A first home savings account (FHSA) is a registered plan which allows you, if you are a first-time home buyer, to save to buy or build a qualifying first home tax-free (up to certain limits).

Let’s be Clear - You might have used Casual Labour before, but don’t try it now!

Casual labour in Canada was and is generally defined as the performance of a service to or for a Company on a temporary or part-time basis.

Washington, DC CNN — 

This Story is from the USA but it also applies to Canada

Americans are living through the toughest housing market in a generation and, for some young people, the quintessential dream of owning a home is slipping away.

Simplified Northern Residents Travel Deduction – The CRA is launching the Simplified Northern Residents Travel Deduction, a pilot project to make it easier for northern residents to determine the lowest return airfare, one of the three amounts required to claim the travel deduction come tax time.

As the saying goes, death and taxes are both inevitable, but a good accountant can save you lots of trouble (and money) in this world anyway.

The reason truck drivers need accountants is because they are truck drivers. 

“You’d be surprised at the number of truckers who don’t know how to apply for a GST number,” says Paul Knibbs, owner of Truckers Business Consulting Group

Another problem arises when truck owners miss the annual deadline and neglect to file a tax return. One year rolls into the next and the same thing happens the following year.

Unfortunately, Revenue Canada will only let you claim GST for up to four years. So an owner/operator who has neglected to file for a decade could/will be out around $30,000 in GST rebates alone!

Another major concern is meal expenses. This includes truck drivers of all stripes, whether they are T-4’d company drivers, sole proprietors, or incorporated owners. Currently the government allows company drivers to claim $17 per meal, up to $51 a day without receipts, but you must submit a TL2 form.

A truck driver has to eat every day, just like a tax auditor.

You may not get everything you claim, on the other hand, you’re not going to get what you don’t ask for either.

An owner/operator, whether a sole proprietor or incorporated, is considered a small business. This allows him or her to claim a wide spectrum of expenses, from paper towels to truck washes to parking fees. Truck repairs, insurance, licence and registration fees, accounting fees and financing or leasing costs, capital cost allowance may be claimed, as can other business costs such as wages paid to employees and office expenses.

Depending on the circumstances, some business use of the trucker’s home may also be claimed. This may include rent or mortgage interest, home insurance, certain repairs and maintenance, heat and electricity, and a portion of property taxes where applicable.

Another mistake often made by owner/operators happens when paying cash for goods or services and failing to keep a receipt. This includes Interac purchases, which are the equivalent to paying cash. Staple the invoice or bill to your Interac receipt and you’ll be able to show specifically what you spent your money on.

Lastly, finding a good accountant is like finding a good mechanic. They’ll save you tens of thousands of dollars over the course of your career. Once you have found one never let them go.

This new law will affect most small business owners

Some business owners sprinkle income to family members by way of salary or wages, or dividends, to reduce the family's overall tax burden. There are already rules in place to prevent unreasonable salary or wages from being paid to family members who are not truly earning the compensation they receive. There are even "kiddie tax" rules to prevent dividends paid to minor children from being taxed at their lower rates.

So, what's changing? The government wants to now restrict the ability to pay salary or wages, or dividends, to adult children between the ages of 18 and 24, by extending the "kiddie tax" rules – formally called the "tax on split income" (TOSI) – to them. The proposals will apply a "reasonableness test" that will assess the adult child's contributions to the business (both labour and capital) in determining whether amounts paid to that child should be taxed at his or her normal tax rates, or at the highest tax rate possible.

In the past, families have also taken advantage of the lifetime capital gains exemption (LCGE), which shelters from tax up to $835,716, in 2017, of capital gains on qualifying small-business corporation shares). Good tax planning has seen the LCGE of each family member used to shelter gains on the family business. The government has proposed to restrict this. Starting after 2017, capital gains realized by a family member can no longer be sheltered with the LCGE to the extent those gains accrued while the individual was a minor. Further, any capital gains accrued while the shares are held in a family trust, or gains subject to the TOSI would not be eligible for shelter using the LCGE.

Finally, in the past, the TOSI (which you'll recall is a special tax, at the highest rate going, that applies to certain income reported in the hands of children) has not applied to second generation income – that is, income on income. So, if a corporation paid, say $100 in dividends to a child, and the child paid the highest rate of tax (the TOSI) of, say, $40, there would be $60 left after taxes. That $60 could be invested and any income in the future on that $60 (income on the income) would not be subject to the high rate of tax (the TOSI). This will change if the new proposals are enacted. All future income (income on any income) will be subject to the same high rate tax (the TOSI). Confused yet?

Passive income

When a corporation generates income, it's eligible for a pretty attractive rate of tax (about 15 per cent, but it varies by province) on the first $500,000 (federally) of active business income. If a business owner doesn't need all of his earnings to support his lifestyle, it's common to leave the rest in the corporation to invest – perhaps in a portfolio earning passive income. For example, if you earn $100 in active business income and pay $15 of that to the taxman, you'd have $85 left to invest in the corporation. If you had earned that business income personally, and you're in the highest tax bracket (a marginal tax rate of about 50 per cent), you'd be left with just $50 to invest. So, there's an advantage to earning business income in a corporation if you earn enough that you won't spend it all.

The government thinks this is unfair, notwithstanding that you'll actually pay more tax over all if you invest inside the corporation and then eventually pay that income out to yourself as dividends later. That's right, corporate tax rates on passive income are high even under today's rules – don't let the government tell you otherwise. So, the only meaningful benefit is the larger amount to invest up front as noted in my example above. It appears that the government believes that having more money working for you today, if you have a corporation, is offensive (so much for helping Canadians save for the future).

