Calendar quarter - A period of three consecutive months ending on the last day of any of the following months: March, June, September, and December.
Calendar year - The twelve-month period beginning January 1 and ending December 31. Depending on your business circumstances, you may or may not use the calendar year as your fiscal period.
Canada Pension Plan (CPP) - An insurance program to help Canadians provide income for their retirement. It also gives them income if they become disabled. Contributions are directly related to annual earnings.
Capital cost allowance (CCA) - A yearly deduction or depreciation on the cost of certain assets. You can claim CCA for tax purposes on the assets of a business such as buildings or equipment, as well as on additions or improvements, if these assets are expected to last for some years.
Capital gains - The amount by which proceeds of disposition less outlays and expenses exceed the adjusted cost base of capital property.
Capital loss - The amount by which the adjusted cost base and outlays and expenses of capital property exceeds proceeds of disposition.
Capital property is generally:
- any depreciable property that is eligible or would be eligible for a capital cost allowance deduction for income tax purposes; and
- any property, other than depreciable property, which, if you disposed of it, would result in a capital gain or capital loss for income tax purposes.
Cash method of accounting - With this method, you report income in the year it is actually received. Similarly, expenses are deducted in the year they are actually paid. Farmers, fishers, and certain salespeople who work on commission may use the cash method.
Commercial activity - Any business, adventure, or concern in the nature of trade carried on by certain persons, but does not include the making of exempt supplies. It also includes the supply of real property by any person, other than an exempt supply, and anything done in the course of making the supply or in connection with the supply.
A commercial activity does not include any business or adventure or concern in the nature of trade carried on without a reasonable expectation of profit by an individual, a personal trust, or a partnership where all the members are individuals.
Common-law partner - For the definition, see Marital status.
Confidentiality - The privacy of income tax and GST/HST returns and other related tax information. The only people with access to this information are those who are authorized by law or those to whom the taxpayer has given permission in writing.
Corporation - A form of business authorized by federal, provincial, or territorial law to act as a separate legal entity. Its purpose and regulations are set out in its article of incorporation. A corporation may be owned by one or more persons.
Cost of goods sold - The actual cost of the items sold in the normal course of business during a specific period.
Customs duties - Taxes you pay when you bring foreign goods into Canada.
