16 May
0

Did You Receive a Notice of Reassessment from CRA? Here’s What to Do

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Filing your tax return doesn’t always mean the process is over. Sometimes, the Canada Revenue Agency (CRA) reviews your return and issues a Notice of Reassessment — a formal document indicating that they’ve made changes to what you originally filed.

While receiving such a notice can be unsettling, it doesn’t necessarily mean something is wrong. However, you should never ignore it.

Why Did I Get a Reassessment?

The CRA may reassess your return for several reasons, including:

  • Omitted income slips, such as an overlooked T4 or T5

  • Deductions or credits that were disallowed due to ineligibility or incomplete information

  • Corrections from third parties, such as banks or employers

  • Random reviews focused on self-employment income, rental properties, or foreign assets

In some cases, reassessments are triggered by internal CRA algorithms that identify potential high-risk filings.

What If the Reassessment Says I Owe More?

If your reassessment results in additional tax owed, interest starts accruing immediately — even if you haven’t received a payment reminder yet. Prompt action is key to avoiding further charges.

Can I Challenge the CRA’s Decision?

Absolutely. If you believe the reassessment is incorrect, you have the right to file a formal objection within 90 days of the notice date.

At Serving People Group, we can support you through every step:

  • 📋 Review and explain your reassessment in simple terms

  • 📞 Communicate directly with the CRA on your behalf

  • 📝 Prepare and file a detailed objection, with the proper documentation

Don’t Face the CRA Alone — Let SPG Help

Whether you’re confused by the notice, disagree with the new amount, or just want clarity before taking action, our experienced tax advisors are here to assist.

📍 We’re available all year round, not just during tax season.
📞 Call: 866-514-6979
📧 Email: spg@servingpeoplegroup.com
🌐 Visit: www.spgtax.ca

Received a CRA notice? Don’t panic — contact Serving People Group today for expert guidance and peace of mind.

08 May
0

Missed the tax deadline? here’s some good news!

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April 30, 2025 is the CRA’s official deadline to submit your 2024 personal tax return (T1). If you haven’t filed or paid yet, this is your last chance to act without facing penalties or interest charges.

Do You Need to File Today?

The answer is likely yes if in 2024 you:

  • Were employed — whether full-time, part-time, or casually

  • Collected income from rental properties

  • Sold investments, property, or other capital assets

  • Earned foreign income

  • Are planning to claim deductions (for tuition, moving, medical, childcare, donations, etc.)

If any of the above applies to you, your return must be submitted today.

Don’t Forget: Payment Is Also Due

Even if you’re self-employed and have a filing extension until June 15, your taxes owed are still due by April 30.
Missing the payment deadline triggers daily interest, starting tomorrow, May 1 — and it compounds.

Have International Assets or Property?

  • Own foreign property worth over $100,000 CAD?
    You’re required to file Form T1135 by today.

  • Hold residential property in Canada through a corporation, trust, or as a non-resident?
    Your Underused Housing Tax (UHT) return is also due. Late filing comes with steep penalties: $1,000 for individuals, $10,000 for corporations.

Capital Gains or T3 Income?

If you’ve received a T3 slip or are reporting capital gains on Schedule 3, you may qualify for filing relief until June 2, 2025 — but only under certain conditions.
If you’re unsure, the safest move is to file today and avoid the risk.

Accepted Payment Methods

Need to pay your taxes today? You can do so through:

  • CRA’s My Account

  • Online banking

  • Mailed cheque (postmarked April 30 at the latest)

  • Credit card via third-party platforms like Plastiq

  • Pre-authorized debit

We’re Here – Even at the Last Minute

At Serving People Group, we understand that tax deadlines can sneak up on you — and we’re ready to help, even on the final day. Whether you need guidance on capital gains, foreign assets, or late-filing options, our team is here to support you.

📍 We’re open year-round, not just during tax season. For today — and for whatever tax needs arise tomorrow — we’ve got you covered.

📞 Call: 866-514-6979
📧 Email: spg@servingpeoplegroup.com
🌐 Visit: www.spgtax.ca

Don’t miss your deadline. Let us help you file today — and stay one step ahead.

