We started Barakat Financials after recognizing a critical issue in the accounting industry: a lack of proper communication between accountants and their clients. Too often, individuals and businesses found themselves struggling with unresponsive accountants who failed to provide clear guidance. Even worse, many professionals in the field were not fully aware of the ever-evolving Canadian tax regulations, leaving clients at risk of costly mistakes, penalties, and financial inefficiencies.
Understanding these challenges, we built Barakat Financials as a firm that puts integrity, expertise, and client service at the forefront. We are dedicated to providing clear, proactive, and reliable financial solutions that empower businesses and individuals to make informed decisions with confidence.
At Barakat Financials, we believe that understanding your tax obligations, potential deductions, pension plans, and investment opportunities is key to achieving financial security. Whether you’re a salaried professional, self-employed, a first-time homebuyer, a landlord, an investor, or a retiree, our team of experts is here to guide you through Quebec’s complex tax system.
At Barakat Financials, we understand that each business is unique. Whether you’re just starting out or have been running your small business or self-employed venture for years, we provide tailored accounting and tax solutions to ensure you stay organized, compliant, and prepared for long-term success.
As a student, you may qualify for valuable tax credits, deductions, and financial benefits that can reduce your tax burden and help you save money for the future. At Barakat Financials, we specialize in student tax returns and financial planning to ensure you receive every tax advantage you’re entitled to.
Are you a non-resident who owns a rental property in Canada or are you looking to invest in Canadian real estate from outside of the country? If so, it’s important to understand your tax obligations and the necessary steps to stay compliant with the Canadian Revenue Agency (CRA) and Quebec’s tax regulations.
We offer industry-leading insurance and investment policies tailored to your unique needs. With comprehensive coverage and strategic investment options, we ensure financial security, peace of mind, and long-term growth.
Our certified agents bring expertise to secure your financial future with top insurance and investment advice.
At Barakat Financials, we provide accurate, timely, and efficient accounting and bookkeeping solutions tailored to your business needs.
Gain clear financial insights with our expertly crafted Profit & Loss statements, balance sheets, and cash flow statements.
Barakat Financials goes beyond numbers—we offer strategic financial analysis and forecasting to help your business plan for long-term success.
Navigating GST/QST compliance can be complex, but we make it hassle-free. Our team ensures that your tax filings are done accurately and on time, preventing penalties and maximizing tax efficiencies.
Optimize your tax liabilities with our personalized tax solutions for individuals and businesses. Whether you need help with corporate tax planning, personal tax filing, or deductions.
Turn your business vision into reality with our expert financial planning services. We assess market conditions, evaluate risks, and develop feasibility studies to help you make informed investment and expansion decisions.
Knowing your business’s true worth is crucial for investments, mergers, and acquisitions. Our business valuation experts conduct thorough financial assessments using industry-standard methodologies to determine your company’s fair market value.
Protect your business from financial risks and fraud with our internal audit and internal control advisory services. We conduct in-depth audits to identify inefficiencies and recommend solutions for improved financial governance.
Simplify payroll processing with our end-to-end payroll management services. From salary calculations to tax deductions and direct deposits, we ensure seamless and compliant payroll operations, so you can focus on growing your business.
Unlock new business opportunities with our financial and management consulting services.
Ensure regulatory compliance and effective financial leadership with our corporate governance and Virtual CFO services.
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Personal income taxes in Canada are calculated based on the previous calendar year. The deadline for filing personal tax returns is April 30, of each year. Self-employed individuals and their spouses or common-law partners have until June 16, of each year, to file their returns. It’s important to note that any taxes owed are still due by April 30, of the year. Filing late may result in interest charges and penalties on any outstanding taxes.
If you’ve missed filing your taxes for multiple years, it’s crucial to address this promptly to minimize potential penalties and interest. The Canada Revenue Agency (CRA) offers a Voluntary Disclosures Program (VDP) that allows taxpayers to come forward and correct previous tax filings or omissions. Depending on your situation, there may be payment plans available, and you might have unused credits that can reduce your tax liability. We recommend contacting us to discuss your specific circumstances and explore the best course of action.
The Tax-Free First Home Savings Account (FHSA) is a new program designed to help first-time homebuyers save for their first home. You can contribute up to $8,000 per year, with a lifetime limit of $40,000. Contributions are tax-deductible, and withdrawals for the purpose of purchasing a first home are tax-free. Additionally, the Home Buyers’ Plan (HBP) allows you to withdraw up to $35,000 from your Registered Retirement Savings Plan (RRSP) to buy or build a qualifying home, with the requirement to repay the withdrawn amount over a 15-year period. We can assist you in navigating these programs and planning financially for this significant milestone.
