s combined federal taxes if up to $50,000 of taxable income was transferred from the high income spouse to the lower income spouse.
Here in BC we have looked towards Alberta as a low cost tax competitor for years. In BC we were happy to advertise that we have the lowest personal tax rates but we know that we cannot compete with Alberta whose tax system is subsidized by Oil and uses flat tax rates and the lack of sales tax to attract those seeking the benefits.
However using Oil to subsidize Alberta’s tax system has been attacked often by those comparing their Heritage Fund which started later than Alberta’s but is now approaching 1-Trillion Dollars (compared to Alberta’s 17-Billion).
We hear from our clients quite regularly that they are employing a nanny, we then have the unfortunate task of welcoming them to the world of payroll withholdings, WCB and T4 slips. Here are some of the steps one has to be aware of when they embark on being an ‘Employer’. Don’t worry we can work with you and provide payroll support for your new job.
Step 1: Register with the Canada Revenue Agency (CRA) for a business number.