The government is exploring how to limit the perceived benefit of leaving excess earnings inside a corporation to grow in a passive portfolio. Mr. Morneau is looking for comments from Canadians on a couple of primary options: (1) implementing a refundable tax that would apply to ineligible investments (the tax would be refunded once the capital is either paid out to you as taxable dividends personally, or is used in the active business), or (2) change the current refundable tax system on annual passive income so that the tax is no longer refundable if the investments were made with excess business income taxed at low rates. How does all of this simplify our tax system?

Converting income to capital gains

Some corporate owners have taken steps to convert what would otherwise be taxed as salary or dividends into capital gains. This has been done using a complex set of steps involving selling of some shares to another company related to the shareholder. The government proposes to close these opportunities by tweaking section 84.1 of our tax law, which was intended to prevent this type of planning but doesn't quite do the trick. On this one, I think the changes make sense.

If you're so inclined, read over the 63-page consultation paper that outlines these proposed changes (available on the Department of Finance website). In my view, what you'll find are a lot of changes that will do nothing but make our convoluted tax law even more complex.

M T and T Accounting is Happy to Back Nicole Proseilo For Airdrie City Council See the Attached newspaper Article

http://www.airdrieecho.com/2017/07/13/proseilo-announces-council-bid

Protect yourself against fraud

Know how to recognize a scam
Examples of fraudulent communications
How to protect yourself from identity theft
Have you been a victim?
Scam stories
External resources
Print-ready posters and handout for service providers

Know how to recognize a scam

There are many fraud types, including new ones invented daily.

Taxpayers should be vigilant when they receive, either by telephone, mail, text message or email, a fraudulent communication that claims to be from the Canada Revenue Agency (CRA) requesting personal information such as a social insurance number, credit card number, bank account number, or passport number.

These scams may insist that this personal information is needed so that the taxpayer can receive a refund or a benefit payment. Cases of fraudulent communication could also involve threatening or coercive language to scare individuals into paying fictitious debt to the CRA. Other communications urge taxpayers to visit a fake CRA website where the taxpayer is then asked to verify their identity by entering personal information. These are scams and taxpayers should never respond to these fraudulent communications or click on any of the links provided.

To identify communications not from the CRA, be aware of these guidelines.

If you receive a call saying you owe money to the CRA, you can call us or check My Account to be sure.

If you have signed up for online mail (available through My Account, My Business Account, and Represent a Client), the CRA will do the following:

• send a registration confirmation email to the address you provided for online mail service for an individual or a business; and
• send an email to the address you provided to notify you when new online mail is available to view in the CRA's secure online services portal.

The CRA will not do the following:

• send email with a link and ask you to divulge personal or financial information;

Canada Revenue Agency launching info line after loss of encrypted data DVD by private courier service

The Canada Revenue Agency (CRA) takes the protection of Canadians’ tax information very seriously. The confidence and trust that individuals and businesses have in the CRA is a cornerstone of Canada’s tax system.

The CRA has been notified that a DVD containing encrypted taxpayer information, sent by registered courier service and destined for the Government of Yukon, has been lost by the courier service. The DVD contained the tax information of approximately 28,000 taxpayers who were residents of the Yukon Territory in the 2014 tax filing year. The registered courier service has launched a search to locate the missing DVD, and the CRA has notified the Office of the Privacy Commissioner of Canada about the incident.

At this time, there is no indication that the data has been accessed or used. And given the strong security measures in place, the risk is thought to be very low that the taxpayers’ information would be compromised even if an unauthorized individual were to gain possession of the DVD. The information on the DVD is protected using an accredited encryption module that is approved by the Communications Security Establishment for the protection of information of this nature.

The CRA administers various programs on behalf of the provinces and territories. As a result, we regularly provide provinces and territories with taxpayer data for their jurisdictions. These data transfers are governed by written information-sharing agreements, and strict protocols are in place to ensure that all taxpayer information is appropriately protected at all times.

The use of encrypted CDs and DVDs is a common practice when it comes to the exchange of information for tax purposes. It is subject to stringent requirements in relation to how storage devices (like encrypted DVDs) and hardcopies of information are handled, including document marking, storage, destruction, erasure, and access. An initial internal investigation indicates that CRA personnel complied with Government and Agency policies that govern physical security, encryption and password protection. As a result of this event, the CRA will continue to work with the Privacy Commissioner of Canada and other stakeholders to whom we normally transfer and receive data to determine whether and how our processes can be strengthened going forward.

The CRA is one of the largest service organizations in the country, with an employee population that exceeds 40,000. All CRA employees receive mandatory security training, which includes the protection of taxpayer information.

Although the risk to affected taxpayers is thought to be very low, individuals impacted by this incident will be formally notified by registered letter from the CRA. Anyone with questions about their personal information can call 1-866-426-1527 (Monday to Friday 9-5 PST).

Good Morning Everyone. I hope you all had a great Christmas I have 4 Free tickets for the Hitman game on Monday Jan 2nd at 4pm in section 105 if you are interested send me a private message.

Wishing you a very happy and prosperous New Year

J.R. and Staff of M T and T Accounting

The Government of Canada values the contribution teachers make providing young Canadians with the education and skills they need to join a strong middle class.

There is a new refundable tax credit for 2016 and beyond: the Eligible Educator School Supply Tax Credit. If you are an eligible educator you can now claim a 15% refundable tax credit on up to $1,000 of supply purchases per year.

Who is eligible?

You can only claim this tax credit if you are a teacher or early childhood educator employed at an elementary or secondary school or a regulated child care facility:

• You must have a teacher’s certificate that is valid in the province or territory where you are employed; or
• You must have a certificate or diploma in early childhood education that is recognized in the province or territory where you are employed.

What kinds of teaching supplies are eligible?

For your supplies to be eligible for this credit, they must be:

• purchased in the taxation year by an eligible educator;
• used in a school or in a regulated child care facility for teaching or helping students learn;
• not reimbursable and not subject to an allowance or other form of assistance (unless the reimbursement, allowance or assistance is included in the income of the teacher or educator and not deductible); and
• not deducted or used in calculating a deduction from any person’s income for any taxation year.

