RC4070(E) Rev. 17

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This guide uses plain language to explain the most common tax situations. It is provided for information only and does not replace the law.

Unless otherwise stated, all legislative references are to the Income Tax Act and the Income Tax Regulations.

Table of contents

• Is this guide for you?
• Definitions
• Chapter 1 – Setting up your business
  • Finding information on the web
  • Business Structure
    • Sole proprietorship
    • Partnership
    • Corporation
    • Corporation's debts
  • Business Number
  • Keeping records
    • Legal requirements for keeping records
    • Retaining and destroying records
  • Bringing assets into a business
    • Buying a business
• Chapter 2 – Goods and services tax/harmonized sales tax (GST/HST)
  • What is the GST/HST?
  • Who pays the GST/HST?
  • Do you have to charge the GST/HST?
  • Should you register for the GST/HST?
  • Fiscal year for GST/HST purposes
  • Reporting periods
  • Input tax credits
  • Calculating your net tax
    • Bad debt adjustments
  • GST/HST returns
  • Filing and remitting due dates
    • Monthly and quarterly filers
• Chapter 3 – Excise taxes, excise duties, the softwood lumber products export charge, and the Air Travellers Security Charge
  • What are excise taxes and excise duties?
  • Softwood lumber products export charge
  • Air Travellers Security Charge
• Chapter 4 – Payroll deductions and remittances
  • Do you need to register for a payroll program account?
  • What to deduct from your employees' remuneration
    • Canada Pension Plan/Quebec Pension Plan
    • Employment Insurance
    • Income tax
    • Remittances
  • How to report payroll deductions
• Chapter 5 – Income tax
  • Accounting for your earnings
    • The accrual method
    • The cash method
  • Fiscal period for income tax purposes
  • Income
  • Expenses
  • How to report your business income
    • Sole proprietor
    • Partnership
    • Corporation
• Chapter 6 – Audits
  • What is an audit?
  • Underground economy
  • Tax alert
• Chapter 7 – Objections and appeals
  • Income Tax
  • How to register a formal dispute
• Chapter 8 – At your service
  • Digital services for businesses
  • Advance income tax rulings and interpretations
  • Scientific Research and Experimental Development (SR&ED) Program
  • Canada business service centres
  • Innovation, Science and Economic Development Canada
  • Your rights, entitlements, and obligations
  • What is the Voluntary Disclosures Program?
  • Cancel or waive penalties or interest
• Important dates for businesses
  • Due dates
• Addresses on our website
• Forms and publications
  • Guides
  • Pamphlets, brochures, and slips
  • Forms
  • Archived Interpretation Bulletins
  • Income Tax Folios
  • Information circulars
  • Excise duty memoranda
  • Excise tax and special levies memoranda
  • GST/HST memorandum
• Online services
  • Online services for individuals
  • Online services – Small businesses and self-employment
  • MyCRA – Mobile app
  • Electronic payments
• For more information
  • What if you need help?
  • Direct deposit
  • Forms and publications
  • Electronic mailing lists
  • Tax Information Phone Service (TIPS)
  • Teletypewriter (TTY) users
  • The Taxpayer Bill of Rights
  • Service complaints
  • Reprisal complaint
  • Tax information videos

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