An individual’s online CRA account (My Account) is now linked to their online Service Canada Account (EI, CPP, OAS, etc.) to provide both departments’ information in a single log-in session.
You started an RESP for your child’s future post-secondary education – but now they’ve decided they’re not going to continue in school, or to go to school at all.
If an RESP is not used for its intended purpose, there can be substantial tax implications. Before you cash it out, be sure your child will not change their mind!
But if you must clear out the account, know that:
- Penalties may apply
- Any government grant money must be returned, and any returns or interest on that money will be taxed as income + an additional 20% tax
- If you transfer the funds to a sibling, any grants in excess of the CESG lifetime limit of $7,200 per child must be returned to the government
- If you or your spouse have room in your RRSPs, you can transfer any returns/interest earned there to avoid the 20% penalty
For more details, see http://www.ctvnews.ca/5things/school-s-out-forever-how-to-avoid-resp-penalties-if-your-child-quits-university-1.3540452#_gus&_gucid=&_gup=twitter&_gsc=oM03Zlf, accessed November 28, 2017
The federal small business tax rate will be gradually lowered to 9% by 2019.
The British Columbia small business tax rate was cut to 2% retroactive to April 1, 2017.
Does your corporation make sales to other corporations in which you or another relative has an interest? If so, your access to small business tax rate may be affected.
The team at PEL would like to wish you and your families a very Happy Holidays and all the best for 2018.
Our office will be closing for the holidays at 5:00pm on Friday, December 22 and will remain closed through January 1. We will reopen for regular business hours on Tuesday, January 2.
If you expect to have any pressing matters during the time our office will be closed, please contact us before we close so we can make arrangements to assist you.