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5 BULLET FRIDAYS - Tax Mechanic News, Tips, Strategies
In this edition: A Million Dollar Tax Court Win, CRA Technical Difficulties in Your Favor?
Tax Mechanic
September 29, 2023
Bite size tax and finance related information that could save you $$$
There is a strategy called "tax loss utilization" or "loss buying" to decrease a company’s tax bill. Your loss could be worth money.
Interested? Let me explain... book a call with me here!
Toronto croissant factory wins million-dollar battle with the CRA
A North York industrial bakery, Fiera Foods, has emerged victorious in a significant battle with the Canada Revenue Agency over tax refunds amounting to millions of dollars. The CRA had denied Fiera Foods $5.7 million in sales tax credits due to the company's extensive use of temporary labor from certain tax-delinquent temp agencies.
These agencies not only failed to remit sales tax to the government but also had dubious addresses and minimal workforces. This led CRA auditors to question whether these agencies could have genuinely provided Fiera with the claimed low-wage labor worth millions of dollars. Read more about the case here!
Join the conversation next Tuesday at noon on my TikTok channel!
Tax Loss Utilization
Last week we have elaborated on the power of capital gains as a powerful tax strategy that can help you build wealth. We will continue along that line with a bit more details:
Tax loss utilization, is a strategy used to lower your overall tax liability by offsetting capital gains with capital losses. This strategy is commonly used in the context of investments, particularly with stocks, bonds, and other securities.
Here's how it works:
Capital Gains and Capital Losses: In the world of investments, when you sell an asset for more than what you paid for it, you realize a capital gain. Conversely, if you sell an asset for less than your original purchase price, you incur a capital loss.
Read More Here!
The best tax strategies will depend on your unique financial situation and objectives. Whether you're planning for retirement, minimizing your current tax liability, or preparing for the future, a well-thought-out tax strategy can help you keep more of your hard-earned money and achieve your financial goals.
Let’s look at your portfolio and do some tax planning. Book a free, friendly, no-obligation call!
Another CRA incompetence - this time in your favor?
The Canada Revenue Agency has once again showcased its remarkable inability to navigate the intricate world of technical difficulties and IT system transitions, resulting in a setback of about six months its collection efforts.
Technical difficulties forced the CRA to delay the resumption of key debt collection activities it had suspended early in the COVID-19 pandemic.
The CRA eventually resumed its normal debt collection practices between late 2022 and early 2023. They also decided to dip into future government payments to offset overpayments of COVID-19 individual benefits.
While the CRA did manage to roll out some of these measures as planned in October, technical hurdles with the new IT system forced the agency again to delay other offset measures. Read more here!
We won't comment... But if you would like to, we’re here to listen…
Why TikTok may be the perfect platform for your business
In the ever-changing landscape of social media marketing, TikTok has emerged as a game-changer for businesses looking to expand their online presence. While platforms like Facebook, Instagram, and Twitter have long been staples for digital marketing, TikTok offers unique advantages that make it an appealing choice for businesses of all sizes. Here are some compelling reasons why TikTok might be the perfect platform for promoting your business.
Viral Potential: TikTok's algorithm is designed to help content go viral. Even relatively unknown accounts can gain massive exposure overnight if their content resonates with users. This viral potential can skyrocket brand awareness and attract new customers faster than many other platforms.
Engagement: TikTok thrives on short-form video content, typically ranging from 15 to 60 seconds. This format is ideal for capturing and maintaining viewers' attention. Users are more likely to engage with bite-sized, entertaining videos, allowing you to convey your message quickly and effectively.
Diverse User Base: TikTok boasts a diverse and rapidly growing user base, including people of all ages and backgrounds. This diversity allows businesses to reach a wide range of potential customers and tailor their content to different demographics.
Authenticity: TikTok encourages authentic and relatable content. Users appreciate real people showcasing products or services, which can help build trust and credibility for your brand. Glossy, overly polished content is less common on TikTok, making it easier for small businesses to compete.
Trend Participation: TikTok is synonymous with trends and challenges. Participating in popular challenges or creating your own branded challenge can boost your visibility and engagement. It's an excellent way to connect with a younger, trend-focused audience.
Cost-Effective: TikTok ads are more affordable compared to some other platforms, making it accessible to businesses with smaller budgets. You can also grow organically without a significant ad spend if your content resonates with users.
Influencer Collaboration: TikTok has a thriving community of influencers who can help promote your products or services. Partnering with TikTok influencers can rapidly expand your reach and credibility.
Analytics: TikTok offers robust analytics tools to help you track your content's performance. You can monitor views, engagement, demographics, and more, allowing you to refine your marketing strategy over time.
Creativity: TikTok encourages creativity and innovation. It's an ideal platform for showcasing your brand's personality and experimenting with different content styles to see what resonates best with your audience.
Global Reach: TikTok is a global platform with users from around the world. If your business has international aspirations, TikTok can help you tap into a broader, global market.
To maximize your success on TikTok, it's essential to understand the platform's culture and trends, create authentic content, and stay open to experimentation.
Would you like some personalized tips on how to be a successful TikTokker?
We’d be happy to share how we did it! Just email us!
Recommended by the Tax Mechanic
“Here is why you should LOVE taxes”
“Here is why you should love taxes: You know, as the stoic philosophers used to say, there are things you can change, and there are things that you can’t change. So the things that you can’t change, just eliminate them from your mind and focus on the things that you CAN change!”