Frequently Asked Questions
Clear answers on business setup, accounting, corporate and personal tax, payroll, GST/HST, transfer pricing, CRA audit support, and trusts and estates in Canada, from Bestax Accountants.
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General Questions
About Bestax
Bestax is an accounting, tax and advisory firm for mid-size to large corporations and international groups, with offices in Canada and Dubai. We handle business setup, accounting, corporate and personal tax, payroll, GST/HST, transfer pricing, CRA audit support, and trusts and estates.
Mid-size to large corporations, multinational groups with Canadian operations, foreign companies entering Canada, and owners running businesses across Canada, the USA and the UAE. We also look after their shareholders' personal tax, trusts and estates.
Yes. With a team of more than 35 professionals in Canada and Dubai, it serves multinational groups and mid-size corporations across Canada, the USA and the UAE, and its client reviews are published on Google and Trustpilot.
Yes. That is our core work. We handle transfer pricing, Form T106, cross-border and US tax, and UAE corporate tax, with teams in Canada and Dubai working on both sides of the same group.
One firm covers Canada, the USA, the UAE and Panama, so a group gets a single point of contact instead of separate advisors in each country. Every engagement starts with a written, fixed-scope quote.
Haseeb Hamdani, FCCA, Director of Accounting & Taxation. He has more than ten years of tax and accounting experience across Canada, the UAE and other markets, and oversees the firm's corporate and cross-border work.
Yes. Our multilingual advisors have served clients of more than 20 nationalities. Tell us your preferred language when you book and we will match you where we can.
No. We work with clients across Canada and internationally entirely online: secure uploads, electronic filing, and meetings by phone or video. In-person meetings at our Canada and Dubai offices are available by appointment.
We ask about your group structure, your records and any deadlines. Then we tell you what needs to be done, what we can take on and how we would price it. There is no obligation.
Fixed fees for defined filings and registrations, monthly retainers for ongoing accounting and payroll, and project fees for advisory work such as transfer pricing. You get a written quote before work starts, with no hidden fees.
Yes. Our free Income Tax Calculator estimates personal tax, and our Ontario Payroll Calculator works out employee deductions for each pay.
Business Setup Questions
Canada
Most incorporations are approved within 1 to 3 business days. Timing depends on the province and how quickly you send your ID and details. A named company needing a NUANS report can take slightly longer.
The name search, incorporation filing, CRA Business Number and tax accounts, a corporate minute book, and time with our business advisors. You see the full price before we start.
Usually a government-issued ID, your proposed company name and who will own and direct the company. We guide you through the share structure and director details.
Federal incorporation protects your name across Canada and suits businesses planning to grow nationally. Provincial incorporation is simpler and cheaper if you operate in one province. We help you choose before we file.
We register federal corporations and provincial companies in Ontario, British Columbia, Alberta and Quebec. Each has its own forms and rules, and we handle them for you.
Yes. You do not need to be a Canadian citizen or resident to own a Canadian company. Ontario, BC, Alberta and Quebec do not require a Canadian-resident director, and federal corporations dropped that requirement in 2022.
Only for a named corporation. A NUANS report confirms your name is available and meets naming rules, and we order it for you. A numbered company does not need one.
Yes. Once the company is registered, we open your Business Number and add the GST/HST and payroll accounts you need, so you can invoice and hire from day one.
Yes. Many owners prefer a commercial address for privacy and banking. We can provide a registered office address and forward government mail to you.
Yes. We keep your minute book current with resolutions and shareholder records, and remind you of your annual return so the company stays in good standing.
Yes. Bank account opening is an add-on service. We also offer legal document drafting, bookkeeping and tax filing once the company is set up.
You get a full refund if we have not started work. Once your documents are prepared, a partial refund applies.
USA
Yes. You do not need US citizenship, residency or a Social Security number. We form LLCs and corporations in Delaware, Wyoming, Florida, Texas, New York, California and Nevada, fully online.
Delaware suits companies raising investment. Wyoming has low fees and strong privacy. If you will have staff or an office in another state, you usually register there too. We recommend a state after one call.
Yes. A non-US owner can get an Employer Identification Number from the IRS without an SSN. You need it to open a US bank account and file US returns. We apply for it as part of setup.