 
 
 
22 Apr
0

T4 vs T4A: Understanding the Difference and Choosing What’s Right for You

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As more Canadians explore freelancing, gig work, and side hustles, a common question arises during tax season: Should I receive a T4 or a T4A? Understanding the difference can help you make informed decisions about your employment status, financial planning, and tax obligations.

This article breaks down the two forms and outlines what each means for your work, your taxes, and your future.

What Is a T4 Slip?

A T4 slip is issued to employees. If you’re on a T4, it means your employer has deducted income tax, Canada Pension Plan (CPP), and Employment Insurance (EI) contributions from your pay before it reaches you.

When is a T4 Best?

A T4 may be the right fit if you:

  • Prefer job stability and predictable income

  • Want access to employee benefits (e.g., paid vacation, health insurance)

  • Are eligible for EI coverage (for maternity leave, illness, or job loss)

  • Plan to apply for loans or mortgages and need consistent income records

What Is a T4A Slip?

A T4A slip is typically issued to independent contractors, freelancers, and gig workers. Unlike a T4, no taxes are deducted at source. You receive the full amount and are responsible for handling:

  • Your own tax payments

  • Both the employer and employee portions of CPP contributions

When is a T4A Best?

A T4A might suit you if you:

  • Want flexible working hours and control over your earnings

  • Feel confident managing your taxes independently (or have professional help)

  • Intend to deduct business expenses, such as home office costs, tools, internet, marketing, or mileage

  • Are comfortable planning for your own insurance and retirement

Real-World Examples

Emily – Graphic Designer

  • On a T4: Emily works full-time for a company, uses their equipment, and is paid biweekly with taxes deducted.

  • On a T4A: She freelances, buys her own software and tools, and sets her own schedule. She deducts business expenses but manages her own taxes.

Tom – Electrician

  • As a self-employed tradesperson, Tom finds his own clients and invoices them directly. No taxes are deducted from his payments, but he deducts tools, fuel, and other work-related expenses to lower his taxable income.

Choosing Between T4 and T4A

PreferenceChoose T4Choose  T4A
Job stability✅ 
Employee benefits✅ 
Flexibility & independence ✅
Deduct business expenses ✅
Easy tax management✅ 
Willing to manage taxes ✅

Key Reminder

If you’re on a T4A, be sure to set aside a portion of your income for taxes and CPP. Many new freelancers are surprised by a large tax bill when they file—planning ahead is essential!

Need Help Filing?

Whether you’re on a T4 or T4A, the expert team at SPG Tax can help you:

  • Understand your tax obligations

  • Maximize your eligible deductions

  • File accurately and on time

  • Stay fully CRA-compliant

Contact Us

Let SPG Tax help you navigate tax season with confidence—whichever form you file with. 

22 Apr
0

Avoid CRA Penalties: What You Must Do Before April 30, 2025

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As the 2025 tax season nears its final stretch, it’s crucial to stay on top of your obligations to avoid unnecessary financial penalties and interest. The Canada Revenue Agency (CRA) has set April 30, 2025 as the final deadline for filing and payment for individual tax returns. Missing this deadline could cost you more than expected

Who Needs to Act?

If you fall into one of the following categories, you must take immediate steps:

  • You have not yet filed your 2024 tax return.
  • You owe taxes and haven’t made a payment yet.

Failing to act could result in accumulating penalties and interest that add up quickly.

Penalties for Late Filing:

If you do not file your return by April 30, the CRA will impose a late-filing penalty. This includes:

  • 5% of the balance you owe immediately.
  • An additional 1% for each full month the return is late, up to a maximum of 12 months.
  • If you have a history of late filing, the penalties could be doubled.

Interest on Unpaid Balances:

In addition to penalties, the CRA begins charging daily compound interest starting May 1, 2025 on any unpaid amount. The effective annual rate is approximately 10%, which can exceed typical credit card interest rates.

