Newsletter - April 2012

Well we are in the midst of yet another busy tax season. I just wanted to take a moment to give you guys some information. 

When you are keeping receipts for business expenses it is very important that you keep your detailed receipt, not just the debit or credit receipt. Especially gas and meals receipts! When the CRA is looking at your receipts they are trying to determine the validity of your expenses, so they need to see what you are spending your money on in addition to where you are spending it. In the case of meal receipts, there

are some rules. The only way that you can write off your own meals is if you are working more than 8 hours away from home. IF you are not working 8 hours away from home, then the only way you can write off a portion of your meals is if you are meeting with someone you do business with. You will need to record their name, as well as what the nature of the meeting was about. It is not a bad idea to either keep a diary of this, or record the information directly on the back of the receipts. We have seen many auditors disallow meals with alcohol purchases, alcohol is seldom deductible. If you are having drinks, get them on a separate bill.

 

If you are not one of the people who loaned the government money all year, and got nothing for it (i.e. you received a refund), there are a few different ways to pay your taxes.  All personal income taxes are due to be paid by April 30th, after that date you will be charged interest. So you can pick up a T7dra form from us, or the harry hays office, and use that form to pay at your bank. If you have received your notice of assessment before the end of April you can use that form to pay at your bank.  You can make a payment directly at the Calgary tax services office (harry hays building). You can make a payment online thru the CRA’s mypayments site, or you can pay online thru your financial institution.  If you’re a going to pay by cheque, you must put your social insurance number and 2011 personal tax in the memo. However you decide to pay, GET A RECEIPT!!

 In the interest of protecting your information, we will be switching to using an encrypted email service this year. When you ask us to send your tax returns, you will first receive an email with a password, you will then get an email with a link from which you can download your information with that password.

 We have been given some guidelines for purchasing vehicles with a cost of over $30,000. If you are looking at purchasing a company vehicle and it is going to cost more than $30,000, the only way for the company to be allowed to claim the entire amount (through either lease payments or depreciation), is for it to meet several criteria. First of all your business usage must be more than 50% (this does not include driving from your home to your office), and your personal kilometers are less than 1,677 per month. Also the vehicle cannot seat more than 3 people, unless you have to move people or equipment inside the cab of your vehicle as a condition of your employment, or you have equipment or large tool boxes mounted in the back. Even if these criteria are met, it can be at the CRA’s discretion to disallow the vehicle, if they determine it to be a luxury item.  If your vehicle usage is less than 50%, and your company pays for your vehicle, a stand by charge will have to be assessed. That equals roughly 24% of the original purchase price of the vehicle being added to your income each year.

 Beginning May 21, 2012 and running until October 1, 2012 our business hours will be: Tues to Friday 8:30 am to 5:00 pm, we will close from 12:00 to 1:15 for lunch every day. As always we do book appointments outside of business hours, just give our friendly receptionist a call. We will be closed every Monday.

 As some of you may be aware, Barry has been in the hospital for several months following complications from his diabetes. He did end up having to have his left leg amputated just below the knee, but is doing remarkably well. He has been learning to walk with his prosthetic, and is supposed to be out of the hospital by the beginning of May. I know he looks forward to coming back to work, and seeing all of our clients. Thank you very much for all the heartfelt wishes.

 Tax planning for next year – A website some of our staff members use to make donations is www.canadahelps.org. They support a variety of charitable groups and with many of the organizations you can set it up to make monthly donations if you want. You can even send someone an e-gift card that they can use to make the donations of their choice.

 

The best thing you can do when it comes to either personal or corporate tax is to remember to pay and file on time. We have been told repeatedly by CRA Auditors that people who have delinquent accounts are penalized at a higher rate. 

 

If you are contacted by CRA, and they want to audit some of your paperwork, please either contact us, or if you are more comfortable, have the CRA contact us directly. We have experience dealing with the government and can quite often get things resolved more quickly.

 

Important tax filing deadlines for you to keep in mind:

 -          Personal Tax for T4’d persons’ is due April 30th

-          Person with self-employment income (sole proprietor), due June 15, you will pay interest on any amount owing beginning April 30th. It is in your best interest to file by April 30th if you owe.

-          U.S Nonresident tax filing deadline for tax on pensions, investment or real estate income is June 15th.

-          GST quarterly files have 30 days from the end of their specific quarter. Annual files have 90 days from the end of their annual GST period. Please provide us with your government issued forms.

-          T5018 slips for subcontractors need to be filed by anyone in the construction industry, and they need to be filed with your corporate tax.

-          T4, T4A, T5’s need to be filed by February 28th

-          WCB annual returns need to be filed by February 28th

-          Payroll remittance to be received by CRA by the 15th of the following month i.e. your March payroll remittance must be received by the government by the 15th of April. We recommend making your payments between the 2nd and 12th day of the month to ensure it is processed correctly. You can make this payment online through your banks website.

-          Corporate tax returns are due 6 months after your yearend date if you have not made any profit. If your company is profitable then you only have 3 months to file. If you are profitable and do not file within the 3 month time frame, you will be subject to interest and penalties.

 

Omni Business Hours

Monday
08:00 - 17:00
Tuesday
08:00 - 17:00
Wednesday
08:00 - 17:00
Thursday
08:00 - 17:00
Friday
08:00 - 17:00
Saturday
Closed
Sunday
Closed

Personal Tax

At Omni Management we have over 20 years of experience in filing all levels of personal income tax. We have personal income tax clients from all across Canada, as well as into the United States. Our diversified staff members each bring important knowledge to the table, and I am sure that we will be able to take care of all your personal tax filing needs.

Corporate Tax & GST

We consider ourselves to be small business specialists, after all, we are a small business too! Our knowledge of corporate tax, bundled with our corporate registry services really makes us the complete package for the small business owner. We make every effort to maintain an excellent relationship with the Canada Revenue Agency, and therefore stay abreast of any changes or trends in the corporate tax world.

 

Bookkeeping

If you find that you are to busy working your business to handle your paperwork, or you just plain hate doing it (like most people), we can help. We offer a variety of bookkeeping services, and can even go onto your site, whatever is going to be easiest for you. We go to many seminars and workshops throughout the year in order to experience the newest accounting software packages available. We would rather work with your system than try and convert you to ours. We also offer payroll services at very competitive rates. Give us a call and we will design something to meet your needs.

Corporate Registry Services

Omni Management Services Ltd. Is one of the few accounting office to offer corporate registry services. We will help you get your business up and running, and can be there for you to maintain your registration with the province. We find that having knowledge of both the corporate registry rules and provisions and the tax act puts us miles ahead of your corner registry service. If you are thinking about starting a business, please come talk to us first.