Some examples of eligible supplies include:

• construction paper;
• flashcards;
• items for science experiments;
• art supplies;
• various writing materials
• games and puzzles;
• books for the classroom; and
• educational support software.

If you claim this tax credit, the CRA may ask you to provide a certification from your employer attesting to the eligible supplies expense. You should request the certification from your employer in a timely manner and keep it in your files, along with your receipts, in case the CRA requests it.

Here are some tips to help you do your taxes:

1. Remember to collect all T4s from all jobs, and be sure to report them on your tax return. This is to make sure you get the correct refund amount.
2. Know what you are eligible for in advance. As a student, there are many things you may be able to claim, including your:
   • Tuition fees
   • Education amount
   • Textbook amount
   • Interest paid on your student loans
   • Public transit amount
   • Eligible moving expenses
   • GST/HST credit; and
   • Your child care expenses.
3. Remember to keep your address up-to-date if you move for work or school. You can change your address easily in My Account.
4. You can let a parent or another person deal with the CRA on your behalf by using the Authorize my representative service in My Account. Your representative will have then access to your information and the online services to easily manage your account.
5. Need help doing your taxes? The Community Volunteer Income Tax Program (CVITP) may be able to prepare and file your tax return for you if you have a modest income and a simple tax situation. For more information, go to cra.gc.ca/volunteer.
6. Sign up for CRA’s online services to make taxes easier and get your refund faster. File your income tax and benefit return, make a payment, track your refund, receive your notice of assessment, and more. Also, sign up for direct deposit and get your refund deposited straight into your account. For more information, go to cra.gc.ca/getready.
7. Get the myCRA mobile app and view your tax information anytime, anywhere. To easily keep track of any benefit payments, get the MyBenefits CRA mobile app.
8. The CRA has a YouTube channel full of videos that help you understand Canada’s tax system. Check out our two videos that will help you put cash back in your pocket this filing season: Filing your Tax Return and Filing by Yourself.  

Minister Lebouthillier announces the launch of national consultations to better understand the needs of Canadian small and medium businesses

The Government of Canada recognizes the important role of small and medium size businesses in creating jobs and supporting the economy. That is why the government has committed to making the Canada Revenue Agency (CRA) a fairer, more service oriented organization to help support these businesses, while ensuring tax fairness for the middle class.

Today, at the official launch of the Serving You Better consultations, the Honourable Diane Lebouthillier, Minister of National Revenue, highlighted her commitment to make the CRA an agency that offers first-class government services to both businesses and Canadians. The Serving You Better consultations are a forum for small and medium businesses and professional accountants to share valuable insights that the CRA can use to make its programs and services more streamlined and client-focused.

In the coming months, small and medium businesses will be invited to share their vision of the CRA’s services at Serving You Better consultations, which will take place in Whitehorse, Richmond, Yellowknife, Edmonton, Regina, Winnipeg, Mississauga, Québec, Iqaluit, Moncton, Dartmouth, Charlottetown and St. John's. Professional accountants will also be able to share their comments at sessions to be held in Vancouver, Yellowknife, Edmonton, Winnipeg, Mississauga, Ottawa, Québec, Dartmouth and Iqaluit. The CRA wants to hear their views on service improvements made to date and on new initiatives aimed at meeting their needs.

To participate in the consultations, go to canada.ca/cra-serving-you-better. Those who cannot attend in person or who want to give feedback immediately can also do so online at cra-engage-arc.ca/en.

To find out more about the CRA’s action plan to serve small and medium businesses better, go to canada.ca/cra-serving-you-better.

Quotes

“Our government is committed to establishing programs and services for small and medium business owners that better respond to their needs. The Serving You Better consultations, organized in collaboration with the Canadian Chamber of Commerce and Chartered Professional Accountants Canada, will allow senior managers of the CRA to hear directly from the people we serve. As a result, we will better understand what changes would be meaningful for Canadian businesses.”

- The Honourable Diane Lebouthillier, Minister of National Revenue

“The Canadian Chamber of Commerce is pleased to organize the 2016 Serving You Better roundtables with the Canada Revenue Agency. We’ve seen in previous consultations how effective our voice and yours can be. Our members are looking forward to providing the CRA with new ideas for improved tax services so we can build a more competitive environment for businesses.”

- The Honourable Perrin Beatty, President and CEO, Canadian Chamber of Commerce

“Effective service delivery requires two-way communication between the clients of the services and those who decide on their delivery. The government roundtables provide a valuable avenue for that important dialogue to take place.”

- Gabe Hayos, FCPA, FCA, Vice-President, Taxation, CPA Canada

We here at m T and T Accounting what to Thank all the drivers that spend so much time away from their families to bring us all the things we want and need,
IF YOU GOT IT A TRUCK BROUGHT IT.
Thank you and stay safe

Did you know?

The Canada Revenue Agency (CRA) is redesigning its client correspondence, including the goods and services tax/harmonized sales tax credit (GST/HSTC) notice for individuals, following an extensive evaluation completed in the fall of 2014. The CRA made changes to make the information easier to read and understand, focusing on how the notices are structured, designed, formatted, and written.

What does this mean for you?

Starting in July 2016, the CRA will begin sending a new, simple, and easy-to-read GST/HSTC notice. The re-designed notice will have the most important information on the first page, presented in a clear format.

How has the GST/HSTC notice been improved?

• The most important information, such as the account summary and payment period information is clearly displayed on the first page.
• The text is easier to understand and includes only the necessary information.
• Additional CRA services you may be interested in are highlighted. This includes online services like Direct Deposit, My Account, and help for persons with hearing or visual impairments such as operator-assisted relay service. 

