Code

Ali Raza Jaffer, Chartered Accountant Mississauga, Greater Toronto Area

New Portal
Contact Us
Facebook X-twitter Linkedin Instagram
Menu

Dear Clients & Friends,

Hope everyone had a safe and restful long weekend!   With spring upon us, it is an opportunity for us to get out and explore nature after staying indoors over the winter months!

Spring is also a reminder to start to gather your personal income tax documents.  This newsletter provides an update on recent government benefits, tax deadlines and some tax tips.  In this edition, we review the following:

  1. 2020 Personal Income Taxes & Deadlines
  2. Home Office Expense Deductions
  3. Personal Income Tax Payment Deferral
  4. Advisory, Tax Planning and Cash Flow Planning
  5. Website & Social Media Updates
  6. Covid-19 Government Updates

1. 2020 Personal Income Taxes

With the tax deadline of April 30th approaching, we have not been given any indication from the Federal government whether their will be any extensions this year.  However, please see topic 3) below for an update if you are eligible for a deferral of your income tax payments.  If you have not send us your personal income tax documents for 2020, we have a few options for you to submit your documents to us.  Our office is open as part of the essential businesses in Ontario government.   We have a number of means of communication available to ensure our client’s needs can still be met including telephone, e-mail, and video conferencing.  If you would like to set up a meeting, please feel free to call the office.

Here are some suggestions for sending us your tax documents:

  1. Similar to last year, we have added a box in our lobby for personal tax documents if you wish to drop them off.
  2. You may also courier or mail your package to us as many have done in the past.
  3. You may send us the documents digitally via any of the following options:
    1. Email
    2. Drop box
    3. Google drive
    4. Box

Here is the 2020 income tax checklist for your convenience.

 

Listed below are the upcoming CRA deadlines:

  • April 30, 2021- Deadline for filing & payment of taxes owing for 2020 Personal Tax Returns (payment deadline subject to eligibility in topic 3) below)
  • April 30,2021 – Deadline for payment of HST payable for Self Employed (payment deadline subject to eligibility in topic 3) below)
  • April 30, 2021 – Deadline for payment of taxes owing for Self Employed Individuals
  • June 15, 2021 – Deadline for filing Tax Return for Self-Employed Individuals
  • June 15, 2021 – Deadline for filing of HST for Self-Employed Individuals

 

2. Home Office Expense Deductions

A reminder for your personal taxes, CRA is offering a home office deduction for 2020.   As approximately  40-45% of Canadians worked from home for a portion of 2020, CRA has introduced a modified home office expense deduction for 2020.  If you worked from home for at least 50% of the time for at least 4 consecutive weeks, you could be eligible for a deduction.

Here is a summary of the methods:

    1. Temporary Flat Method
      • Deduction of $2/day, up to a maximum of $400.
      • To calculate work days, individuals must use days that they worked full-time or part-time hours from home, but not days off, vacation days, sick leave days or other days of absence.
      • Multiple people working from the same home can each make this claim.
    2. Detailed Method
      • Obtain a simplified T2200S form from your employer (form T2200S is a simplified version of the T2200 form).
      • Individuals must have supporting documents in the event of a CRA review.
      • Employee can claim specific eligible expenses.
      • Eligible expenses include electricity, heating, water, maintenance and rent, but not mortgage interest, property taxes or home insurance (unless a commission employee).
      • employee’s deduction for the allowable expenses is limited to the employment use of the work space.
      • eligible employees can also include a deduction for office supplies (e.g., postage, stationary, ink cartridges) and other expenses (e.g., the employment use of a cell phone,
      • long distance calls for employment purposes).
      • Employees cannot claim any expenses that were or will be reimbursed by their employer.

 

If you require assistance with the distinction of the 2 methods, please contact our office.

 

3. Personal Income Tax Payment Deferral

CRA has allowed for the deferral of income tax owing until April 30th, 2022 if the following conditions are met:

  • You collected at least one of the following Covid-19 benefits:  CERB, CRB, CESB, CRCB, CRSB, EI or an provincial/territorial benefits
  • Your 2020 taxable income was $75,000 or less
  • You meet the tax filing deadline of April 30th, 2021

 

  1. Advisory, Tax Planning and Cash Flow Planning

Whether you are an individual tax payer, sole proprietor or corporate business owner, many of us have experienced a challenging few months.  As part of our commitment and service delivery to our clients, with the recent pandemic, we have been working with our clients on the following:

1)    Insurance tax planning – I work with insurance professionals to help grow your net worth and prepare estate planning strategies

  1. Tax Efficient Strategies
  2. Income protection & Disability Insurance
  3. Critical Illness
  4. Key Person Insurance
  5. Medical Benefits for your staff and family

2)    Business Financing which includes:

  1. $100k BDC working capital loan application
  2. Bank loan proposals & applications
  3. Lines of credit applications
  4. Applications to various government loan programs in response to the COVID-19 pandemic
  5. Preparation of business plans and cash flow projections

3)    Cash Flow Planning & Budgeting

4)    Tax Planning and Corporate Restructuring

5)    Net Worth Analysis and Planning

6)    Strategies to achieve your short term and long term goals

Please see our website for further details at https://www.arjcpa.ca/business-advisory-services/

 

4. Website & Social Media Updates

If you have missed out on previous newsletters including all the government programs available throughout covid in 2020 and 2021, please click Here for the archives:  https://arjcpa.ca/newsletter/

We have been working very hard in providing COVID-19 CRA program updates, personal tips & accounting, tax and business content on social media.   Please connect and follow the links to my social media at your convenience (Facebook, Twitter, LinkedIn, Instagram) to stay fully updated on COVID-19 and tax planning tips for individuals & businesses.

If you get an opportunity, please also provide a Google Review available at the following link:

AR Jaffer Professional Corporation Chartered Professional Account Google Review

 

5. Covid-19 Updates: 

All archives of the Covid-19 programs from our past newsletters are available on our website.  Please click Here for the archives:  https://arjcpa.ca/newsletter/

I have listed a summary of the programs below.  The details are also available at https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update.html and https://www.ontario.ca/page/businesses-get-help-covid-19-costs

For Individuals:

  1. Canada Recovery Benefit (CRB)
  2. Canada Recovery Caregiving Benefit (CRCB)
  3. Canada Recovery Sickness Benefit (CRSB)

For Businesses:

    1. Canada Emergency Business Account (CEBA)
    2. Canada Emergency Rent Subsidy (CERS)
    3. Canada Emergency Wage Subsidy (CEWS)
    4. Ontario Small Busines Support Grant
    5. Ontario Main Street Relief Grant: PPE Support

Please contact us if you require assistance with the application process.   Additional information is available at:  https://www.app.grants.gov.on.ca/msrf/#/

 

Stay Safe!

Best regards,

Ali Raza Jaffer, CPA, CGA, MBA, BComm

President, AR Jaffer Professional Corporation

Chartered Professional Accountant

We appreciate your referrals!

Click Here to Sign up for our Newsletter!