Keep The Invoices

Improper input tax credit (ITC) documentation is one of the main reasons for GST/HST reassessments. Proper invoices to support ITCs are required by Canada Revenue Agency auditors.

For example, the input tax credit may be disallowed if only the credit card slip is provided
rather than the actual invoice. The supplier’s GST/HST registration number should be printed
on the source document. Some clients use credit card receipts, bank statements, and cancelled
cheques to substantiate the GST/HST input tax credits. However, none of these documents show the supplier’s GST/HST registration number.

Employer-Paid Disability Premiums

If you think that paying for your employee’s disability premiums is always
a good thing, think again. If you provide your employees disability as a
nontaxable fringe benefit, payments they receive upon their disability will
be, in most cases, FULLY taxable to them!

Payments received due to disability are not taxable if:
● Your employees paid the premiums on the policy with after-tax funds, OR,
● You paid the premiums but deducted the amount from their income.

The cost of disability insurance – even over a good amount of time - can be far
less than the tax due on the income received under the policy. Like all insurance,
it all depends on whether you actually collect under the policy.