On March 28th, we successfully held our first workshop regarding Canada’s personal income tax. The speaker Shawn Luo (CPA, CA) is a team leader at SGGG Fund Services Inc. He has more than three years of work experience in fund valuation. The wonderful presentation he gave covered all we need to know about the personal income tax return.
The presentation included three main sections: The Discipline of Personal Income Tax, Corporate Advantages and Common Errors.
- The Discipline of Personal Income Tax
(1) Types of income
ndividual: employment, business, property, capital gain
Business: business, property, self-employed
(2) Types of deductions
Employment expenses, vehicle expenses, home office expenses, moving expenses, RRSP, other pension contribution, employment clawback
(3) Types of credits
Refundable: medical expenses, WITB (up to 1k)
Non-refundable: personal basic amount credit 11k, CPP (up to 2k), EI (up to 900), tuition and education credit.
Shawn also reminded that people who were going to file income tax and benefit return needed to set up a personal account online at CRA website.
2. Corp Advantages
(1) For small businesses, there is a small business deduction of 500k, after which the net tax rate is 15%.
3. Common Errors
Not only introduced personal and corporate taxes, Shawn also gave the following tips to help young professionals.
– Avoid penalties for late filing
– Organize your finances to minimize taxes
– Develop a system to organize tax documents throughout the year
– Utilize tax software packages to help prepare and file returns.
All of the audience appreciated Shawn’s informative and engaging presentation and had opportunities to discuss with Shawn during and even after the workshop.
NHC wants to thank Shawn and the volunteers for their valuable time and efforts. In addition, thanks to everyone joining us at the event, and we look forward to seeing you again in future NHC events.