The simplified GST/HSTC notice is part of the Government of Canada’s commitment to make the CRA more client-focused and more helpful by improving the ways we communicate with Canadians.

For a more convenient way to access your CRA correspondence, such as your benefit notice and notice of assessment, go to My Account and register for online mail.

Source: CRA

I don't think this man realizes that to Take Trucks Off the Road and replace them with the Rail Road they will have to Build a spur line to every convince store in North Amercia

http://www.livetrucking.com/bernie-sander-says-hell-take-semis-off-the-road-if-elected/

We have recently been informed that it is time for the Canada Revenue Agency’s annual fishing trip! CRA will soon be conducting its seventh annual Office Audit Letter Campaign. Starting shortly, the CRA will send approximately 30,000 “intent-to-audit” letters to selected groups of individual taxpayers and business owners who claim consecutive business or rental losses or who are employees claiming employment expenses on line 229 of their tax return. (Form T777) The objective for CRA is to encourage recipients of the letter to take a second look at their tax returns and to determine if they have in fact made an error or oversight. If errors or oversights are identified, CRA would then like the taxpayer to make the necessary corrections through ‘My Account’ on the CRA Website or by submitting form T1-ADJ for the relevant year(s). CRA says the objective of these campaigns is to help small business owners and individual taxpayers to better understand their obligations and responsibilities when it comes to the Income Tax Act. CRA also goes on to state that it helps them to better utilize their resources (auditors) by having the taxpayer effectively audit themselves. If this seems a little deceptive or misleading to you - you are right! IF you receive one of these letters, DO NOT RESPOND TO CRA without first consulting a Tax Professional or a Tax Lawyer! Anything you disclose to CRA in this manner can be held against you and used to further their objectives (collect more tax) in the future.

Remember your rights as a taxpayer: The 2007 Taxpayer Bill of Rights includes 15 fundamentals that are supposed

to be guaranteed to each taxpayer: • to receive entitlements and to pay no more and no less than what is required

by law • to service in both official languages • to privacy and confidentiality • to a formal review and subsequent

appeal • to be treated professionally, courteously and fairly • to complete, accurate, clear and timely information •

as an individual, not to pay income tax amounts in dispute before you have had an impartial review • to have the

law applied consistently • to lodge a service complaint and to be provided with an explanation of the CRA’s findings

• to have the costs of compliance taken into account when administering tax legislation • to expect the CRA to be

accountable • to relief from penalties and interest under tax legislation because of extraordinary circumstances • to

expect the CRA to publish its service standards and report annually • to expect the CRA to warn you about

questionable tax schemes in a timely manner • to be represented by a person of your choice This campaign is a

scare tactic, nothing more. It does however, let you know that CRA is watching and they are targeting selected industries and individuals that are generally less than fully compliant. 

Did you know?

Taxpayers who own specified foreign property costing more than $100,000 but less than $250,000 throughout the year can now file Form T1135, Foreign Income Verification Statement using a new simplified reporting method.

This simplified reporting method reduces your paperwork while allowing the CRA to continue to address international tax evasion and aggressive tax avoidance.

Important information

All Canadian resident taxpayers are required to file Form T1135, Foreign Income Verification Statement if, at any time in the year, the total cost of all specified foreign property to the taxpayer was more than $100,000 (Canadian).

The Government of Canada is committed to making it easier for you to meet your tax obligations. The CRA has revised the form to now include two parts: Part A features a simplified reporting method for taxpayers who held specified foreign property with a total cost of less than $250,000 throughout the year. This reporting method allows taxpayers to simply check a box for each type of property they held.

Part B continues to provide the detailed reporting method that taxpayers must use if they, at any time during a year, owned specified foreign property with a total cost of $250,000 or more.

Taxpayers who meet the criteria for completing Part A can still use the detailed reporting method in Part B if they wish.

Don’t forget to file your return and Form T1135 on time! Beginning with the 2013 tax year, the period for reassessing an income tax return is extended by three years if a taxpayer has failed to report income from a specified foreign property on their return and Form T1135 was not filed, was not filed on time, or was filed inaccurately.

For more information on Form T1135, go to Foreign Income Verification Statement, or read our questions and answers.

Fast facts for individuals about filing Form T1135 online:

• Launched earlier this year, you can now file Form T1135 online for the 2014 and subsequent tax years.
• Filing Form T1135 online is easy. Certified software and web applications (some of which are free to use) help you every step of the way.
• You can file Form T1135 online with your tax return or separately, but the filing deadline is the same for both.
• Filing online is secure. The CRA uses the same high level of online security as Canadian financial institutions.
• If you need to file Form T1135 for taxation years before 2014, you must file a paper form. Detailed instructions are written on the back of the form.
• We encourage all taxpayers to take advantage of the CRA’s Voluntary Disclosure Program when filing a Form T1135 for prior years.  

With The Christmas season coming fast, one of the last things you are thinking of is the Tax season that comes right after. That is why we are offering this special. For any new clients that signs up for our full cycle Bookkeeping and Tax service, we are offering 25% off of your 1st year.

This includes All Bookkeeping, Tax preparation and filing, GSt returns, Annual Returns for Corporations, advisor service, and CRA Audit defence at no extra charge.

So give us a call to set up your Free no obligation meeting and see how we can take care of your books while you take care of your business 

Some New news regarding GST/HST Filing. If you have any questions feel free to call our office at 403-398-2476

http://www.cra-arc.gc.ca/E/pub/gm/15-119/15-119-e.html?utm_source=businesses&utm_medium=eml

https://www.youtube.com/watch?v=gUOqcHRTDp8

Hello Everyone Please note that our New Phone number is 403-398-2476

1. Incorporate:  Not everyone needs to incorporate but there are several benefits to doing so. One of the most important steps an owner/operator can take is to form a corporation. Incorporating “creates a filter between your personal assets and Revenue Canada. This is a very important step if you plan on paying family members such as your spouse or children for jobs such as bookkeeping or washing the truck. Revenue Canada looks badly Sole Proprietors that try and split there income between themselves and their spouse or children.  Revenue Canada may look at it and say ‘It’s really just you, what’s happening here? If a corporation does it, it’s Legal and above board.

