r/cantax

https://www.westernstandard.news/news/tax-court-judge-slams-ai-generated-fake-case-law-in-cra-dispute/74752

I have read that the maximum credit-able charity donation to a US charity is my year's total US dividend income. So there are at least 5 different dates (for the 4 distributions and 1 donation).

Do I convert each cash flow at the fx at its date, and equate the CAD? Or do I equate the USD value of the dividends vs USD donation?

I've always relied on paper cheques, and I'm now thinking of setting up direct deposit.

I'm just wondering are there any risks to this?

I've sometimes come across horror stories on the web where someone suddenly found out that they owed a huge amount in tax (by missing some information, letters, or some obscure error that never got corrected) and then they lost a huge amount of money in one day.

That's my worry with setting up direct deposit. That some error might happen and the CRA will deduct money from my account since its now linked to them.

To make things more tense, I've been targetted by a scammer before who claimed that they were a collections agency and they actually checked my credit (I saw it on my credit report). I don't know for sure if it was a scammer or some legit agency but they looked very shady.

Or.......does entering your deposit info make no difference at all because the CRA already knows where you cash their usual cheques?

bit of a complicated situation here but essentially what happened is that last year I worked for a company who did not pay my taxes and despite me being an employee, because they classified me as self-employed. this means I had to pay my taxes by myself, $1700. I contacted the CRA who fixed it for me, marking me as an employee.

I made $18,000 or so working there over the last year. This

I sent in the document proving that I was an actual employee to revenu Québec, but on my revenu Québec profile, I still have the $1700 of late taxes racking up interest.

my question is do I have to pay these taxes still ? I thought the employer would pay most of them or all of it. lmk if you need more details because I’m really not sure about this situation

I live in Ontario and collecting CPP. I started a part-time job. On the TD1 form for my employer on line 13, do I claim "0" or $16,452.? Also, do I tick box "More than one employer..."? Is part-time job and CPP considered two employers? A bit confused. Thanks for any help.

In September 2024, I left canada and returned to my home country. My canadian university offered remote courses so I kept attending university online. I returned to Canada in September 2025.

Only residential tie (apart from university) I had to canada was my bank account.

I had 25k+ in crypto.

Was I considered an emigrant in 2024 and had to file T1161 for my crypto when leaving? Even if I knew it wasn’t a permanent departure and had intentions to return?

I’m looking for some guidance on how to fix a Canadian tax mistake involving U.S. internship income.

While I was in university, I worked in the US for multiple nternships in 2024 and 2025. I filed and paid taxes in the US. My dad pays a CPA to do our family's tax returns and the CPA just files my return every year with the info my dad provides. I did not provide the CPA with my foreign income. I didn't realize I needed to as I've never filed my own taxes before.

The amounts were approximately:

• 2024: $90K USD US income
• 2025: $50K USD US income

I paid approximately:

• 2024: $20k USD in US taxes
• 2025: $10k USD in US taxes

I now understand that I should have reported the US employment income on my Canadian return and then claimed foreign tax credits for eligible US taxes paid.

I want to correct this properly before CRA contacts me. My questions are:

1. Should I file a Voluntary Disclosures Program application, or is it enough to simply amend my 2024 and 2025 T1 returns through CRA My Account?
2. Does the fact that I was a student/young and genuinely misunderstood the reporting requirement help with penalties?
3. Can I submit the VDP application myself, or is this something I should definitely hire a cross-border CPA/tax lawyer for?
4. Is there anything specific I should include in the explanation to CRA?

Any advice from people who have dealt with this, especially cross-border Canada/US tax issues, would be appreciated.

I've got a situation where a Corp A needs to be dissolved but it has outstanding loan due to Corp B. The complication is that Corp A has two minor shareholders that are arm's length so I'm not sure best approach.

Below is the breakdown of the corporations:

• Corp A
  • Loan due to Corp B: 300K
  • inactive otherwise with no assets
  • Common shares
    • Person 1: 85%
    • Person 2: 5%
    • Person 3: 15%
  • preferred shares
    • Corp B: 85%
    • Person 2: 5%
    • Person 3: 10%
• Corp B:
  • Common shares
    • person 1: 100%

We want to dissolve Corp A without triggering debt forgiveness rules. To that end, I was thinking of having Corporation B take back and cancel the preferred and common shares of Person 2 and Person 3 at cost. This would leave person 1 owning 100% of shares in both Corp A and Corp B at which point Corp A gets amalgamated into Corp B. Does this make sense and is there any risks to this? Is there an easier way of dissolving Corp A without triggering debt forgiveness?

I’m a Canadian citizen and I’ll be moving to South Korea for about a year and I’m a bit confused about what I need to do with the CRA before I leave.

I’ve seen people mention things like tax residency, notifying the CRA, reporting foreign income, and filing Canadian taxes, factual resident and non-resident, but I’m not sure what actually applies to someone who’s only going abroad temporarily and plans to return to Canada. Do I need to let the CRA know I’m leaving? Will I still file a Canadian tax return as usual? Is there anything I should do before I leave to avoid problems later?

So, my corporation got involuntarily dissolved by the BC registry on December 2025. I have caught up with all the T2 tax filings and GST filings up to 2025. I still have tax credits and a few thousand dollars of interim balance on my GST business account. I would like to close my corporate tax account and GST tax account. My question would be:
- To be able to close tax accounts, do I need to revive the company or just let it dissolved?
- Am I going to be able to close the tax accounts without filing 2026 taxes? The business has no activity since 2025.

