This letter summarizes recent tax developments and tax planning opportunities; however, we recommend that you consult with an expert before embarking on any of the suggestions contained in this letter, which are appropriate to your own specific requirements.
If you have a bank account, or a brokerage or other financial account in a country outside Canada, and you have not been reporting the account or income from it on your income tax returns, you need to know about the “Common Reporting Standard” (CRS) rules, which have now been in force for five years.
In most cases, employees get very few deductions in computing their employment income.
Conversely, if you are self-employed, meaning that you carry on a business, you are eligible for more deductions.
If you are an employee paid by sales commissions, you fall somewhere in the middle. First, you are entitled to deductions available to other employees, which can include, among others: