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Share Capital vs. Director and Officer

Tax Question:

What is the difference between an individual who owns share capital (a shareholder), a director and an officer of a private corporation?

Facts:

Shareholders are those who hold share capital of the corporation. There may be numerous shareholders who each hold different amounts of different classes of shares. These shareholders participate in controlling the corporation if they hold voting shares. A director of a corporation may or may not hold shares of the corporation. There may be one director or a board of directors for a corporation. The directors are responsible for making broad top-level business decisions. An officer is appointed by the board of directors of the corporation. The officers oversee the daily aspects of the business. Typical corporate officers include Chief Executive Officer (CEO), Chief Operating Officer (COO), Chief Financial Officer (CFO), President, Treasurer and Secretary.

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What Makes a Strong Trademark?

Tax Question:

What makes a strong trademark?

Facts:

While there are lots of factors to consider from the creative side of your branding strategy, a fundamental concern is always whether the brand is registrable. For a trademark to be “strongÓ you must be able to protect your trademark rights in that brand. Otherwise, your competitors will be able to use similar branding and ride on the coattails of the goodwill created by your brand development.

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GST on Residential Real Estate

Tax Question:

How is the Goods and Services Tax/Harmonized Sales Tax (GST/HST) applied to residential real estate?

Facts:

In real estate, the beneficial owner of the property has the responsibility to collect GST/HST and remit it to the Canada Revenue Agency (CRA). If the property is held “in trust” by another corporation or entity, the beneficial owner is still required to register and file GST/HST returns. It is common for third parties such as agents or property managers to be designated to collect GST/HST on rental income. There is a special election that allows agents to remit the GST on behalf of the owner, but the responsibility is still on the beneficial owner.

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What is the GST/HST Election-RC4616?

Tax Question:

What is the GST/HST Election-RC4616 and who can file this?

Facts:

RC4616 is an election for closely related corporations and/or Canadian partnerships to treat certain taxable supplies as having been made for nil considerations for GST/HST purposes. The corporations are defined as closely related if, at the time, not less than 90% of the value and number of issued capital shares of the subsidiary corporation are owned by the parent corporation.

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What are the Benefits of a Trademark Registration?

Tax Question:

What are the benefits of Trademark Registration?

Facts:

Filing an application for trademark registration gives you priority to your brand even before you have started using it: The filing date of your trademark application offers priority rights to the trademark throughout the country of registration, even if you have not begun to use your trademark. Generally speaking, the first to file an application gains a considerable advantage in securing rights to a trademark. For this reason, it is critical to start the registration process very early in your marketing plan.

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What are Registered Disability Savings Plans (RDSPs)

Tax Question:

What are Registered Disability Savings Plans (RDSPs)?

Facts:

An RDSP is a registered account, introduced by the federal government in 2008 and in large part due to the efforts of the Planned Lifetime Advocacy Network (PLAN). Like the registered education savings plan (RESP), it is a flexible investment account with contribution limits that allows an individual to earn tax-deferred investment income and capital gains in the account. RDSPs are also eligible for government funding through the Canada Disability Savings Grant (CDSG) and the Canada Disability Savings Bond (CDSB). There are three parties to an RDSP; a legal parent, guardian or other entity that is legally authorized to act for the beneficiary or the beneficiary (owner), a plan provider and a beneficiary. There can be multiple subscribers, promoters and beneficiaries. Contributions to an RDSP are not tax-deductible. There are no annual contribution limits. However, the lifetime contribution limit for total RDSP contributions for a single beneficiary is $200,000. Government funding is not included as part of this limit. A beneficiary may only have one RDSP active at any point in time.

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