I would like to close down the business for good. Any suggestions are greatly appreciated. Thanks in advance!

I did not file taxes in 2021, 2022, and 2023. I did not have income but I did have 100k+ cost basis in US stocks. So I had to file form T1135 those years. Now I may be on the hook for 7500 in penalties if I file those years.

Is the proper procedure to file these years now, mark "No" on the foreign property 100k question, and then file a VDP telling them I made a mistake?

Will I be asked to pay the penalties right away while they process the VDP? I don't have 7500 to pay them right now. I would greatly appreciate any guidance

Hi all,

I am unfortunately late on filing my taxes this year because of some family health crises.

I am a little unsure of what province I should file taxes in this year. I am born and raised in Alberta, out of province for my PhD in Ontario and I have always filed in Alberta because of my student status. But this year, my boyfriend and I bought a condo together in ON.

Does my student status mean I should/can still file in AB? Or do I now need to file in ON? And if I change my province of residence for taxes do I need to change it for my driver's license, health card, and student loan?

Thank you

Hello,

I made about 73K last. My wife has no income. I have a 19 year old dependent with a disability with no income, and two children that were under 18 in 2025.

Do you think it's typical that someone in my spot would owe after the refund is completed? I have combed through the program but none of the things that would deduct further are applicable to my situation.

It seems unusual as 73k for 5 people is not very much in 2025! Any advice?

So after not getting my tax return after a while I did some digging and found my direct deposit was still the account HnR block used to get my return after I dealt with them back in 2023.

It was apparently something called a DC account? I called HnR block, they transfered me to DC, and they said they couldn't help me either.

Is this money just gone? It was like 4k and I could really use that cash.

Please read the post before making up your mind. Thank you in advance for any advice. I am going to visit an advisor as well but I want to hear what you guys have to say as well.

I’m about to earn nearly $2M as a one-time income. It can legally be earned either personally or through my corporation. The corporation has no other income this year. The income will qualify for the small business rate (for the first $500k obviously).

I already have a house. I will keep this house, put it up for rent, and move into a new house that I plan to buy with my income.

Here are the benefits I see for earning and buying the house through my corp:

1. I will pay about $500k in income tax, rather than $900k if I take the money personally.
2. The money will never leave the corporation, so no personal taxes are paid.
3. I will pay fair market value rent, and even at that point, I will barely have corporate rental/passive income profit due to the interest writeoff being so high. Plus property taxes and maintenance chip off some too.
4. I will pay the “rent”/mortgage using other income sources, so no dividends are being taken and taxed.
5. If I get sued for some reason, I still have another house.
6. The capital gains benefit is not that high to create a big difference. Let’s say I buy at $3M and sell at $3.8M. The capital gains on that are about $100k. The total tax bill is still much lower than the personal (non-corporation) route.

As long as the money never leaves the company, is this a good idea? I defer/save on a lot of tax.

I know it’s usually not a good idea but I am not seeing any flaws in this due to my specific situation.

I can spend money throughout the year without thinking twice but something about paying a big CRA bill all at once is hard 

The money is already set aside and it's not like I'm surprised by the amount but I still end up staring at the confirmation screen for a minute before I click pay

I'm convinced it's just psychological. Anyone else?

Hi, can anyone tell me the absolute options to pay a corporate tax amount and GST?

We are not set up for CRA PAD, we use BMO and Valley First for banks

Is the post office actually legitimate way to pay?

I fear that if we don’t pay tonight that we will be late if we pay through the bank(s) it says if we use the tax centres it’ll be considered late?

I read online there might be a possible workaround if the client pays it as an online bill rather than through the tax centre? And just uses CRA as the payee with the business number?

Line 1000 or 1001 - Cash - Is this the cash company has got (like in a bank) or is it cash added to the company during the year?

Line 1180 - Short term deposits - Isn't this the amount of money company has invested in equities at the end of the year - Dec 31 for example?

Thank you for any help

Hi all - I work for a BC corporation

We are waiting on an estimate from the accountant to pay the corporate tax amount as our YE was Dec. Accountant has promised to have the number this evening

We will owe. This our first time paying corporate tax, not sure we’re set up through the CRA to pay for the first time

What are our options to pay on time? We’re using BMO. If we pay online through the online banking system tonight, will it be considered on time for for the CRA tomorrow if the bank processes it? I’m confused how the CRA looks at “on time” payments…and we don’t have one of the stupid remittance vouchers you can order. Is going to Canada Post to pay a valid same day payment option?

Can someone explain this like I’m 5 please

I know I’m stupid for not fixing this earlier but it is what it is. Basically I had a small incorporated business during Covid and had about $8k revenue in 2021. I stopped running the business in 2022 onwards and now I get a letter from government saying I have not filed any corporate year end taxes. They did an estimate of my business and pre filed for me and they say I owe around $20k in taxes, but they said if I file them now, the amount owe ing will be substantially less. They want me to file for 2021 2022 2023 and up until October 2024. I have no knowledge of how to file them but they said I just need nil returns for 2022-2024. What is the simplest way I can file? I’m trying to do it at home. Paper or online filing? I tried doing it with an online software but there are so many sheets I need to fill and I’m not sure what to input for the box numbers. thank you in advance!