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Yes. We assist self-employed professionals, drivers and other small business owners with tax preparation and bookkeeping. Tell us about your activities so we can identify the services you need.

We can review the letter with you, discuss the requested information and help prepare supporting records or a response. Mention any response deadline when you contact us.

Begin with a brief description of your needs and the tax year or business period involved. We’ll let you know which documents are needed after discussing your situation.

Yes. For a self-employed business, eligible actual vehicle expenses are generally allocated using business kilometres divided by total kilometres. Keep receipts and a log showing each business trip’s date, destination, purpose and distance. The employee allowance rates below are not a flat-rate deduction for self-employed individuals.

If you use your personal vehicle in your duties as an employee of your corporation, arrangements may include:

• A reasonable per-kilometre allowance: in 2026, the prescribed provincial rates are $0.73 for the first 5,000 business kilometres and $0.67 thereafter. Territorial rates are $0.77 and $0.71. The allowance may be non-taxable if all CRA conditions are met.
• Reimbursement of documented actual business expenses, supported by receipts and mileage records. Avoid claiming the same expenses twice.
• Leasing or transferring the vehicle to the corporation is a separate arrangement requiring review of ownership, deduction limits and possible taxable benefits for personal use.

CRA: calculating business vehicle expenses

Department of Finance: 2026 vehicle rates

Yes, it can, provided the corporation meets all CCPC requirements. A work permit alone neither establishes nor prevents eligibility. The owner’s Canadian tax residency, rather than citizenship or permanent resident status alone, is relevant; residency depends on the facts, residential ties and applicable treaty rules.

The corporation must be private, resident in Canada and meet the Canadian incorporation or residency requirement. It must satisfy all restrictions on direct, indirect and combined control by non-residents, public corporations and specified listed corporations, and its own shares must not be listed on a designated stock exchange.

Canadian residents holding more than 50% of voting shares does not, by itself, prove CCPC status. Review the share structure, shareholder agreements and actual control before determining eligibility.

CRA: CCPC requirements

CRA: tax residency when working temporarily in Canada

Some receipts are generally non-taxable, while others qualify for an exemption only when specific conditions are met. Tax-free does not always mean that nothing must be reported on your return. Common examples include:

• Government benefits: Canada Child Benefit (CCB), federal sales-tax credits or benefits and related provincial benefits such as the Ontario Trillium Benefit are generally non-taxable. CPP, OAS and EI are not part of this general exemption.
• Workers’ compensation and social assistance: generally non-taxable, but reportable under the applicable rules, usually using the T5007 slip. The related deduction on line 25000 prevents these amounts from being included in taxable income, although they can affect income-tested benefits.
• Section 87 of the Indian Act: qualifying income of a person registered or entitled to be registered under the Act may be exempt when sufficiently connected to a reserve. Eligibility depends on the connecting factors; this is not a blanket exemption for all Indigenous income.
• Scholarships, bursaries and study grants: awards supporting enrolment as a full-time qualifying student may be fully exempt. Part-time studies and other awards have different limits; not every grant is tax-free.
• Insurance: most life-insurance death benefits are non-taxable. Disability-insurance benefits are generally tax-free if you personally paid all the premiums; employer contributions can change the tax treatment.
• Gifts, inheritances and lottery winnings: most are non-taxable to the recipient. Prizes linked to employment, business, property or achievement can be taxable. Income subsequently earned by investing a gift, inheritance or prize is generally taxable outside a tax-exempt account.
• TFSA: investment income and withdrawals are generally tax-free. Special taxes can apply, including for excess contributions or prohibited investments.
• Principal residence: a qualifying sale may be fully or partly exempt, depending on the facts and years designated. You must still report the sale on Schedule 3 and complete the applicable principal-residence designation, generally Form T2091.

Check the rules for the specific payment and tax year before deciding whether to report it or claim an exemption.

CRA: non-taxable amounts

CRA: reporting T5007 benefits

CRA: scholarship exemptions

CRA: section 87 exemption

CRA: principal residence reporting

2026 update · Reviewed October 5, 2026

Yes, the eligible business-use portion can be deductible. For new passenger-vehicle leases entered into on or after January 1, 2026, the monthly deduction ceiling remains $1,100 before tax. The $1,050 figure in the earlier material is outdated; the ceiling was already $1,100 for new 2025 leases.

This ceiling is not an automatic deduction. The amount depends on actual eligible lease charges, the lease date, business-use percentage and the passenger-vehicle calculation, which may further restrict expensive vehicles. Earlier leases may use the ceiling applicable when the agreement began. Keep the lease agreement, invoices and business mileage records.

Fuel, insurance and maintenance paid separately are generally recorded as separate vehicle expenses and allocated to business use. If insurance or maintenance is included in the lease charges, CRA instructs you to include it in the leasing calculation. Account for sales taxes and any recoverable GST/HST without double-counting.

Department of Finance: 2026 automobile limits

CRA: calculating eligible leasing costs

2026 update · Reviewed October 5, 2026

Different rules apply to active business income and investment income. For an eligible CCPC claiming both federal and Ontario small business deductions, the combined rate on qualifying active business income is 12.2% before July 1, 2026 and 11.2% from that date (9% federal plus 2.2% Ontario). A tax year spanning the change uses a day-weighted rate. Eligibility and the available business limit must be checked.

For an Ontario CCPC, interest and other investment income subject to the ordinary refundable Part I regime generally face an initial combined tax rate of approximately 50.17%: 38⅔% federal plus 11.5% Ontario, before applicable credits and adjustments. This is not one universal rate for every investment receipt; capital gains apply their own taxable-inclusion rules.

Canadian portfolio dividends from non-connected corporations generally face refundable Part IV tax of 38⅓%, rather than the same 50.17% rate. Connected-corporation dividends have different conditions.

Part of the investment tax can be recovered through RDTOH when the corporation pays qualifying taxable dividends, subject to the applicable refund rules. The shareholder may then owe personal dividend tax, so the initial corporate tax is not necessarily a permanent loss of half the income.

Passive income can also reduce access to the federal small business deduction: the associated group’s adjusted aggregate investment income above $50,000 reduces the federal business limit, with the standard $500,000 limit fully eliminated at $150,000. The relevant prior-year income and Ontario’s separate rules must be reviewed.

Ontario: corporate income tax rates

CRA: federal and provincial corporation rates

CRA: refundable investment tax and RDTOH

CRA: Part IV tax on dividends

CRA: passive income and the federal business limit