Steps to Avoid Penalties:

  1. To ensure you’re not hit with late fees or interest, take the following actions:
  2.  
  3. File your 2024 tax return by April 30, 2025.

Pay any taxes owed in full, if possible.

Reach out for professional support if you’re unsure about your situation or need help completing your return.

We’re Here to Help

At Serving People Group, we provide personalized tax filing services to help you meet your obligations with confidence. Our expert team can:

  • File your tax return accurately and on time
  • Help you understand any amounts owing
  • Offer guidance on payment options and tax planning

Contact Us

📞 866-514-6979

📧 spg@servingpeoplegroup.com

🌐 www.spgtax.ca

Don’t wait until the last minute. Act now to avoid costly penalties and keep your finances on track.

 
11 Apr
0

Maximize Your Deductions: Claiming Motor Vehicle Expenses with the CRA

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As a Canadian taxpayer, you may be eligible to claim motor vehicle expenses if you use your vehicle for business purposes. The Canada Revenue Agency (CRA) requires detailed records to support your claims, so understanding the rules can help you maximize your deductions.

🚗 What Can You Claim? Eligible deductions include fuel, maintenance, insurance, licensing fees, lease payments, and depreciation (capital cost allowance). However, personal-use mileage is not deductible, and you must keep a mileage log for business-related activities.

📋 What Records Are Required? To satisfy CRA requirements, you must keep:

  • A detailed mileage log, including dates, destinations, and purpose of each trip
  • Receipts for all eligible expenses
  • Year-end odometer readings

✅ How SPG Tax Can Help Navigating motor vehicle expense deductions can be complex. At SPG Tax, we ensure accurate filings and help you take advantage of every eligible deduction.

👉 Get Professional Tax Support Today! Don’t miss out on valuable deductions. Contact us now to learn how SPG Tax can help you file with confidence and save more!

11 Apr
0

Canada Disability Benefit: Eligibility, Payments, and What You Need to Know

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The Canada Disability Benefit (CDB) is a forthcoming federal initiative designed to provide financial assistance to low-income Canadians with disabilities, aiming to reduce poverty and enhance financial security among eligible individuals.

Payment Schedule

The inaugural payment period for the CDB spans from July 2025 to June 2026. The benefit amount you receive during this period will be determined based on your income reported in your 2024 tax return. To ensure timely receipt of the CDB, it is advisable to apply as soon as the application becomes available in June 2025.

Benefit Amount

The maximum CDB amount is set at $2,400 annually, equating to $200 per month. However, the actual amount you receive depends on several factors, primarily your income level. If your calculated monthly benefit is $20 or less, you will receive a single lump-sum payment for the entire period on the date the first monthly benefit would have been disbursed, rather than separate monthly payments.

Income Considerations

Your benefit amount is influenced by your income from the previous tax year. For instance, payments commencing in July 2025 will be based on your 2024 income. Key income factors affecting the CDB include:

  • Income Thresholds: The maximum income you can earn before your benefit is reduced. These thresholds vary based on family structure.

  • Working Income Exemption: A portion of your working income that is excluded when calculating your benefit amount. This exemption allows individuals to earn up to a certain amount without affecting their CDB.

  • Reduction Rates: The rate at which your benefit decreases if your income exceeds the established thresholds.

Retroactive Payments

In future years, eligible individuals may receive up to 24 months of retroactive payments, regardless of their eligibility status in the month they apply. 

Tax Implications

CDB payments are not considered taxable income. This means the benefit will not reduce the amount you receive from other federal programs. However, depending on your province or territory, the CDB may affect the amount received from provincial or territorial benefits. 

Preparation Steps

To prepare for the CDB:

  1. File Your Taxes: Ensure you have filed your income tax return for the year preceding the payment period. For the July 2025 to June 2026 period, your 2024 tax return must be filed.

  2. Apply for the Disability Tax Credit (DTC): Approval for the DTC is a prerequisite for receiving the CDB

28 Mar
0

Understanding Moving Expense Deductions in Canada

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Understanding Moving Expense Deductions in Canada

If you’ve moved for work, business, or to attend full-time post-secondary education, you may be eligible to claim moving expenses on your Canadian tax return. The CRA allows deductions to help reduce your taxable income, provided you meet specific criteria.

