Author: L

Shopify is a well-known Canadian multinational e-commerce platform where businesses can build online stores and sell services. Shopify has more than 121,600 merchants.

According to the Toronto Star, the Canada Revenue Agency (CRA) requires Shopify to provide 6 years of records for all merchants in Canada to verify their tax status.

In April 2023, the Minister of National Revenue filed an application to the Federal Court to order Shopify to hand over information about “Canadian resident merchants” to ensure they comply with the Income Tax Act and the Excise Tax Act.

A hearing on the application has been called for in early 2024. If successful, the Federal Court will grant the minister a court order.

The CRA has a history of imposing court orders on large corporations to combat tax evasion. Previously, eBay and PayPal have been targeted by the CRA to see if Canadian businesses are evading taxes.

Shopify may appeal just to tell their customers that they are challenging the court order, but it’s not worth investing more time and money.

The First Home Savings Account (FHSA) applies to people who did not own a home in the year the account was opened and up to four years prior. You are not eligible if your spouse owned the home during this period.

The FHSA started on April 1, 2023 and applies to those 18 and older. It’s  lifetime contribution limit is $40,000, with an annual maximum of $8,000.

An FHSA combines the benefits of a Tax-Free Savings Account (TFSA) and a Registered Retirement Savings Plan (RRSP). You can claim tax deductions on your contributions like an RRSP, and you can get tax-free withdrawals from a FHSA when you use the account to buy a home. Like RRSPs and TFSAs, investment income earned in an FHSA is tax-free.

Transfers from your registered retirement saving plans (RRSPs)  to your FHSAs are not deductible.

If you cannot or you decide not to claim some or all of your available contributions as an FHSA deduction in the year, you can carry forward that amount and may be able to claim your unused FHSA contributions as an FHSA deduction in a future year.

The contribution period for your FHSAs is a calendar year (January to December). Contributions you make to your FHSAs during the first 60 days of the year cannot be deducted on your income tax and benefit return for the previous year

There is no minimum number of days that contributions you make to your FHSAs need to stay in your FHSAs before you can deduct them on your income tax and benefit return.

If you make contributions to your FHSAs after you make your first qualifying withdrawal. Those contributions cannot be deducted for any year.

The FHSA must close after 15 years, or by the end of the year you turn 71. If you don’t buy a house in the end, you can transfer the funds to RRSP or Registered Retirement Income Fund (RRIF) without tax troubles and without affecting your normal RRSP contribution space. If you withdraw money from your FHSA for a purpose other than buying your first home, the money will be included in your income and taxed accordingly.

The one-time top-up to the Canada Housing Benefit aims to help low-income renters with the cost of renting. You may be eligible for a tax-free one-time payment of $500 if your income and the amount that you pay on rent qualify.

Eligibility

1. at least 15 years old on December 1, 2022
2. Your principal residence was in Canada on December 1, 2022
3. You were a resident of Canada in 2022 for tax purposes
4. You and your spouse or common-law partner have filed 2021 income tax return
5. In 2021, your adjusted family net income of $35,000 or less for families, or $20,000 or less for individuals
6. your 2022 rent payments are at least 30% of your 2021 adjusted family net income

Application deadline

The last day you can apply is Friday, March 31, 2023 (11:59 pm ET)