Barrett Tax Law - Blogs

Deducting life insurance costs: Why opportunity may be overlooked (Originally on The Lawyer’s Daily)

By Dale Barrett and Simon Townsend (January 26, 2021, 12:42 PM EST) -- In part one, we discussed paragraph 20(1)(e.2) in the Income Tax Act (the Act), which allows an individual or business to deduct the reasonable cost of life insurance in the event it is used as collateral in a business financing agreement. We also discussed when this provision would be useful. In part…

Read on...

Social media influencers and game streamers: Beware of CRA (Originally on The Lawyer’s Daily)

Social media influencers and game streamers can earn hundreds of thousands of dollars per year and are paid in both cash and merchandise. What many of them don’t realize is that the $3,000 free trip to Hawaii that they received as promotional consideration may end up costing them $1,500 in taxes, the $400 belt they received and reviewed could cost them $200, and that $75…

Read on...

Deducting life insurance costs: Paragraph 20(1)(e.2) of Income Tax Act explained (Originally on The Lawyer’s Daily)

By Dale Barrett and Simon Townsend (January 18, 2021, 3:21 PM EST) -- The cost of life insurance is a cost which is usually borne by individuals and is not something that people think of as a deductible expense. With numerous deductions for loss from a business (or property) available in Canada’s tax legislation, it is possible if not probable that some opportunities will be…

Read on...

Year End RESP Considerations

  While many Canadians are aware that the government provides annual grants on contribution to RESPs, many people are simply unaware of the small but important nuances in maximizing those grants. The Canada Education Savings Grant (“CESG”) is currently limited to 20% of the annual RESP contributions, up to a maximum annual amount of $500 per child. To receive the maximum amount, one should contribute…

Read on...

COVID-19 — Updates on Employment Expenses

To Whom It May Concern: On September 11, 2020 the Canada Revenue Agency (“CRA”) conducted a consultation hosted by the Canadian Chamber of Commerce. At this consultation, the CRA provided guidance on the deductibility of home office expenses as a result of the COVID-19 pandemic. This memorandum explains (1) what the law is on the topic of home office expense deductions for employees; and (2)…

Read on...

COVID 19 – New Deductions From Income Sources

The following are considerations on deductions that independent contractors and salaried employees may count against their income due to the current COVID-19 pandemic. If salaried employees are required by contract (written or implied) to maintain a home office, they fulfill over 50% of employment duties in their home office, and their employer completes a Form T2200, then they may deduct expenses for that home office.…

Read on...

So You’re Working From Home – Deduct your Expenses and Pay Less Tax

Almost all of us have been working from home during the Covid-19 pandemic and many of us will continue to work from home for some time to come. Google just announced that it is going to have its employees to work from home for at least the next year, and personally I have no immediate plans to bring all my employees back to my office.…

Read on...

Estate Freezes: A Silver Lining of COVID-19 (Originally On The Lawyer’s Daily)

With the world in flux and an unprecedented shutdown of the world’s economy, those who were planning to transfer businesses to the next generation have been given what is (hopefully) a once-in-a-lifetime opportunity to defer additional taxes for many years. As valuations of investments and businesses — both public and private — have reduced sharply, unless you are in the hand sanitizer business, right now…

Read on...

Wondering about Canada’s 75% Emergency Wage Subsidy?

Here is what we know so far about Canada's Emergency Wage Subsidy, a government program helping businesses avoid having to lay-off their employees during the Covid-19 Pandemic. We will be updating this article as new details are released.    The Canada Emergency Wage Subsidy is for businesses small and large - there is no minimum employee requirement   In order to be eligible, companies must…

Read on...

A Sad Story about Mr. X. from Country Y (Originally on The Lawyer’s Daily)

Meet Mr. X. Don’t judge him by his country of residence. It is not his fault. It wouldn’t be fair. He was taken there as a child by his parents who were fleeing another country for a better life. They could never have predicted how the government of Mr. X’s adopted country would treat him when he grew up.   In fact, the government has…

Read on...

Hear From Our Clients


"Had a free phone consult with Dale this morning. I had what I thought was an insurmountable tax problem that has had me sleepless for weeks. But after considering the information I provided on my situation, Dale assured me I was not in a situation that would result in any problems and in the remote chance the CRA did come calling, he told me what information to provide to clarify the issue."

Canadian Small Business Owner

“I retained Mr. Barrett for help with the appeal of an audit. Even after his fees were paid I saved over $45K. No complaints here. I would do it again. Thank you sir!”

Canadian Small Business Owner