13 Canadian tax & accounting terms starting with R
Plain-language definitions, each with the CRA rule it comes from and the filings it affects.
Reassessment
A reassessment is a change the CRA makes to a tax return it has already assessed, typically after a review or audit, adjusting your tax within the reassessment period.
Recapture
Recapture is previously claimed capital cost allowance added back to income when an asset is sold for more than its remaining tax value, reversing excess depreciation.
Reconciliation
Reconciliation is the process of matching your accounting records against an external source, such as a bank statement, to confirm they agree and catch errors.
Record of Employment (ROE)
A Record of Employment is the form an employer must issue when an employee stops working, reporting insurable earnings and hours so the worker can claim EI.
Refundable Dividend Tax on Hand (RDTOH)
RDTOH is a notional account that tracks refundable tax a corporation prepays on its investment income, refunded when it pays taxable dividends to shareholders.
Registered Education Savings Plan (RESP)
An RESP is a tax-sheltered savings plan for a child's post-secondary education, where investments grow tax-free and attract government grants.
Related Party
Related parties are persons or entities connected by blood, marriage, adoption or control, whose transactions the CRA scrutinises and often deems to occur at fair market value.
Remittance
A remittance is a payment a business sends to the CRA for amounts it has collected or withheld, such as payroll source deductions or net GST/HST.
Retained Earnings
Retained earnings are the accumulated profits a corporation has kept rather than paid out to shareholders, forming part of shareholders' equity.
Return on Investment (ROI)
Return on investment measures the gain or loss from an investment relative to its cost, expressed as a percentage, to compare the efficiency of different uses of money.
Revenue
Revenue is the total income a business earns from its normal activities, selling goods or services, before any expenses are deducted, also called the top line.
RRSP
A Registered Retirement Savings Plan lets Canadians deduct contributions from income and defer tax on investment growth until the funds are withdrawn in retirement.
Runway
Runway is the length of time a business can keep operating before it runs out of cash, calculated as current cash divided by its monthly net burn rate.
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