Treatment of a purchased or leased vehicle for tax and HST Input Tax Credit (ITC) is not always straight forward. To determine the tax deductibility and applicable ITC, a business should first determine the type of vehicle. The Canada Revenue Agency (CRA) defines two types of vehicles:
Read more →In addition to the various schedules required to support the income tax computations applicable to the T2 corporate tax return, all corporations are required to disclose whether or not they are related or associated with at least one other corporation. Subsection 251(2)(c) provides that two corporations will
Read more →Generally, premiums paid for a life insurance are not tax deductible. One exception is when the insurance policy has been assigned to a restricted financial institution as collateral for a loan. The amount eligible for deduction in a particular year is limited to either the premiums payable
Read more →Critical illness insurance is an insurance product in which the insurer is contracted to typically make a lump sum cash payment if the policyholder is diagnosed with one of the specific illnesses on a predetermined list. Most insurance companies in Canada attach additional features to the basic
Read more →PHSP is defined in subsection 248(1) of the Income Tax Act. It means (a) a contract of insurance in respect of hospital expenses, medical expenses or any combination of such expenses, or (b) a medical care insurance plan or hospital care insurance plan or any combination of such plans,
Read more →