A single-member LLC owned by a non-US person must file Form 5472 with a pro forma Form 1120 every year, even with no income. The IRS penalty for missing it starts at $25,000.
The CRA treats a US LLC as a corporation, not a flow-through. This can create double tax if the setup is not planned. You may also need Forms T1134 or T1135. We plan both sides before you form the LLC.
UAE
Yes. Free zone companies, such as those in IFZA or RAKEZ, can be formed remotely. With offices in Canada and Dubai, we handle the licence, visa and bank account steps for you.
A free zone company is quicker and cheaper and suits international and online trade. A mainland company can trade directly with customers anywhere in the UAE. Both allow 100% foreign ownership for most activities.
Yes. UAE corporate tax is 9% on taxable profit above AED 375,000. Qualifying free zone companies can pay 0% on qualifying income if they meet the conditions. Every company must register for corporate tax.
If you stay a Canadian tax resident, you are taxed on worldwide income, and the CRA may treat the UAE company as Canadian if it is managed from Canada. Leaving Canada can trigger departure tax. We plan the move on both sides.
Panama
Panama uses a territorial tax system: profit earned outside Panama is generally not taxed there. That makes it popular for international trading and holding companies. We form the company through a licensed local registered agent.
No. If you live in Canada, the CRA can tax the company's passive income in your hands each year, and you must report it on Forms T1134 or T1135. We review the plan before you form the company.
No. Formation is done remotely through a registered agent. Some banks ask to meet you before opening an account, so check bank requirements early.
FINTRAC MSB Setup
Yes, if you offer money services such as currency exchange, money transfers or dealing in virtual currency. You must register with FINTRAC before you start. We prepare and file your registration.
A compliance program: a named compliance officer, written policies and procedures, a risk assessment, staff training and a review every two years. We draft these with you.
Every two years. FINTRAC must also be told about key changes, such as new owners or agents, within 30 days.
Yes. Foreign money services businesses that direct services to people in Canada must register with FINTRAC and meet the same anti-money laundering rules.
Accounting Questions
Accounting & Bookkeeping
It is a fixed monthly fee based on your transaction volume, number of entities, bank accounts and currencies, and whether payroll, GST/HST or consolidation is included. Send us three months of bank statements and we will quote within one business day.
QuickBooks Online, Xero, Zoho Books and Sage. We can take over your existing file, set up a new one, or help you pick the right platform for your size and GST/HST needs.
A profit and loss statement, a balance sheet and a cash flow summary, with every bank and credit card account reconciled. You see where the business stands now instead of waiting for year end.
No. If your current system works, we keep using it. If it causes problems, such as bank feeds that never reconcile or GST/HST reports that need manual fixes, we explain why a switch makes sense first.
Catch-Up Bookkeeping
We enter the missing transactions, clean up old entries and reconcile every bank and credit card account. Once the books are current, we file any overdue returns in order, starting with the oldest year.
It depends on how many years are behind and how many transactions you have. One year for a single company typically takes 2 to 4 weeks once we have your statements. You get a fixed timeline after our first review.
Yes. We rebuild the records from bank and credit card statements and help you get copies of key invoices. The CRA expects records to be kept for six years from the end of the tax year they relate to.
Possibly. If the CRA has not contacted you yet, the VDP can cut penalties and most of the interest on what you owe. We catch up the books first, then tell you whether a disclosure is worth making.
Year-End Financial Statements
Yes. Every T2 return must include financial statement information in the CRA's GIFI format. Banks, landlords and investors also usually ask for annual statements.
Before your T2 is due, six months after your year end. Aim for three months so you know any tax owing before the balance-due date, which is two or three months after year end.
Accounting System Setup
A single-entity setup usually takes 2 to 4 weeks. Multi-entity or multi-currency projects with many integrations take 6 to 8 weeks. It includes your chart of accounts, GST/HST tax codes, bank feeds and user permissions.
Yes. We clean your data, import it and check that opening balances match. We keep a backup and an audit trail during the move, and train your team on the new system.
Yes. We link the tools you already use so sales, payments and payroll flow into your books automatically, cutting manual entry.
Government Grants
Yes. We find grants and incentive programs that fit your business and prepare the financial information and applications funders ask for.
