MPCPA Professional Corporation
34 Bramoak Cres L7A 1T6 Brampton, ON, Canada

Have you assessed the risk of claiming 75% wage subsidy? Most employers have applied for the Canada Emergency Wage Subsidy (CEWS) since the government has opened its application portal on April 27, 2020. The government has given many criteria to meet the employers’ eligibility; some of them are easy to understand and some are complex to interpret. In addition, there are some criteria, which lean and lead you to the fraudulent activities. ... What are the most common criteria CRA will assess? 1. The company intentionally defer its invoicing and create an artificial income reduction. 2. Increase employees’ wages to obtain a maximum benefit of wage subsidy. 3. Paying non-arm’s length employee and/or owner manager after March 15 whose baseline remuneration (Jan 1, 2020 to March 15, 2020) was nil. What are the penalties? The CRA may impose civil penalty or criminal penalty based on individual circumstances. In case of civil penalty, the employer is liable to a penalty equal to the greater of $100 and 50% of the excess amount received. In case of Criminal penalty, the employer is liable to a penalty of up to 200% of excess amount received and a maximum 5 years imprisonment.

For every Canadians, every New Year reminds the responsibility of personal tax filing. Here are some tips you need to know for your personal taxes: Child care expenses Available deductions for child care expenses will remain the same as in 2016. Boarding school and camp fees qualify for the child care deduction, though limits may apply. Ensure that child care expenses for 2017 are paid by December 31, 2017 and a receipt is obtained. Disability Tax Credit As of March 22, 2...017, nurse practitioners have been added to the list of medical practitioners who can certify eligibility for the disability tax credit. Medical Expense Tax Credit Certain costs related to the use of reproductive technologies now qualify for the medical expense tax credit for 2017 and onwards. New Canada Caregiver Credit This credit replaced the prior years’ caregiver credit, the infirm dependent credit and the family caregiver tax credit. The new Canada caregiver credit amount is $6,883 or $2,150 depending on your situation. Gifts and awards Subject to certain exceptions, non-cash gifts and non-cash awards with a total value of $500 or less annually may not be taxable to you personally. Ask your employer to consider this option. Public transit pass tax credit Ensure you claim the cost of public transit, subject to certain criteria and retain passes or receipts to support claims. Note that the federal credit no longer applies as of July 1, 2017.