8 Canadian tax & accounting terms starting with N
Plain-language definitions, each with the CRA rule it comes from and the filings it affects.
Net Book Value
Net book value is an asset's original cost minus its accumulated depreciation, the amount at which it is carried on the balance sheet.
Net Income
Net income is a business's profit after all expenses, the bottom line remaining once revenue is reduced by cost of sales, overhead, interest and tax.
Net Pay
Net pay is the amount an employee actually receives after income tax, CPP, EI and any other deductions are subtracted from their gross pay, their take-home pay.
Non-Capital Loss
A non-capital loss is a business or property loss that can be carried back three years or forward twenty to offset income in other years and recover or reduce tax.
Non-Eligible Dividend
A non-eligible dividend is a dividend paid from corporate income taxed at the small business rate, carrying a smaller gross-up and dividend tax credit than an eligible dividend.
Notice of Assessment (NOA)
A Notice of Assessment is the CRA's official summary of your filed tax return, confirming the tax, refund or balance owing and any changes the CRA made.
Notice of Objection
A Notice of Objection is the formal way to dispute a CRA assessment or reassessment, filed within 90 days to have the matter reviewed by the independent Appeals Division.
Notice to Reader (NTR)
A Notice to Reader, now called a compilation engagement, is financial statements assembled by an accountant from information you provide, with no assurance offered.
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