Tax Questions
Personal Tax
Personal Tax Return (T1)
Most people must file and pay by April 30 of the following year. If April 30 falls on a weekend, the deadline moves to the next business day.
If you owe tax, the penalty is 5% of the balance plus 1% for each full month late, up to 12 months. A repeat late filing within three years doubles that to 10% plus 2% a month, up to 20 months. Interest is added daily.
Yes. We gather your missing slips, prepare each return and file them in order. If the CRA has not contacted you yet, we also check whether the Voluntary Disclosures Program would reduce penalties.
Self-Employed Tax
If you or your spouse are self-employed, you can file by June 15. Any tax you owe is still due April 30, so interest runs from that date.
Reasonable costs of earning business income, such as supplies, phone and internet, professional fees, and the business share of vehicle and home office costs. You report income and expenses on Form T2125.
Yes. You pay both the employee and employer share of CPP contributions on your net self-employment income, calculated on your tax return.
Usually yes, if your net tax owing is more than $3,000 ($1,800 in Quebec) this year and in either of the two previous years. The CRA sends instalment reminders, and we set up a payment plan for you.
Rental Income Tax
Net rental income is added to your other income and taxed at your marginal rate. You report it on Form T776 and can deduct mortgage interest (not principal), property tax, insurance, repairs and management fees.
Your tenant or agent must withhold 25% of gross rent for the CRA. You can file Form NR6 to have tax withheld on net rent instead, and then a section 216 return to pay tax on actual profit.
Newcomer & Non-Resident Tax
Report your world income from the date you became a resident. You need your SIN, your arrival date and any income earned after that date. Filing also starts your benefits, such as the GST/HST credit and Canada Child Benefit.
Only in some cases: if you worked or ran a business in Canada, sold Canadian property such as real estate, or want back tax that was over-withheld. A non-resident selling Canadian property also needs a clearance certificate.
Departure Tax
When you stop being a Canadian resident, you are treated as having sold most of your property at fair market value, and tax is due on the gain. Canadian real estate, RRSPs and pensions are generally excluded.
A final-year return showing your departure date, Form T1243 for the deemed sales, and Form T1161 if your property is worth more than $25,000. You can post security on Form T1244 to defer paying the tax.
Corporate Tax
T2 Corporate Tax Return
Six months after your fiscal year end, so a December 31 year end means June 30. Tax owing is due two months after year end, or three months for many small Canadian-controlled private corporations.
Yes. Every resident corporation must file a T2 each year, even with no income or tax owing. Skipping a nil return can still lead to penalties and CRA demands to file.
Most corporations must, for tax years starting after 2023. Filing on paper when you must e-file can cost a $1,000 penalty. We file every T2 with CRA-certified software.
Yes, if it is a Canadian-controlled private corporation. The deduction lowers the tax rate on up to $500,000 of active business income a year. We confirm eligibility and apply it.
It depends on your goals. Salary builds RRSP room and CPP, while dividends mean less payroll paperwork. Many owners use a mix. We run the numbers each year before you decide.
Yes. If your corporation pays dividends of $50 or more to a person in a year, it must issue a T5 slip and file the T5 summary by the last day of February. We prepare them with your T2.
Yes. If your corporation owes more than $3,000 a year, the CRA expects monthly or quarterly instalments. We calculate them, set the schedule and remind you before each date.
Yes, if it carries on business in Canada or sold taxable Canadian property. We review the treaty position and the CRA filing rules for your situation.
Late & Prior-Year Filing
5% of unpaid tax plus 1% for each full month late, up to 12 months. Repeat late filers pay 10% plus 2% a month, up to 20 months. Interest is charged on top.
Yes. We bring the books up to date, then file each T2 in order, oldest first. If the CRA has not contacted you, we check whether a voluntary disclosure would cut penalties and interest.
Payroll
Payroll Processing
Yes. We run payroll for workforces of any size across Canada, from one office to thousands of employees in several provinces, and apply each province's income tax, employer health tax and workers' compensation rules.
Yes. We handle overtime, bonuses, variable pay, multiple pay rates and shifts. We calculate CPP, EI and income tax on each pay and remit them to the CRA on time.
Most small employers remit by the 15th of the month after the pay date. Larger employers remit more often, based on their average monthly withholding. We track your remitter type and pay on time.
