Final Thoughts

The Q2 2026 edition of Tax Tips & Traps highlights a recurring theme: good documentation and accurate accounting are often just as important as the tax rule itself.

Several taxpayers in the cases reviewed this quarter did not lose because their original business or financial decisions were inherently improper. They lost because their accounting records, supporting evidence, transaction structure or documentation did not support the position they later attempted to take.

Key lessons include:

• Do not allow inadequate bookkeeping resources to become a tax compliance problem.
• Document transactions between corporations, shareholders and family members carefully.
• Do not assume shareholder loans automatically offset personal expenses paid by a corporation.
• Repeated real estate development and resale activity can create GST/HST obligations.
• Adding relatives to title should be planned and documented before the transfer occurs.
• Benefit programs such as the CCB use specific residency tests that may differ from everyday understandings of parenting time.
• Employees and tradespeople should maintain clear records supporting deductible expenses.

If any of these developments apply to you, your family or your business, obtaining advice before completing a transaction or filing a return can help prevent unexpected tax consequences later.

Questions? Contact Kaplan Reinemo Professional Corporation at 905-513-6303.