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Prior to Iryna Gabalis, I had never seen a cheerful accountant. The Navigator Consulting Group has been doing my personal business accounting since 2003. Iryna’s confidence, great knowledge and reliability are combined with her big heart. When things are getting tough, her sincere support and great smile takes the stress out of a situation. Thanks Iryna - always happy with your work.

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It is important to understand your responsibilities and how payroll works to ensure you are not assessed penalties and interest or suffer other consequences.

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Accounting FAQ

How I can determine what expenses I claim and what I don’t?

According to the Income Tax Act expense is deductible for tax purposes if it is:

—  Deductible using Generally Accepted Accounting Principles;
—  Not a capital expenditure;
—  Incurred to earn taxable income;
—  Not personal or living expense;
—  Reasonable in the circumstances.

You cannot claim some of the expenses and among them are:

—  Life insurance premiums (there is an exception where such insurance policy is used as a collateral for a business loan);
—  “Capital” expenses – those expenditures, for tax purposes, are subject to the capital cost allowance (CCA), which provides for deduction based on a percentage of cost on declining balance basis;
—  Personal expenses (there still could be a “business part” in some of them);
—  Prepaid expenses (for future periods);
—  Financing of business projects (such expenses should be amortized);
—  Most types of CRA’s interest and penalties;
—  Interest for vacant land (there is a limit you still can deduct);
—  Golf/sports clubs memberships (there are circumstances where you can deduct a portion of such fees – consult with your accountant for details);
—  Payments for some legal and accounting services;
—  Most payments for advertising in a foreign media;
—  50% of meals and entertainment expenses (some of them qualify for 100% deduction, check the CRA’s website or consult with your accountant for details).

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