Usually within one payroll cycle. We collect year-to-date figures and employee details from your old provider, so pay and deductions carry on without a gap.
T4/T4A & Year-End
By the last day of February after the calendar year. Slips must reach your employees and be filed with the CRA by that date.
When an employee has an interruption of earnings, such as leaving, being laid off or going on leave. An electronic ROE is due within 5 calendar days after the end of the pay period in which the interruption happens.
A T4A reports non-employment payments such as fees for services, commissions to self-employed people and pensions. We review who you paid and issue the right slips.
Payroll Setup
A CRA payroll account, WSIB registration within 10 days of hiring your first worker in most industries, a TD1 from each employee, and Ontario EHT registration once your payroll passes the exemption. We set up all of it.
Only if your total Ontario payroll is above the $1 million annual exemption for eligible employers. Rates run from 0.98% to 1.95% of payroll.
GST/HST
GST/HST Registration
Once your taxable sales pass $30,000 in one calendar quarter or over four consecutive quarters. You then have 29 days to register and must charge tax from your effective date.
It can make sense if you have high start-up costs, because you can claim back the GST/HST you pay. You must then charge tax and file returns, usually for at least one year.
Yes. An effective date within 30 days can be set when you register. Earlier dates need a separate backdating request, which we prepare, along with the tax owed on past sales.
Yes. Ride-share drivers must register from their first ride, even below $30,000. We register drivers, file their returns and claim the vehicle costs they are entitled to.
Often yes. Non-residents selling digital products, services or goods to Canadian consumers can be required to register and collect GST/HST. We review what and how much you sell first.
GST/HST Return Filing
Annually if taxable sales are $1.5 million or less, quarterly up to $6 million, and monthly above that. You can choose to file more often, for example to get refunds sooner.
Monthly and quarterly returns are due one month after the period ends. Most annual filers have three months after year end. Individuals with business income and a December 31 year end can file by June 15 but must pay by April 30.
Generally the rate where the customer receives the goods or services. An Ontario business selling to an Alberta customer usually charges 5% GST, not 13% HST.
Most businesses with taxable sales of $400,000 or less qualify. We compare it with the regular method using your real numbers, and file Form GST74 if it saves you money.
1% of the balance owing plus 0.25% for each full month late, up to 12 months, plus interest. We file missed returns in order to stop the cost growing.
Transfer Pricing
Transfer Pricing
Yes, if your Canadian company buys, sells, lends or charges fees to related companies outside Canada. Prices must match what unrelated parties would agree to. Documentation must exist by your T2 due date to protect you from penalties.
10% of the net adjustment if it exceeds the lesser of $5 million or 10% of gross revenue. Budget 2025 proposes $10 million for tax years beginning after November 4, 2025. Good documentation is the main defence.
Currently within three months of a written request. Budget 2025 proposes cutting this to 30 days for tax years beginning after November 4, 2025.
A search of comparable independent companies that sets an arm's-length range for your prices or margins. Most groups refresh the full search every three years and update the financials yearly.
Any Canadian resident whose transactions with non-arm's-length non-residents total more than $1 million in the year. It is due with your T2, and late filing costs up to $2,500 per return.
Yes. Written agreements set out the terms the CRA will test your prices against. We draft or review them alongside your documentation.
International & Cross-Border
International & Cross-Border Tax
Yes, if the total cost of your foreign property, such as foreign bank accounts, shares or rental property, was more than $100,000 at any time in the year. Penalties for missing it start at $25 a day.
Usually not. Canada's tax treaties and foreign tax credits reduce or remove double tax, but you must still report the income in Canada. We file both sides.
US citizens and green-card holders in Canada must file every year, plus an FBAR if foreign accounts top US$10,000. Other Canadians file if they have US income, such as rental or business income. Snowbirds may need Form 8840.
Yes. Preparing both together lets us match income and foreign tax credits on each side, so you are not taxed twice.
CRA Audit Support Questions
CRA Audit & Review
Do not ignore it. Note the response deadline, which is often 30 days, and send us a copy. Once you authorize us as your representative, we deal with the CRA directly and ask for more time if needed.