The Multigenerational Home Renovation Tax Credit is a refundable credit that applies to eligible expenses incurred for renovations that create a secondary dwelling unit to allow an eligible person (a senior or an adult with a disability) to live with a qualifying relation. Qualifying expenses include building materials, fixtures, equipment rentals, permits, and professional services. However, expenses such as routine maintenance, household appliances, and financing costs do not qualify. It’s important to ensure that any professional services are provided by individuals registered for GST/HST purposes and that they are not related to the taxpayer unless certain conditions are met.
Introduced for the 2023 tax year, the Multigenerational Home Renovation Tax Credit is a refundable credit that allows families to claim 15% of eligible renovation expenses, up to a maximum of $50,000, resulting in a credit of up to $7,500. The renovations must be intended to create a secondary dwelling unit to accommodate a senior parent or a disabled adult child. Eligible expenses include costs for labor, building materials, fixtures, and equipment rentals. This credit aims to support families in providing a safe and accessible living space for their loved ones.
Deciding when to retire depends on various factors, including your financial situation, health, and personal goals. In Canada, you can start receiving the Canada Pension Plan (CPP) benefits as early as age 60 or as late as age 70. Taking CPP early will result in a reduced monthly benefit, while delaying it increases the benefit. Additionally, eligibility for Old Age Security (OAS) benefits begins at age 65, with options to defer up to age 70 for increased payments. We recommend consulting with our financial advisors to assess your specific circumstances and develop a retirement plan that aligns with your objectives.
Investing is a key component of building wealth and achieving financial goals. Beyond the commonly known Registered Retirement Savings Plans (RRSPs) and Tax-Free Savings Accounts (TFSAs), there are other investment vehicles such as Registered Education Savings Plans (RESPs), Real Estate Investment Trusts (REITs), and various types of mutual funds and exchange-traded funds (ETFs). Each investment option has its own set of benefits, risks, and tax implications. Our experts can provide personalized advice to help you develop an investment strategy tailored to your financial situation and goals, regardless of the size of your budget.
In Québec, the government offers a refundable tax credit for childcare expenses to assist families with the cost of childcare. Eligible expenses include fees paid to daycare centers, nursery schools, and caregivers providing childcare services. The credit rate varies based on family income, with lower-income families receiving a higher percentage of their expenses back, up to a maximum of 75%. It’s important to note that both public and private childcare services can qualify for this credit, potentially making private daycare as affordable as public options, depending on your income level. Our tax professionals can help you determine your eligibility and maximize the benefits of this credit.
The tuition tax credit is a non-refundable credit, meaning it can reduce your tax payable to zero but cannot create a refund. If your tuition credits exceed your tax payable for the year, the unused portion can be carried forward to future years or transferred to a spouse, parent, or grandparent, up to certain limits. For example, if you paid $5,000 in tuition for the 2024 tax year, you could be eligible for a federal credit of $750 ($5,000 x 15%) and a Québec provincial credit of $400 ($5,000 x 8%), totaling $1,150.
Suppose you owe $1,500 in taxes for the year. A tax credit of $1,150 would be applied directly to reduce this amount. If your total tax credit exceeds what you owe, the unused portion can be carried forward to future tax years.
As an international student paying tuition fees of up to $100,000, you may qualify for substantial tuition tax credits. These credits can be accumulated and carried forward, allowing you to apply them in future years when you begin working in Canada.
As an international student in Canada, your tax filing obligations depend on your residency status for tax purposes, which is determined by the residential ties you establish in Canada. Most international students are considered residents or deemed residents for tax purposes. If you earned income from employment, scholarships, bursaries, or interest, you are required to file a Canadian income tax return. Even if you had no income, filing a tax return is beneficial, as you may be eligible for certain refunds or credits, such as the Goods and Services Tax (GST) credit and the Québec Solidarity Tax Credit. Filing also ensures that your eligibility for these benefits is maintained.
To file your taxes in Canada, gather the following documents:
Ensure you keep all relevant documents and receipts organized to accurately complete your tax return.
Yes, even if you have no employment income, it’s advisable to file a tax return. By filing, you may become eligible for benefits and credits such as the GST/HST credit and, for Québec residents, the Solidarity Tax Credit. These credits can provide financial assistance and are only accessible if you file a tax return.
Yes, you can file tax returns for previous years, provided you have the necessary documentation for those years. It’s important to file any missed returns as soon as possible to ensure compliance and to claim any potential refunds or credits you may be entitled to.
