J Bakshi, CPA Inc.

J Bakshi, CPA Inc. J Bakshi, CPA Inc. With a team of highly skilled and experienced professionals, we offer

is a leading provider of comprehensive accounting and taxation services, committed to delivering precision, expertise, and reliability to businesses and individuals.

How Canada’s 2025 Middle-Class Tax Cut Works and What It Really Means for Your ClientsCanada’s 2025 middle-class tax cut...
12/11/2025

How Canada’s 2025 Middle-Class Tax Cut Works and What It Really Means for Your Clients

Canada’s 2025 middle-class tax cut introduces an important change for individual taxpayers. As of July 1, 2025, the federal government has reduced the lowest marginal personal income tax rate from 15% to 14%. Because this adjustment takes effect mid-year, the effective rate for 2025 is 14.5%, with the full 14% rate applying in 2026 and onward.

This reduction applies to taxable income within the first federal tax bracket and is expected to provide modest savings for millions of Canadians. Many individuals will see up to a few hundred dollars in annual tax relief once the rate is fully phased in.

To ensure taxpayers do not face unintended increases in net tax liability due to changes in credit calculations, the government is also implementing a Top-Up Tax Credit.

For clients and employers, this update highlights the importance of reviewing payroll withholdings and adjusting tax planning strategies for 2025 and future years.

How the rise of digital payment platforms is changing bookkeeping and tax compliance for small businesses in 2025:As we ...
11/23/2025

How the rise of digital payment platforms is changing bookkeeping and tax compliance for small businesses in 2025:

As we move through 2025, small business owners are experiencing the growing impact of digital payments. Industry reports show that digital payments now make up the vast majority of consumer transactions, with mobile wallet usage continuing to grow at double-digit rates year over year. Globally, digital wallet adoption is projected to exceed 5 billion users in 2025, and major platforms like Apple Pay and Google Pay continue to account for a rapidly increasing share of retail transactions.

From a bookkeeping standpoint, this shift creates new challenges. When payments come in through multiple apps—each with different fees, settlement times, and chargeback rules—daily and monthly reconciliation takes longer and becomes more error-prone. On the tax side, third-party payment processors are issuing more detailed year-end summaries, making consistent record-keeping throughout the year essential to avoid discrepancies.

By tightening your reconciliation routine and using software that syncs with your payment platforms, you can stay compliant and reduce year-end stress. Digital payments are here to stay—staying organized now will pay off later.

11/09/2025

Canada faces mounting pressure from escalating tariffs and supply‑chain disruptions. Slowing exports and weaker business investment are dragging growth below targets, while multiple sectors are feeling the strain. At the same time, Canada is making a clear pivot: strengthening trade and supply‑chain resilience by seeking new global partners and reducing dependency on a single market.

Ottawa is advancing its Indo‑Pacific Strategy, signalling deeper engagement with fast‑growing economies such as Japan, South Korea, and Indonesia, which are becoming increasingly important for Canada’s trade. Canada has also launched the Critical Minerals Production Alliance with allied countries to secure supply chains for key resources like graphite and rare earths.

For Canadians, this means jobs and industries tied to the old trade map must adapt, but it also opens new opportunities in global markets, green manufacturing, and advanced technology. What changes are you seeing in your sector or community as Canada reshapes its economic ties?

11/09/2025

Most Impactful Highlights of Budget 2025 for the Average Canadian Family:

1. Lower income tax for most households
Starting July 1, 2025, the lowest federal tax rate drops from 15% to 14%. For the full year, this averages to about 14.5%. Nearly 22 million Canadians will benefit — saving up to roughly $420 per person or $840 per two-income household.

2. Automatic tax-filing for eligible low-income Canadians
Beginning with the 2025 tax year (filed in 2026), Canadians with simple tax situations and low income may have their tax return automatically prepared and filed by the Canada Revenue Agency (unless they opt out). This ensures families receive all the benefits they qualify for, like the GST/HST Credit and Canada Child Benefit.

3. New support for caregivers and health-care workers
A new temporary refundable tax credit for personal support workers (PSWs) will apply to those in certain health-care roles. It’s worth 5% of eligible earnings, up to $1,100 per year, for the 2026–2030 tax years. This provides direct support to families with members working in the care sector.

4. Relief on housing and luxury taxes

The federal Underused Housing Tax will be eliminated starting in 2025, reducing costs for families owning secondary properties.

The luxury tax on aircraft and vessels (but not vehicles) will also be eliminated effective November 4, 2025.

5. “Top-Up Tax Credit” to preserve value of non-refundable credits
Because the lowest tax rate is dropping, the government will introduce a “Top-Up Tax Credit” (non-refundable) for 2025–2030. This keeps the value of major credits — like tuition, medical expenses, or home accessibility credits — consistent with the previous 15% rate.

6. Cost-of-living and carbon price relief
The budget includes the cancellation of the federal consumer fuel charge (carbon price), reducing gas prices and transportation costs for families across many provinces. This aims to ease everyday cost-of-living pressures.

08/15/2025

Business owners must strategically choose between payroll (salary) and dividends when extracting funds. Salary is a tax-deductible business expense, reducing corporate taxable income, but it attracts personal income tax and CPP contributions. Dividends, on the other hand, are paid from after-tax corporate profits—no CPP is due, and they receive favorable personal tax treatment via the dividend tax credit. However, dividends are not deductible to the corporation. The optimal mix depends on cash flow needs, RRSP contribution room, future CPP benefits, and overall tax efficiency. A tailored compensation strategy can minimize total tax liability. Consult your accountant for personalized planning.

07/08/2025

Significance of Staying Up-to-date

Accountants must stay current with evolving Canadian tax laws to provide accurate and strategic advice. For example, updates to the Canada Emergency Wage Subsidy (CEWS) during the COVID-19 pandemic required accountants to quickly adapt to help clients access relief. Similarly, the 2023 changes to the alternative minimum tax (AMT) significantly impacted high-income clients and required proactive planning. Without up-to-date knowledge, accountants risk offering outdated advice, leading to penalties or missed opportunities. Staying informed ensures optimal client solutions and long-term trust.

Address

250/997 Seymour Street
Vancouver, BC
V6B3M1

Opening Hours

Monday 9am - 5pm
Tuesday 9am - 5pm
Wednesday 9am - 5pm
Thursday 9am - 5pm
Friday 9am - 5pm

Telephone

+12366884470

Website

Alerts

Be the first to know and let us send you an email when J Bakshi, CPA Inc. posts news and promotions. Your email address will not be used for any other purpose, and you can unsubscribe at any time.

Contact The Business

Send a message to J Bakshi, CPA Inc.:

Shortcuts

Share

Category