LEVY CPA

Tax Consulting

Many individuals are under the impression that professional tax planning and consulting are only for the mega wealthy.  In actuality, it is the individuals that have accumulated a modest net worth that have a more pressing need to protect their hard earned savings from OVER taxation.

Our tax consulting services focus on a proactive versus reactive approach. By keeping current on new tax laws and legislation, we are in a position to identify key tax planning opportunities that minimize both your current and future tax liabilities.

If you are considering selling your business or transferring ownership to the next generation, we can assist by implementing tax-efficient strategies and reorganize your corporate structure prior to the sale to maximize tax saving opportunities. Whether you need to put in place an estate freeze, effect a share exchange or are interested in taking advantage of the $750,000 capital gains exemption available to qualified small business corporation, make sure that you look into the tax implications well in advance of the sale as some strategies need to be implemented 24 months prior to the sale taking place.

Have you ever wanted to learn how to access corporate dollars without being assessed a personal tax benefit? We can show you how to make use of different investment vehicles that will meet these goals and give you the peace of mind that the taxation authorities won’t come asking for their share.

Holding companies and trusts have been used by the wealthy taxpayers  for generations to defer tax and protect assets. The Westminster Principle, named after the 1935 House of Lords decision in The Duke of Westminster’s Case, holds that a taxpayer can legally arrange their affairs to minimize tax payable, regardless of motive. This long held principle has been continuously reinforced by our Judiciary to protect taxpayers from the long arm of the tax department. If your current business operations do not include these structures we recommend you find out why not.

In addition, to providing value added solutions to our clients that are in business, we often assist individuals by evaluating their personal tax situation and proposing strategies to reduce the tax bite.

Here are a few questions that that might indicate an urgent need to speak to a tax professional:

• Can I afford to retire?
• How can I minimize the taxes arising on my death?
• How can I structure my investments to minimize current taxes?
• Does it make sense to buy more insurance?
• Is there a place for trusts in my financial or estate plans?
• How can I split income with members of my family?
• Does it make sense to borrow for investment purposes?

Tax Compliance

We share your viewpoint on tax, to pay as little as you can. But most business decisions have tax implications, and tax legislation is complex and always changing—you need good advice.

 

Corporate tax return preparation

Making the move from a registered business to an incorporated business is a big decision. As a corporate taxpayer the rules, regulations and government practices that you’ve become accustomed as a personal income tax filer to may not necessarily all be applicable. Installment requirements are more sever and federal and provincial rules are not always harmonized.

A key component of corporate tax return is the schedule 1 adjustment form. Corporate taxes are calculated from taxable income and schedule 1 reconciles this income to the amount found on your financial statements.

We are available to prepare your corporate tax returns using your own internal financial statements if desired. We will also electronically file these returns in an effort to accelerate any refunds owing.

 

Personal tax return preparation

With the accumulation of annual changes to the Income tax rules, the level of complexity with respect to preparing and filing your annual tax returns is ever increasing.

We provide comprehensive tax reporting and tax planning services to individuals. However, it has been our experience that we can offer the highest value to individuals experiencing situations similar to the ones detailed below:

• receive a new compensation package from an employer;
• accept a job that enables you to claim automobile and other employment expenses;
• retire and or become terminated from your job;
• become an independent contractor;
• start up a business on your own (proprietorship) or with a partner (partnership);
• invest in a rental property;
• become separated from your spouse; or
• become responsible for the tax filing obligations of others ( I.e. as a trustee or executor)

 

Self-employment issues

One of the most rewarding aspects of our business is observing over time the creation and evolution of a new business. And one of the highest compliments we can be paid, is that we’ve played a part in its success. Many of our clients began as start-up businesses. While some have dreamed about it for ages and finally took the plunge, others landed there unceremoniously, after the forceful push of a termination. We are continually impressed and inspired by the creativity and resourcefulness of our clients.

We provide professional advice and services relating to:

• registrations;
• incorporation;
• GST & PST;
• deductible expenses;
• effective record keeping;
• employees and payroll;
• compensation strategies;
• tax return preparation;

Estate & Trust

An often quoted phrase is that there is nothing certain in life except for death and taxes. Pursuant to the Income Tax Act, there is a deemed disposition of an individual’s assets immediately before death. In practical terms this means that Canadian residents have to pay a capital gains tax at death.

As tax specialists, we can help family members or the executor identify the necessary information that must be collected to properly file the required returns. Our experience in this area will ensure that all elections are taken to take advantage of tax saving opportunities.

Cross Border Taxation

A US citizen or green card holder is required to file a US personal income tax return reporting their worldwide income regardless of whether they ordinarily reside in the United States or not.

We can help Canadian residents, who have failed to meet their US income tax reporting obligations correct this omission and bring their tax situation up to date. Furthermore, we can provide advice regarding the responsibilities of the taxpayer and the options available to them.

When a non-resident of Canada disposes a real property interest, the Canadian and provincial domestic tax laws require a tax withholding. We are very experienced in assisting foreign nationals in obtaining clearance certificates as well as preparing the required tax filing to request refunds of up to 50% of the amounts withheld by their Canadian legal representatives.

With respect to rental properties, foreign owners are required by domestic law withhold and remit 25% of gross rents to the Canada Revenue Agency. In order to avoid this onerous requirement, we can prepare and file the necessary forms to eliminate this withholding tax and file the required tax returns to ensure that a future  tax obligation does not arise.

SR&ED Financing

Canada has one of the most advantageous research and development financing programs in the world. However, while the program has existed for decades, many accountants are not familiar enough with the process to maximize the available tax credits.

We can assist qualified business to obtain income tax credits that approach 80% of the eligible expenses. In other words, up to 80% of salaries paid to employees working on approved research and development can be reimbursed to the company. Imagine the type of talent your business could attract if you could pay above market rates, knowing that the out of pocket expense would only be 20 cents on the dollar!

Our expertise lies not only in the preparation and submission of the claim including the scientific report but also in designing the ideal corporate structure to ensure that all tax credits are refundable and payable at enhanced Canadian controlled private corporation rate.

Best of all, our services are 100% guaranteed. If you do not receive the tax credits we don’t get paid.

Government Audit Assistance

Recently, there has been an increasing trend in government initiated audits of individuals and businesses.  While audits in the past were conducted on an exception basis, today the policy has shifted to 100% inclusion. In other words, the new rules of engagement are that everyone must be audited eventually.

We have helped numerous clients successfully resolve personal income tax audits, net worth audits, GST-QST audits as well as corporate income tax audits.

We are available to help advise you on how to best handle such an eventuality and more importantly to act as an intermediary between yourself and the government. Let a qualified tax specialist manage this situation, thereby leaving you the freedom to run your business.

While we prefer being involved from the onset helping to prepare a properly documented audit file, we have extensive experience preparing representations at the objection and appeal levels. In fact, we often work in hand-in-hand with lawyers handling tax appeals and prepare the necessary representations to reinforce a strong defence.

Regardless of the audit stage you find yourself in, seek a reputable tax specialist and make sure an audit doesn’t put you OUT of business.