🚚 Who Can Claim Moving Expenses? You can claim moving expenses if:

  • You moved at least 40 km closer to your new work or school location
  • The move is related to starting a new job, business, or attending full-time studies

💡 Eligible Deductions Include:

  • Transportation and storage costs (e.g., movers, fuel, parking)
  • Temporary living expenses for up to 15 days
  • Cost of selling your old home and purchasing a new one
  • Travel expenses (e.g., meals, accommodations)

✅ How Serving People Group Can Help Navigating moving expense claims can be complex. Let Serving People Group guide you through the process to ensure you maximize your deductions and stay compliant.

👉 Get Expert Tax Assistance Today! Don’t miss out on valuable deductions. Contact Serving People Group now to make your move stress-free and tax-efficient!

28 Mar
0

Understanding the New Tax Rules for Short-Term Rental Income

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Understanding the New Tax Rules for Short-Term Rental Income

The Canada Revenue Agency (CRA) has recently announced updates to the rules governing eligible deductions for short-term rental income. These changes, effective for the 2025 tax year, impact individuals who earn income from platforms like Airbnb or VRBO, clarifying what expenses can be claimed to reduce taxable income.

📝 What Has Changed? Under the new regulations, only expenses directly related to earning rental income are deductible. Homeowners can no longer claim full property expenses unless the property is used exclusively for rental purposes. Mixed-use properties must now allocate expenses based on the percentage of time the property is rented.

✅ Key Deductions Still Available

  • Mortgage interest and property taxes (pro-rated)
  • Insurance and utilities (pro-rated)
  • Advertising and professional fees
  • Repairs and maintenance specific to rental activities

🚀 How SPG Tax Can Help Navigating these changes can be complex, but SPG Tax is here to ensure you get the maximum deductions allowed. Our tax experts can help you understand your eligibility and file your taxes accurately.

👉 Take Advantage of Our Expertise! Contact us today to ensure compliance and optimize your tax returns. Get in touch now and let us handle your taxes with ease and confidence!

26 Mar
0

Canada Child Benefit 2025: How Much You Can Expect and Key Updates

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Canada Child Benefit 2025: How Much You Can Expect and Key Updates

The Canada Child Benefit (CCB) is a tax-free monthly financial support provided by the Canadian government to families with children under 18. It is calculated based on the previous year’s net family income, the number of children, and their ages. As of July 2024, the CCB has been increased by 4.7% to keep up with the cost of living. 

Maximum Monthly CCB Amounts for July 2024 – June 2025:
  • Children under 6 years old: $648.91 per child.
  • Children aged 6 to 17: $547.50 per child. 

Families with a net income below $36,502 receive the maximum benefit. For higher incomes, the benefit gradually decreases. If the annual total CCB amount is less than $240, the family receives a lump sum payment in July instead of monthly payments. 

For more details on the CCB and to check eligibility, it is advisable to visit the official Canadian government website or contact the Canada Revenue Agency.

26 Mar
0

Your Reliable Income Tax preparer

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Looking for a Reliable Income Tax Preparer Near You?

Filing your taxes doesn’t have to be complicated or costly! At Serving People Group (SPG), we offer expert tax preparation services with a free taxes option for our members. Whether you’re an individual, a business owner, or a landlord, we have tailored solutions to help you maximize your refund while staying compliant with tax regulations.

 

Our Tax Services Include:

  • Free Taxes (for members)

  • Business Tax Returns

  • Rental Income Tax Returns

  • Final Tax Returns

  • HST/GST Returns

How to Get Your Free Income Tax Return

  1. Sign Up for SPG Membership – Unlock exclusive benefits and services.

  2. Book a Consultation – Speak with a professional tax preparer near you.

  3. Submit Your Documents – We handle the rest while you sit back and relax.

  4. Maximize Your Refund – Our experts ensure you get the most out of your tax return.