Innovation often comes with a price tag—but the Scientific Research & Experimental Development (SR&ED) program is one of the most generous tax incentive programs in Canada, helping businesses offset the costs of R&D. Whether you’re developing new technology, improving a process, or testing prototypes, SR&ED can provide significant financial relief. The Benefits of SR&ED Refundable tax credits – Small to mid-sized Canadian Controlled Private Corporations (CCPCs) can recover up

When it comes to taxes, the Canada Revenue Agency (CRA) has made some big changes over the years to keep up with the times. One of the latest—and most important for dental practitioners—relates to how Input Tax Credits (ITCs) are claimed. The CRA’s ITC policy has evolved significantly, and a recent court case has reshaped the rules in a way that will directly affect dental practices across Canada. Let’s break down the history, the turning point case, and the new rules coming

Introduction When it comes to taxes, accuracy matters. If a business or individual fails to report income or makes significant errors on their tax return, the Canada Revenue Agency (CRA) may impose gross negligence penalties. These penalties can be steep, and avoiding them requires proactive planning and meticulous record-keeping. This blog explains what gross negligence penalties are, how they apply to businesses, and practical steps to stay compliant. What Are Gross Neglig

What’s a PSB, and Why Should You Care? Hey, freelancers and small business owners, we need to talk. If you’re running a one-person corporation and providing services to clients, you might unknowingly fall into a tax trap called a Personal Services Business (PSB). It sounds fancy, but being classified as a PSB is the tax equivalent of getting a surprise bill after a fun night out—it’s not what you want. Higher taxes, fewer deductions, and a whole lot of “What just happened?”

Shareholder loans can be a convenient way to draw cash from your corporation without calling it salary or dividends. The Canada Revenue Agency (CRA) recently updated its guidance, and some long-standing “short cuts” now carry more risk. Here is what you need to know, stripped of legal jargon. 1. When is a loan really a shareholder loan? A loan is treated as a shareholder loan when you receive money mainly because you are a shareholder, not because you are an employee. CRA loo

1. What Happened? On 28 April 2025 the Court of Québec decided Placement PCD inc. et al. v. QRA, 2025 QCCQ 1391. The corporation had bought and maintained several high-end vehicles—think Ferraris, Lamborghinis, and a Corvette—claiming they boosted market credibility and served as “promotional” assets. It tried to deduct roughly $300,000 in costs and, at the same time, argued that no taxable benefit arose for the shareholder who could drive them. The court took a very differen