Asrani CPA, Professional Corporation

10/25/2026

AsraniCPA
Your Trusted Accountant

10/24/2026

Canada Tax & CRA Update | October 24, 2026
CRA introduced several practical changes for Canadian businesses this week.
🔹 Business Tax Debt Can Now Be Managed Online
CRA’s new Manage Balance for Businesses service allows owners, directors and officers to manage outstanding payroll, GST/HST and corporate-tax balances through My Business Account.
Businesses can make payments, propose payment arrangements and request a CRA callback.
Accountants and other representatives cannot access this service through Represent a Client, so the business owner must complete the online steps directly.
🔹 More CRA Payment and Filing Options
Effective October 19, CRA added Apple Pay, Google Pay and Konek to its available payment options.
Corporations can also obtain a T2 Web Access Code online, while new email alerts can notify individuals when their SIN is added to or changed on a business account.
🔹 Budget 2026 Arrives November 5
Finance Canada has confirmed that the federal budget will be tabled on November 5.
No new tax measure arises from the announcement itself, but individuals and businesses should watch for changes affecting investment, corporate taxation, housing, owner-manager planning and personal credits.
📅 Dates to Watch
October 31 — CRA pre-filled-return preparation cutoff for potentially eligible individuals
November 2 — Practical deadline for certain October 31 T2 and GST/HST filings
November 5 — Federal Budget 2026
No material new federal or Ontario T1, T2, payroll or GST/HST legislative change was identified this week.
AsraniCPA – Your Trusted Accountant
https://asranicpa.ca/tax-assistant/⁠�

10/24/2026

10/23/2026

Added your kid to your bank account to help with the bills? CRA has a rule about that — and it's not what most people think.

CRA's own FAQ uses this exact example: a daughter added to her dad's account just for banking help, where she can't touch the money. That IS a bare trust — she's the legal owner on paper, dad's the real owner.

But being a bare trust and having to FILE are two different things:
✅ Under $50,000 all year (any asset) → no T3 filing for 2026
✅ Under $250,000 + everyone is a related individual + money-type assets → no filing
⚠️ Over $250,000 in 2026 → T3 + Schedule 15 by March 31, 2027. Late = $25/day, up to $2,500

And if both of you genuinely own the money and both can spend it? CRA says it's not a bare trust at all.

Full breakdown is in the long video on my YouTube channel. Not sure which one you are? DM me TAX for a free 15-min review 📲 416-561-4041

GTA TorontoBusiness EstatePlanning TaxHelp FamilyFinances AsraniCPA

10/23/2026

🇨🇦 **EMPLOYEE OR SELF-EMPLOYED? CRA LOOKS BEYOND YOUR CONTRACT!**

Hiring someone as an “independent contractor” does not automatically make them self-employed.

For Canadian businesses, getting worker classification wrong can lead to unexpected CPP contributions, EI premiums, interest and penalties.

**1. HOW DOES CRA DETERMINE EMPLOYMENT STATUS?**

For Ontario and other common-law provinces, CRA examines the actual working relationship, including:

✔ **Control:** Who decides how, when and where the work is performed?

✔ **Tools and equipment:** Who provides and maintains them?

✔ **Financial risk:** Can the worker incur expenses or suffer a business loss?

✔ **Opportunity for profit:** Can the worker increase earnings through business decisions?

✔ **Subcontracting:** Can the worker hire others to complete the work?

✔ **Integration and independence:** Is the worker genuinely operating a business?

No single factor automatically determines the answer.

**2. EMPLOYEE — TAX OBLIGATIONS**

An employer generally must:

• Deduct income tax, CPP and EI from wages.

• Pay the employer's CPP contributions and EI premiums.

• Remit payroll deductions and issue T4 slips.

Employees generally have more limited employment-expense deductions, subject to specific CRA requirements.

**3. SELF-EMPLOYED — TAX OBLIGATIONS**

A genuine independent contractor generally:

• Reports business income and eligible expenses.

• Pays both the employee and employer portions of CPP through their personal tax return, subject to applicable limits.

• Does not normally pay regular EI premiums on self-employment income; voluntary EI special-benefit coverage may be available.

