Canada Tax News & Updates

Man standing in front of a closed door with a sign reading 'Audit Department' inside the Canada Revenue Agency building. Inside the room, two men are engaged in conversation at a desk, with one identified as a tax auditor questioning the other man about potential hidden information in the return, representing the process of a CRA audit - KR Law Firm - Tax Law Firm in Toronto

The CRA Audit

The Canada Revenue Agency’s (“CRA“) audits mainly focus on those categories of taxpayers who are most likely to have under-reported their income. As employees and salary earners can have their income easily cross-checked against the…

A man with a heavy ball labeled 'tax' chained to his leg, walking away from a corporation building towards the Canada Revenue Agency (CRA) building, symbolizing the concept of director's liability for tax debts of a corporation - KR Law Firm - Tax Law Firm in Toronto

Tax

Director’s Liability for Tax Debts of a Corporation

Corporations under the Law Under the law, a corporation is regarded as a separate and distinct legal entity from its owners and managers. This separate entity status is the keystone feature of a corporation and is explicitly set out in Canadian…

Tax

Tax Dispute and Litigation Process

Administration of Taxes by the CRA The Minister of National Revenue (the “Minister“) is the administrator of tax in Canada. However, in practice, the Canada Revenue Agency (“CRA“) performs nearly all of the Minister’s functions. When…

Illustration of a man in a suit running with a briefcase, with letters labeled 'tax' emanating from the briefcase and dispersing in the air, symbolizing the concept of tax residency of corporations - KR Law Firm - Tax Law Firm in Toronto

Tax

Tax Residency of Corporations

Taxation of Residents Vs. Non-Residents in Canada The provision of the Income Tax Act (“ITA“) that sets out who is liable to pay income tax in Canada is section 2. Subsection 2(1) states that an income tax shall be paid each year on…

A man in a thoughtful pose with a thought bubble above his head containing the question 'Tax Residency status?' The background displays an image of a cityscape, representing contemplation and consideration of tax residency for individuals - KR Law Firm - Tax Law Firm in Toronto

Tax

Tax Residency of Individuals

"Residency" as a Basis for Taxation Residency is the principal connecting factor used for Canadian tax purposes. It underscores the social and economic connections between a person and the taxing authority, which is why Canada uses residency…

Group of professionals seated around a table engaged in discussion, with a screen in the background displaying information about Corporate Taxation, representing the topic of corporate taxation in Canada - KR Law Firm - Tax Law Firm in Toronto

Tax

Corporate Taxation in Canada

What Are Corporations Under the Law? A corporation, as defined by law, is a separate and distinct legal entity from its owners or shareholders. This separation is a pivotal feature of a corporation and is explicitly outlined in section 15(1)…