A review is a desk check of specific claims, handled by letter. An audit is a wider examination of your books and records and can include a visit. We prepare your documents and represent you in both.
Normally three years from your original notice of assessment for individuals and Canadian-controlled private corporations, and four years for other corporations. There is no time limit if the CRA finds misrepresentation from carelessness or fraud.
Yes. With your authorization through Represent a Client, we handle all calls, letters and document requests, so you do not have to speak to the CRA yourself.
Notice of Objection
Corporations have 90 days from the date of the notice of assessment. Individuals have until the later of 90 days from that date or one year after their filing deadline.
A CRA appeals officer, separate from the auditor, reviews your case and confirms, changes or cancels the assessment. If you still disagree, you can appeal to the Tax Court of Canada within 90 days of the decision.
Generally no. The CRA usually holds off collecting disputed income tax while the objection is open, though large corporations must pay half. Interest keeps running, so paying can reduce the cost if you lose.
Voluntary Disclosures (VDP)
It lets you correct unreported income, unfiled returns or undeclared foreign assets in exchange for penalty and interest relief. Accepted applicants are also protected from prosecution. You apply on Form RC199 with full supporting documents.
For applications from October 1, 2025: if the CRA has not contacted you about the issue, 100% of penalties and 75% of interest are waived. If the CRA has already raised it, up to 100% of penalties and 25% of interest.
Once you are under CRA audit or investigation on the issue, or if the non-compliance is egregious. The disclosure must be complete, and you must pay the tax owing once the application is accepted.
Trusts & Estates Questions
Trusts & Estates
Most trusts pay tax at the top personal rate on income they keep. Paying income out to beneficiaries moves the tax to their lower rates, and an estate can use graduated rates for up to 36 months after death.
Ontario's Estate Administration Tax is 1.5% of an estate's value above $50,000. Alter-ego trusts, named beneficiaries on accounts and secondary wills can reduce what passes through probate. We plan this with your lawyer.
Yes. An estate freeze locks in today's share value so future growth passes to your children or a family trust. A section 85 rollover moves assets into a corporation without immediate tax. We plan both with your lawyer.
Yes. Income paid to non-resident beneficiaries generally has 25% withholding tax, often reduced by treaty, plus extra reporting. We handle the Canadian filings and withholding.
T3 Trust Return Filing
Most express trusts must file every year, even with no income. Exceptions include trusts that existed for less than three months and trusts holding only listed assets, such as cash and GICs, worth $50,000 or less all year.
90 days after the trust's year end. For a December 31 year end, that is usually March 31. T3 slips for beneficiaries are due on the same date.
The beneficial ownership schedule. It lists the name, address, date of birth, country of residence and tax number of every trustee, beneficiary and settlor, and anyone who controls the trust. Missing it can cost $25 a day, up to $2,500.
Final Return for a Deceased Person
If death occurred from January to October, the final return is due April 30 of the next year. For November or December, it is due six months after the date of death.
A final T1 return for the person who died, sometimes optional returns for certain income, and a T3 return for the estate each year until it is wound up. We prepare all of them and keep clear records for beneficiaries.
It confirms the person's and the estate's taxes are fully paid. Executors request it on Form TX19 before distributing the estate; without it, an executor can be personally liable for unpaid tax.
Trust Setup
Family trusts, alter-ego and joint partner trusts, spousal trusts, charitable trusts and trusts for a family member with a disability. We help you choose the right type and structure it for the best tax result.
Yes, if you are 65 or older. You can move assets into it without immediate tax, and they pass to beneficiaries outside your will, which can cut probate fees and keep the estate private.
Yes. A well-structured trust can support a dependant with a disability over the long term while protecting their eligibility for government benefits. We work with your lawyer on the trust deed.
Most trusts are treated as selling their capital property at fair market value every 21 years, and tax is due on the gain. We plan ahead, often by distributing assets to beneficiaries before the date.
Bare Trust
No. In December 2025 the CRA said it does not expect bare trusts to file a T3 or Schedule 15 for tax years ending in 2025. Under proposed rules, certain bare trusts will file for years ending on or after December 31, 2026.
Trust Fund Accounting
Separate records of money held in trust: recording receipts and payments, reconciling trust bank accounts, and preparing reports for trustees and beneficiaries.