Tax & Accounting for Gaming & Esports Companies

Income tax starts once taxable income passes the basic personal amount, and a separate provincial or territorial amount applies on top, so the break-even point shifts every year with indexation and differs by where you live. Look up the current amounts on the CRA site or in the year's return package. Credits for tuition, disability, pension income or dependants push the point higher. Filing can still be worthwhile or required with no tax owing, for benefits and credits.

A write-off is simply a deductible expense. You subtract it from the income it helped earn, so the saving equals the expense multiplied by your marginal tax rate, not the full amount spent. To qualify, the cost must be incurred to earn business or employment income, be reasonable in amount, and be backed by a receipt. Purely personal costs never qualify, and mixed-use items such as a vehicle or a home office are split by business-use proportion.

Yes. The CRA does telephone individuals and businesses about balances owing, missing returns, audits and benefit reviews, and an agent may leave a voicemail asking you to call back. It will not threaten arrest or deportation, demand payment by gift card, e-transfer or crypto, or pressure you to stay on the line. Check My Account for the same message before acting, and call the CRA back on a number from canada.ca.

Federal income tax, GST/HST and excise duties flow into general revenue, which funds transfers to the provinces for health care and social programmes, benefits such as the Canada child benefit and old age security, defence, federal departments and interest on the public debt. Provincial income and sales taxes fund schools, hospitals and municipal transfers. Canada Pension Plan and Employment Insurance premiums sit in separate accounts and are not part of general revenue. The federal budget publishes the yearly split.

Total income is measured before tax. On a T1 it is the sum of your income sources for the year, such as employment income from your T4, self-employment, investment, and pension amounts, added up before deductions and before any tax withheld. Tax withheld at source is a payment toward your final bill, not a reduction in income. Deductions take total income down to net income, and further deductions give taxable income, which the rates apply to.

The owner. Municipalities bill the registered owner, so the landlord is responsible and any arrears become a charge against the property rather than the tenant. In practice residential rent is set to cover it, so tenants fund it indirectly. Commercial leases work differently: a net lease commonly requires the tenant to reimburse the property tax directly. For a landlord, property tax on a rental property is a deductible expense against the rental income it relates to.