2. Keep your logbooks: Many Owner/operators only keep their logbooks for six months. That's fine for a the DOT Audit but if you’re using your logs to validate your meal allowances then they become a tax document and must be kept for seven years.  Revenue Canada lately has been auditing meals. A lot of people don’t have the right documents to support their claims. So it’s more important than ever to have documentation that supports your claims, Also make sure you keep a log book for use of your personal car or truck for Business this does not have to be elaborate but it must show at the least the starting and ending mileage for the year and the mileage for business and personal use. Make sure the numbers add up.

3. Keep good Bookkeeping Records If your stated income doesn’t mesh with your GST claims, you could be in trouble.

4. Track the little things: As an independent owner/operator you have the ability to claim a portion of your rent or mortgage as office space. You can also claim office expenses ranging from pencils to logbooks – things you may pay cash for and forget about. Tools such as tire chains should also be claimed. I advises truckers to keep receipts for everything that’s work-related and to stay organized throughout the year, even if that means visiting your accountant on a regular basis. If you are in doubt if you should keep a receipt  "Keep It" and let your accountant make the call. Your bookkeeping and accounting should be done on a monthly basis  whether by yourself or by a Bookkeeper thus freeing time up for yourself. Your income statement should be reviewed throughout the year. We can’t consult people when we see them once a year.

5. Hire a specialized accountant: That brother-in-law whose been filing your income tax for the last 10 years may be cheaper than an accounting firm that specializes in trucking, but does he really understand the ins and outs of the business? Chances are he doesn’t and chances are it’s costing you money. Dealing with a specialized accountant that deals specifically with trucking allows you to maximize your claim and minimize the taxes you’re forking out each year. A general accountant probably won’t get it all right, especially when it comes to things like meals. it’s important to sit down with an accountant who knows the trucking industry and discuss the intricacies of your business. An accountant who specializes in trucking will then be able to determine how you can maximize your claim. “If you want the H&R Block treatment where you walk in and walk out, that’s fine but I wouldn’t recommend it for your industry. 

We now have a twitter account. Feel free to follow and lets talk soon

Hello Everyone I hope you had a great Halloween.

This post is to inform you that we now offer Federal and Provincial Incorporation Service along with Minute book up keeping.

When you think of Bookkeeping and Taxes you don't usually Laugh so here is one for you.   So you can laugh while we take care of all your bookkeeping and tax needs.

https://www.facebook.com/GabrielIglesias/videos/10153618002934602/?fref=nf

June 19, 2015 Ottawa, Ontario Canada Revenue Agency

The Canada Revenue Agency (CRA) today announced the prescribed annual interest rates that will apply to any amounts owed to the CRA and to any amounts the CRA owes to individuals and corporations. These rates will be in effect from July 1, 2015 to September 30, 2015.

There have been no changes to the prescribed interest rates since last quarter, except for the interest rate for corporate taxpayers’ pertinent loans or indebtedness.

Income tax

• The interest rate charged on overdue taxes, Canada Pension Plan contributions, and employment insurance premiums will be 5%.
• The interest rate to be paid on corporate taxpayer overpayments will be 1%.
• The interest rate to be paid on non-corporate taxpayer overpayments will be 3%.
• The interest rate used to calculate taxable benefits for employees and shareholders from interest‑free and low-interest loans will be 1%.
• Change: The interest rate for corporate taxpayers’ pertinent loans or indebtedness will be 4.61%.

Other taxes, duties, or charges

The interest rates on overdue and overpaid remittances will be as follows:

The overdue remittance rate is the rate of interest the taxpayer must pay on amounts due to the CRA.

The overpaid remittance rate is the rate of interest the CRA must pay on amounts due to the taxpayer.

July 17, 2015 Mississauga, ON Canada Revenue Agency

The Honourable Kerry-Lynne D. Findlay, P.C., Q.C., M.P., Minister of National Revenue and Brad Butt, Member of Parliament for Mississauga-Streetsville reminded Mississauga parents today that the Universal Child Care Benefit payments will land in almost 4 million mailboxes or bank accounts starting July 20th, totaling over $2.986 billion.

A family with two kids will get as much as $1,000 in a single day under the Harper Government’s Universal Child Care Benefit. Parents may spend this money on child care services, back-to-school supplies, sports activities and much more, boosting the economy and creating jobs across Canada.

Under the boosted UCCB, families would receive up to $1,920 per year for each child under 6 and up to $720 per year for each child aged 6 through 17. The new benefit amounts are retroactive to January 1, 2015 and will be reflected in monthly payments to families in July 2015. That means families will receive retroactive payments of up to $520 for each child under 6 and about $420 for each child 6 through 17. The boosted UCCB will benefit more than 4 million families, double the number of families that previously benefited from the program.

This is on top of the Family Tax Cut which allows couples with children under 18 to split their income and reduce their tax burden by as much as $2,000. This is in addition to any payments received under the Child Tax Benefit, which remains unchanged.

Minister Findlay encouraged local families to apply for the benefit if they have not already done so. Parents and guardians can apply anytime and receive the benefit. If your family is not currently receiving the UCCB, has never received the UCCB, or has never applied for the Canada Child Tax Benefit and you still have children under 18 in your care, please go to www.canada.ca/taxsavings to find out how you can apply. Or Contact Your Tax Professional

Employees and self-employed workers – Responsibilities, benefits, and entitlements

Introduction

The Canada Pension Plan (CPP)/Employment Insurance (EI) Rulings Program issues a decision, which is called a ruling, about a worker’s employment status, when it is requested by the payer, the employer, the self-employed worker, the employee, the Canada Employment Insurance Commission (CEIC), or the Minister of Employment and Social Development.

