Glossary: R

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Reassessment

A reassessment is a change the CRA makes to a tax return it has already assessed, typically after a review or audit, adj…

Recapture

Recapture is previously claimed capital cost allowance added back to income when an asset is sold for more than its rema…

Reconciliation

Reconciliation is the process of matching your accounting records against an external source, such as a bank statement, …

Record of Employment (ROE)

A Record of Employment is the form an employer must issue when an employee stops working, reporting insurable earnings a…

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 …

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 attr…

Related Party

Related parties are persons or entities connected by blood, marriage, adoption or control, whose transactions the CRA sc…

Remittance

A remittance is a payment a business sends to the CRA for amounts it has collected or withheld, such as payroll source d…

Retained Earnings

Retained earnings are the accumulated profits a corporation has kept rather than paid out to shareholders, forming part …

Return on Investment (ROI)

Return on investment measures the gain or loss from an investment relative to its cost, expressed as a percentage, to co…

Revenue

Revenue is the total income a business earns from its normal activities, selling goods or services, before any expenses …

RRSP

A Registered Retirement Savings Plan lets Canadians deduct contributions from income and defer tax on investment growth …

Runway

Runway is the length of time a business can keep operating before it runs out of cash, calculated as current cash divide…

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