No, financial support received from your parents is generally considered a gift and is not taxable in Canada. Therefore, you do not need to declare this money on your tax return.
Yes, you must report the amounts received from scholarships, bursaries, and grants on your tax return. However, these amounts are typically non-taxable if you are enrolled in a program that entitles you to claim the full-time education amount. It’s essential to report these amounts accurately to determine your eligibility for certain credits and to carry forward any unused tuition amounts.
No matter how complex your financial needs are, our team is here to provide expert guidance and tailored solutions. If you have questions and prefer to speak with someone in real time, we’re here to help! Contact us directly or visit us during our walk-in hours. Our experienced team is ready to assist you with all your accounting and tax needs, including small business bookkeeping, tax filings, business incorporation, and personalized financial advice. Let’s find the best solutions for your unique situation.
As a non-resident earning rental income from property in Canada, the default tax obligation is a 25% withholding tax on the gross rental income. The payer (tenant or property manager) is responsible for withholding this tax and remitting it to the Canada Revenue Agency (CRA) by the 15th day of the month following the month in which the rent was paid or credited. At the end of the year, the payer should provide you with an NR4 slip, detailing the total rental income and the amount of tax withheld. This withholding tax is generally considered your final tax obligation on the rental income.
To potentially reduce your tax liability, you can elect to be taxed on your net rental income (gross rental income minus allowable expenses) by filing an election under Section 216 of the Income Tax Act. To do this, you and your Canadian agent (a resident of Canada who manages your rental property) must complete and submit Form NR6 to the CRA for approval before the first rental payment of the year is due. Once approved, your agent can withhold 25% tax on the net rental income instead of the gross amount. You are then required to file a Section 216 income tax return by June 30th of the following year to report the rental income and expenses. This approach allows you to deduct expenses such as property taxes, mortgage interest, insurance, and maintenance costs, potentially resulting in a lower overall tax liability.
A self-employed individual is someone who operates their own business or profession as a sole proprietor or an independent contractor. This includes freelancers, consultants, and small business owners across various industries. In Canada, self-employed individuals are responsible for reporting their business income and expenses on their personal tax returns and are subject to specific tax obligations, including the payment of Canada Pension Plan (CPP) contributions.
Yes, even if your small business has no employees, you are required to report your business income and expenses. If you operate as a sole proprietor or in a partnership, you will report your business income on your personal income tax return using **Form T212
As a business owner in Canada, you can deduct various expenses incurred to earn income. Common deductible expenses include:
It’s important to note that personal expenses are not deductible. Only the business-related portion of an expense can be claimed. For a comprehensive list of deductible expenses and detailed guidelines, refer to the Canada Revenue Agency’s (CRA) official documentation.
Our comprehensive payroll services are designed to streamline your payroll process and ensure compliance with federal and provincial regulations. Our services include:
By entrusting us with your payroll management, you can focus on your core business activities, confident that your payroll obligations are handled efficiently and accurately.
In Canada, if your business’s total taxable revenues exceed $30,000 over four consecutive calendar quarters, you are required to register for a Goods and Services Tax (GST)/Harmonized Sales Tax (HST) account and begin charging the applicable tax on your products or services. In Québec, the provincial sales tax is known as the Québec Sales Tax (QST). Once registered, you must collect both GST and QST (if applicable) on taxable supplies and remit these amounts to the appropriate tax authorities. We can assist you in the registration process and ensure you remain compliant with all filing and remittance requirements.
The sales tax you charge depends on the location of your clients:
It’s essential to stay informed about the specific tax rates and regulations in each jurisdiction. We can provide guidance to ensure accurate tax application and compliance.
Absolutely. We offer setup and training services for popular accounting software platforms, including QuickBooks, Sage 50 (formerly Simply Accounting), and Acomba. Our support includes:
Our goal is to empower you to manage your bookkeeping confidently and efficiently.
Absolutely. We understand that each business has its own set of challenges and circumstances. Our team of experienced professionals is equipped to handle a wide range of scenarios. We encourage you to reach out to us or visit during our walk-in hours, from 10 AM to 7:00 PM, Monday through Friday. We’re here to provide personalized solutions tailored to your specific needs.
In Québec, the general corporate income tax rate is 11.5%. When combined with the federal corporate tax rate, the total tax rate for businesses in Québec is 26.5%. For Canadian-controlled private corporations (CCPCs) eligible for the small business deduction, the combined federal and Québec tax rate can be lower. For detailed information and to determine how these rates apply to your business, please consult the Canada Revenue Agency’s corporation tax rates and the Québec provincial tax guidelines.
As a small business operating in Québec, you are required to:
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