Employees and self-employed workers have different responsibilities, benefits, and entitlements, and it is important for both, as well as for their employers and payers, to be aware of these differences.

Employees

Employees have certain entitlements, such as CPP and EI benefits and protection under employment standards and health and safety and workers’ compensation laws.

Under CPP and EI legislation, both the employer and the employee may be obligated to contribute to the CPP when the employee is in pensionable employment and to EI when the employee is in insurable employment. Employers make CPP contributions and pay EI premiums for each employee and deduct CPP contributions and EI premiums from amounts they pay their employees and remit these amounts to the Canada Revenue Agency (CRA). For CPP contributions, the employer and employee portions are the same. For EI premiums, the employer portion is generally 1.4 times the employee portion.

When the employment is in Quebec, the employer and the employee may be obligated to contribute to:

• the Quebec Pension Plan (QPP); and
• the Quebec Parental Insurance Plan (QPIP) for access to maternity, paternity, parental, and adoption benefits

Most businesses or industries have to follow employment standards under provincial or territorial employment standards legislation; however, some businesses or industries are federally regulated, in which case the employment standards that regulate an employee’s conditions of work are defined by the Canada Labour Code.

Federal and provincial/territorial employment standards cover minimum wage, vacation pay, holiday pay, and overtime pay. For more information, go to Federal Labour Standards or Provincial and Territorial Ministries of Labour.

Employees may be entitled to deduct certain employment expenses, including motor vehicle expenses. All legislative requirements must be met, including having the employer fill out and sign Form T2200, Declaration of Conditions of Employment. For more information, go to Guide T4044, Employment Expenses.

Self-employed workers

A self-employed worker may operate a business on his or her own as a sole proprietorship or with others under a partnership.

All self-employed workers pay both the employer and employee portions of CPP contributions when they file their T1 income tax and benefit return using Schedule 8, CPP Contributions on Self-Employment and Other Earnings.

Self-employed workers do not pay EI premiums unless they opt into the EI program for access toemployment insurance special benefits, which include maternity, parental, sickness, compassionate care, and parents of critically ill children benefits. If they want to opt in, they have to register with theCEIC.

When self-employed workers opt into the EI program to access EI special benefits, they pay the sameEI premium rate as employees pay. These EI premiums are paid when the self-employed worker files his or her T1 income tax and benefit return using Schedule 13, Employment Insurance Premiums on Self-Employment and Other Eligible Earnings. Unlike with the regular EI program, self-employed workers do not have to pay the employer’s portion of EI premiums.

All self-employed residents of the province of Quebec pay Quebec Parental Insurance Plan (QPIP) premiums for access to benefits for maternity, paternity, parental, and adoption leave.

Self-employed workers may be entitled to deduct certain expenses. For more information on these expenses, go to Business expenses.

For more information, go to Small businesses and self-employed, Contributions to the Canada Pension Plan, and Employment Insurance Benefits for Self-Employed People.

How to request a ruling

If a worker or a payer is unsure of the worker’s employment status, either party can request a ruling from the CRA to have the status determined.

Rulings can be requested for many reasons, not only to determine a worker’s employment status. More information on these reasons and the ruling process is available at

 How to obtain a ruling for Canada Pension Plan and employment insurance purposes.

As a Monthly member of our Bookkeeping and Tax service we will take care of these types of situations so you don't have too

With our busy lifestyles and espicalite for Truck Drivers and Owner/Operators that are on the road  so much Online mail makes so much good sense her is a link to a CRA website for more information and to sign up for online mail from the CRA.

http://www.cra-arc.gc.ca/nwsrm/txtps/2015/tt150415-eng.html?utm_source=mediaroom&utm_medium=eml

Did you know?

The Canada Revenue Agency (CRA) has an online mail service for individuals. This service is quick, easy, and secure. It lets individuals receive their notices of assessment and reassessment online, instead of waiting for a paper version to come through the mail. More correspondence will be made available online in the future!

Why register for online mail?

• Paperless—viewing your correspondence online means less paper clutter around the house. The CRA even sends you an email notification when there is new mail in your secure online account, so you won't miss a thing.
• Convenient—you can view your notice of assessment anytime, anywhere, and you can print it off whenever you need it! No more searching for the paper copy or having to call the CRA to request a copy.
• Secure—the CRA takes the protection of Canadians' tax information very seriously. The CRA uses the same high levels of security that financial institutions use to protect your banking information.

How to register:

• Register with My Account (or log into your existing account) and select the “Manage online mail” option.
• Provide your email address on your 2014 tax return. This can be done with your tax preparation software or on your paper return. If you use the services of a tax preparer, you can ask them to include your email address when they prepare your return. Once you provide your email address, the CRA will register you for the online mail feature. To start viewing your correspondence online, simply register for the CRA’s My Account service if you are not already registered.

For more information, go to http://www.cra-arc.gc.ca/esrvc-srvce/tx/ndvdls/nlnml-eng.html, or watch our online mail video!

