Tag: tax

Employee vs. Independent Contractor

When providing services for a corporation in Canada, there are certain Canadian income tax and non tax advantages in being considered an independent contractor as opposed to an employee.

The advantages to the employer are as follows:

No obligation to deduct Employment Insurance (EI) and therefore not required to pay an employer’s portion
Canada Pension Plan (CPP) costs, including the employer’s portion, are passed on to the contractor
Employers don’t need to include contractors in company benefit programs or offer a severance package when the contractor’s services are no longer needed.

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Proposed Changes To Canada’s Principal Residence Claim

The sale of a capital property for an amount greater than its cost generally leads to a capital gain, 50 percent of which is taxable in Canada. If the property is the seller’s principal residence, the gain resulting from the disposition can be sheltered by the principal residence exemption (“PRE”). Only taxpayers who are individuals or certain trusts are eligible to claim the PRE.

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Important Change To Recordkeeping Requirements For Ontario Not-For-Profit Corporations That Own An Interest In Land In Ontario

Effective December 10, 2016, every newly incorporated Ontario not-for-profit corporation is required to keep a register of the land in Ontario in which it has an ownership interest. Ontario not-for-profit corporations incorporated prior to December 10, 2016 will have two years to comply with the requirement to maintain a register. The land register must identify each property over which the corporation owns an interest and must indicate the date the corporation acquired the interest and, if applicable, the date the corporation disposed of it.

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