Last blog added on Friday, November 4th, 2022

Information About MacDonald’s Tax Blog

Recent Posts

Below is a preview of the five most recent posts from the blog MacDonald’s Tax Blog. To read these posts in their entirely or subscribe to future updates from this blog, please visit their website!

  • How do I report my foreign pension income?

    Canadian residents are taxed on their worldwide income. If you have a pension from a foreign country you are required to report it on your Canadian tax return. For tax years from 2019 onward, the Canada Revenue Agency (“CRA”) advises to report the total amount in Canadian dollars of your foreign pen … Read more »

  • What are the penalties and interest for unreported income?

    If you are a Canadian resident, you are required to report all of your worldwide income, including foreign pensions, on your tax return each year. If you don’t, then you may have to pay federal and provincial penalties, plus interest compounded daily. There are basically two types of civil penalties … Read more »

  • What to do if you over-contribute to your TFSA

    If you contribute more than your available contribution room to your Tax Free Savings Account (“TFSA”) you will have to pay a tax equal to 1% of the highest excess TFSA amount for each month that the excess amount stays in your account. Generally, over-contributions are easy to fix. You instruct you … Read more »

  • Watch out for double conversion fees on your foreign currency account

    If you have a foreign currency account with a Canadian bank, watch out for double conversion fees. Double conversion fees occur when you withdraw money from your foreign currency account in that foreign currency. The bank will first convert your money to Canadian dollars and charge you a conversion … Read more »

  • CRA raised its prescribed rate of interest

    The Canada Revenue Agency (“CRA”) recently raised its prescribed interest rate that it charges on tax debts from 6% to 7% per annum. This is compounded daily. A few weeks ago I wrote an article about why you should pay your tax assessment even if you are appealing it. The reason is that the CRA cont … Read more »