Recent changes – Businesses

A business carries on an activity for a profit. This includes a manufacturing or service business, a profession (alone or in partnership), childcare,

Business income is reported on an accrual basis, i.e. revenues have to be recorded in the taxation year they are earned, regardless of when the cash is

An individual who carries on a business must include the proceeds from all sales, including commissions and professional fees, for which the individual is

Taxpayers must deduct business losses incurred in the year against all other types of income. Any undeducted loss can be carried over to the three preceding

Like employees, persons in business may benefit from the following measures (see Section V):

Taxpayers in business may deduct any reasonable expense incurred to earn business income provided such deduction is not expressly prohibited by the Act and is

Employer EI, QPP/CPP, HSF and QPIP contributions are discussed in Section XII.

Businesses that are registered for GST/HST and QST purposes may usually apply for ITCs and ITRs for the taxes paid on purchases made in the course of commercial operations. Credits received with respect to an expense may be included in income or deducted from the expense. When they are received following the acquisition of depreciable property, they are applied to reduce the cost of the property for capital cost allowance purposes.

An employer who operates an establishment covered by the measures relating to employee tips must file an annual report of tips for each employee, no later

For tax purposes, farming includes tillage of the soil, live stock raising or exhibiting, maintaining of horses for racing, raising of poultry, fur farming,

There are specific tax consequences for individuals who carry on their business through a corporation.