• Maintains records and claims legitimate business expenses.

**4. DON'T FORGET GST/HST!**

Employees do not charge HST on employment wages.

Self-employed contractors making taxable supplies may need GST/HST registration when the $30,000 small-supplier threshold is exceeded under the applicable quarterly rules.

In Ontario, many taxable services are subject to 13% HST.

Eligible GST/HST registrants may also claim input tax credits on qualifying business purchases.

**5. WHAT IF THE CLASSIFICATION IS WRONG?**

If CRA determines that a contractor was actually an employee, the payer may face unpaid payroll contributions and premiums, plus interest and penalties.

A written contract or invoice alone will not protect the business if the actual relationship is employment.

**ASRANICPA TAX TIP**

Before engaging a contractor, review the real working arrangement—not just the contract wording.

Where status is uncertain, the payer or worker can request a formal CPP/EI ruling from CRA.

**AsraniCPA – Your Trusted Accountant**

Free Canadian Tax Assistant:
https://asranicpa.ca/tax-assistant/

Ask AsraniCPA – Virtual Tax Assistant Welcome! Ask your Canadian tax or CRA questions below. This virtual assistant provides general information only. For personalized advice, please contact AsraniCPA directly.

10/22/2026

That coffee you bought your client? It's a tax deduction — half of one ☕

Meals & entertainment are 50% deductible (ITA s. 67.1): $8 client coffee = $4, $200 client dinner = $100. It has to be business, though — your solo latte doesn't count. Keep the receipt, and note who you met.

Not sure what counts? Reply TAX or DM me for a free 15-min review 📲 416-561-4041

10/22/2026

🏠 WORKING FROM HOME? THE AUTOMATIC $500 TAX CLAIM IS GONE

Many employees still believe they can claim $2 for every day worked from home. That temporary flat-rate method applied only to the 2020–2022 tax years.

For 2023 and later years, eligible employees must use the detailed method, calculate actual expenses and retain supporting documents. Home office expenses for employees
When can an employee qualify?
Generally, you must:

✅ Be required to work from home under a written or verbal arrangement—including a formal voluntary telework arrangement; and

✅ Work from home more than 50% of the time for at least four consecutive weeks; or

✅ Use the workspace exclusively to earn employment income and regularly meet clients, customers or other people there.

Your employer must complete and sign Form T2200, and you calculate the deduction on Form T777. Expenses reimbursed by the employer cannot also be deducted. Home office expenses ...
What can employees claim?
Salaried and commission employees may generally claim the employment-use portion of:
- Electricity, heat and water
- Home internet access fees
- Maintenance and minor repairs
- Rent, if they rent their home
Commission employees may also qualify to claim an allocated portion of home insurance and property taxes.

Employees cannot claim mortgage interest, mortgage principal, furniture, renovations or other capital expenses. canada.ca
How is the workspace percentage calculated?
If a dedicated office occupies 150 square feet of a 1,500-square-foot home, the starting allocation is 10%.

If the space is also used personally—such as a dining-room table—the calculation must also reflect the time it is used for employment. CRA’s example divides weekly work hours by the 168 total hours in a week. Home office expenses ...
Self-employed taxpayers follow different rules
A sole proprietor may qualify if the workspace is:
- The principal place of business; or
- Used only to earn business income and regularly and continuously to meet clients, customers or patients.
Eligible costs may include allocated utilities, insurance, property taxes, mortgage interest, rent and maintenance.

However, business-use-of-home expenses cannot create or increase a business loss. Unused eligible amounts may be carried forward. Claiming CCA on part of the home can produce recapture or capital-gain consequences when the property is sold, so professional advice is recommended before claiming it. canada.ca

Practical takeaway: Obtain Form T2200 early, retain every receipt and document how the workspace percentage was calculated.

CRA—Employee home-office expenses
CRA—Business-use-of-home expenses

AsraniCPA – Your Trusted Accountant
https://asranicpa.ca/tax-assistant/


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Ask AsraniCPA – Virtual Tax Assistant Welcome! Ask your Canadian tax or CRA questions below. This virtual assistant provides general information only. For personalized advice, please contact AsraniCPA directly.