Access Fees:

• Internet (Cell phone data plans)
• Satellite (Qualcomm, Sirius/XM)

Administrative Fees:

• ATM Fees
• Check Reorder Fees

Association Dues

• OOIDA, Teamsters, etc

ComData/ComCheck Fees:

• Computer Software
• Credit Card Fees

Cleaning Supplies:

• Window Cleaner
• Paper Towels
• RainX

Interest:

• Business Loan
• Credit Card

Office Supplies:

• Pens, Pencils, Paperclips, Envelopes, Folders, Rubber Bands

Medical Exams

• DOT Physical
• Drug Tests
• Sleep Apnea Study

Postage Fees:

• For Mailing Invoices, Bills of Lading, etc…

Real Estate Expenses:

• Mortgage interest

• Mortgage prepayment penalties
• Penalties of early withdrawals
• Points on principal residence financing

• Real estate taxes

Safety Gear

• Steel-toe boots
• Work Gloves
• Cargo straps

Trucking & Business Related Subscriptions

• Load board subscriber fees
• Trucking industry magazines

Uniforms

• Dry Cleaning Costs for your uniforms or protective clothing

Don’t make the same mistake as many truck drivers, falling into the trap of trying to claim too much and ending up with an audit.  Here are some non-deductible expenses that many truckers’ need to leave off:

NON-Deductible Expenses:

• Expenses that were reimbursed by your employer
• Clothing that is adaptable to everyday wear
• Commuting costs (tolls, gas, parking)
• Home phone line
• Interest on personal loans
• Personal vacations

Special Notes For Owner-Operators:

• You CANNOT deduct the time you incur from working on your own equipment
• You CANNOT deduct the income lost as a result of deahead/unpaid mileage, ONLY the expenses incurred to operate the truck during that time such as fuel, tolls and scales. etc.
• You CANNOT deduct for downtime

Note: Your tax situation is unique. This article does not give nor is it intended to give specific tax advice. Please confer with your own licensed tax/accounting professional.

A big thanks to Jack Vyhnalek at TDA Accounting Partners for answering tax questions from our readers in the comments section! Always nice to find someone who wants to earn your business, not just advertise for it.

http://bc.ctvnews.ca/revenue-canada-td-bank-warn-of-text-scams-1.2294962

What you should know about digital currency

What is digital currency?

Digital currency is virtual money that can be used to buy and sell goods or services on the Internet. Bitcoins are an example of digital currency. Bitcoins are not controlled by central banks or any country, and can be traded anonymously. Bitcoins can be bought and sold in return for traditional currency, and can also be transferred from one person to another

Do tax rules apply when digital currency is used?

Yes. Where digital currency is used to pay for goods or services, the rules for barter transactions apply. A barter transaction occurs when any two persons agree to exchange goods or services and carry out that exchange without using legal currency. For example, paying for movies with digital currency is a barter transaction. The value of the movies purchased using digital currency must be included in the seller’s income for tax purposes. The amount to be included would be the value of the movies in Canadian dollars.

More information on the tax implications of barter transactions is available by consulting the Canada Revenue Agency’s Interpretation Bulletin IT-490, Barter Transactions.

Digital currency can also be bought or sold like a commodity. Any resulting gains or losses could be taxable income or capital for the taxpayer. Paragraphs 9 to 32 of Interpretation Bulletin IT-479R, Transactions in Securities, provide information that can help in determining whether transactions are income or capital in nature.

Where an employee receives digital currency as payment for salary or wages, the amount (computed in Canadian dollars) will be included in the employee’s income pursuant to subsection 5(1) of theIncome Tax Act.

Should I be concerned about reporting requirements when using digital currency?

Not reporting income from domestic or foreign sources is illegal. Canadians should know that the Canada Revenue Agency (CRA) is very active in pursuing cases of non-compliance, in order to ensure that the tax system remains fair for everyone.

If required, you should take this opportunity to correct your tax affairs through the CRA’s Voluntary Disclosures Program. For more information, go to www.cra.gc.ca/voluntarydisclosures.

Extended cab pickup trucks are often seen on farms and construction sites. However, while the extra passenger space is useful, most farmers would tell you, that their truck is first and foremost a working vehicle.

CRA Views Extended Cab Trucks as Passenger Vehicles

CRA has tended to disagree and has challenged and reassessed individuals for claims relating to a pickup truck with extended cab.

The challenge is based on the Income Tax Act definition of a pickup truck as a vehicle with seating for 1 to 3 people, including driver. A pickup truck with extended cab and seating for 4 to 9 people is classified as a passenger vehicle.

Passenger Vehicles Provide Fewer Tax Claims

Classifying extended cab trucks as passenger vehicles severely limits the Capital Cost Allowance (CCA), GST Input Tax Credit (ITC), lease and interest costs that may be claimed for tax purposes.

Some Exceptions

However, a pickup truck with extended cab used all or substantially all to transport goods, equipment, or passengers can be classified as a motor vehicle. All or substantially all is typically interpreted by CRA as that it’s used 90% or more for business use. To support this, a comprehensive log of vehicle use is usually required.

Taxable Benefits

If not supported, CRA automatically assumes the vehicle was driven at least 20,000 kilometres per year for personal use. The personal use of the vehicle is considered a taxable benefit and is taxed in the form of a standby charge and operating expense benefit.

Standby charges amount to 2% per month of the original cost of the vehicle or two-thirds the value of the lease payment. On a $40,000 vehicle, the standby charges and operating benefit could be significant. The personal mileage threshold is 20,000 kilometres and reduces the standby charge proportionally for any personal driving that is less than that amount.

Another exception for a pickup truck with extended cab is if it’s used more than 50% for the transportation of goods, equipment or passengers at work sites at least 30 km from the nearest urban center having a population of 40,000. It would then be considered a motor vehicle, not a passenger vehicle.

Case of 2 Farmers and 2 Pickups

In one case, two farmers operating a corporate farm were able to provide detailed, but still general, data about their usage of two corporate-owned extended cab trucks. The trucks were used to haul grain samples to various elevators for grading and pricing and also great distances to obtain replacement parts for equipment.

The judge found their presentation credible enough to stand without a log and they were entitled to have their standby charges reduced accordingly. The judge however, affirmed that the trucks were properly classified as automobiles. In an earlier decision, another judge had ruled the trucks as motor vehicles.

