8 Canadian tax & accounting terms starting with E
Plain-language definitions, each with the CRA rule it comes from and the filings it affects.
EBITDA
EBITDA is earnings before interest, taxes, depreciation and amortization, a measure of a business's core operating profitability.
Eligible Dividend
An eligible dividend is a dividend paid from corporate income that was taxed at the general rate, carrying a higher gross-up and a larger dividend tax credit for the shareholder.
Employer Health Tax (EHT)
The Employer Health Tax is a provincial payroll tax in provinces like Ontario and BC, levied on an employer's total payroll above an exemption threshold.
Employment Insurance (EI)
Employment Insurance is a federal program funded by employee and employer premiums that provides temporary income to eligible workers who lose their jobs or take certain leaves.
Equity
Equity is the owners' residual stake in a business, what would be left for the owners after all assets are used to pay off all liabilities.
Estate Freeze
An estate freeze is a tax-planning strategy that locks in the current value of your business or assets for you, passing future growth to the next generation to limit future tax.
Exempt Supply
An exempt supply is a good or service on which no GST/HST is charged and for which the supplier cannot claim input tax credits, unlike a zero-rated supply.
Expense
An expense is a cost incurred to earn business income, deducted against revenue to arrive at profit, and generally deductible for tax if reasonable.
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