The judge who found the non-log supported case to be credible also agreed with a previous judgment that CRA's interpretation of all or substantially all to mean in excess of 90% might be too limiting. Both of these judges found that 80%, and perhaps even less, might meet the test, leaving another avenue of appeal for vehicle owners who may wish to contest CRA reassessments.

Generally, a detailed log book of vehicle use is the best way to prove your case both with CRA and the tax court.

Should You Collect GST/HST on the Sale of a Vehicle?

When it comes time to sell your truck, the classification, as outlined above, as well as the ownership, dictate whether you should collect GST/HST on the sale price.

For motor vehicles: 

•  <= 50% No GST/HST collection

•  50% Collection on full sale price

For passenger vehicles (individual-owned):

• < 90% No GST/HST collection

• >= 90% Collection on full sale price

For passenger vehicles (corporate-owned):

• <= 50% No GST/HST collection

• 50% Collection on full sale price

- See more at: http://www.fbc.ca/knowledge-centre/change-cra-definition-extended-cab-pickup-passenger-vehicle#sthash.9VIpOmsx.dpuf

Did you know?

Financial literacy means having the knowledge, skills and confidence to make responsible financial decisions at any stage of your life. Everyone can benefit from improved financial literacy, a skill that is fundamental to the social, economic and physical well-being of Canadians. Gain the knowledge and confidence to make responsible financial decisions, from when you land your first job to after you retire. The Canada Revenue Agency (CRA) is proud to participate and to provide the following helpful planning tips.

Important facts

• 35% of Canadians do not have any savings or investments. (Source)
• Over 33% of Canadians find it difficult to keep up with their finances. (Source)
• The 2009 Economic Action Plan established the Task Force on Financial Literacy to better meet objectives for increased financial literacy amongst Canadians, appointing Jane Rooney as Canada’s first Financial Literacy Leader in April 2014.
• In 2013, more than 90 public, private and non-profit organizations held close to 400 workshops and other educational activities to help Canadians improve their financial knowledge and skills during Financial Literacy Month.
• There are a number of free resources and events available for Canadians throughout the month of November to help increase financial awareness and literacy.

Financial Literacy Tips

Save money by opening a Tax Free Savings Account (TFSA) — the TFSA allows Canadians, age 18 and over, to set money aside, tax-free, throughout their lifetime. Each calendar year, you can contribute up to the TFSA dollar limit for the year, plus any unused TFSA contribution room from the previous year, and the amount you withdrew the year before. The annual TFSA dollar limit for 2014 is $5,500. Investing 5-10% of your paycheck into a TFSA can help increase your future savings faster.Open and make regular contributions to a Registered Savings Plan (RSP) — an RSP allows you to save money long-term for:

• Your retirement — Registered Retirement Savings Plan (RRSP)/ Pooled Registered Pension Plan (PRPP))
• Your child’s education — Registered Education Savings Plan (RESP); or
• Disability — Registered Disability Savings Plan (RDSP).

Your contributions to your RRSP/PRPP can give you immediate tax benefits at a time when your income is generally highest and defers taxes to later years when your income is generally lower. The investment income earned in an RSP is not taxed until it is withdrawn allowing it to increase more quickly than it would outside of a RSP. The conditions vary for each savings plan, so learn which one is right for you.

Plan ahead — create a financial plan that includes a budget that keeps track of your income and expenses as well as specific financial goals you want to achieve. Tracking your day-to-day spending can help you identify where you are spending money without even realizing it, and where you can cut back expenses in favour of growing your savings. Include a payment schedule to track your long and short-term financial commitments to ensure that you are always meeting your obligations while maintaining your financial stability. Plan ahead. Be prepared for life’s milestones and curve balls.

Teach children financial literacy with our Tax Resources for Educators — whether they’re your students or your own children, you can start developing their financial literacy skills at a young age. Give your children the foundation they need to make responsible financial decisions throughout their lives by talking to them about money and saving. Have they recently started their first job or post secondary education? Consider helping them learn about their tax obligations and possible benefits with our easy to teach or self-taught programs.

Educate yourself about your financial options — do you know the CRA’s policy for tax corrections? Are you aware of the many types of benefits and credits you may be eligible for? How to create a comprehensive household budget? Taking the time to educate yourself about financial planning, assistance, and options is the best investment you can make for your financial future. Get educated with free financial literacy events this month. It pays to be well informed!

Be realistic — financial stability is measured on a long-term scale, not short-term, so ensure that your lifestyle is sustainable. Be well informed about what you can and can’t afford and live within your means. A suggested emergency savings fund for a household should be able to cover between 3 to 6 months of living expenses in case of unforeseen circumstances. Being realistic, consistent and honest will help prepare you for a more secure financial future.

Take action to solve your money problems — don’t be a victim of your financial situation. Know where you stand, the steps you need to take to get back on track and the options to help you achieve your goals. Not sure where to start? Don’t be afraid to ask for help. The CRA offers assistance in helping individuals plan tax payment options that work for them. Even making one small change is better than none at all — small change adds up.

With more customized options for saving, spending, borrowing and investing than ever before, the CRA is proud to support the Government of Canada’s initiative to help increase Canadians financial knowledge and take advantage of the many positive and long-term benefits of being financially literate. This month offers an opportunity for individuals and families across Canada to strengthen their financial literacy and management skills. There is no time like the present—investing in your financial future is one small investment that will pay off for the rest of your life.

Many people assume that if they fail to include an information slip with their income tax return, the Canada Revenue Agency ("CRA") will simply adjust the return to report the income and adjust the income tax accordingly.This is half correct!The other half of the equation is a little known penalty the CRA imposes for repeated failure to report income. This penalty arises when an income slip is not added in your tax return two times in a three year period.

Several years ago form T 1135 was added to our tax returns for individuals, corporations, partnerships and trusts. It is a simple form that has been often overlooked and non-compliance has been high. More than likely this has been because the form does not enter into the calculation of income tax payable.