Newsletter - July 2012

It is an exciting time, 100th anniversary of the stampede, and the oil patch is picking up speed, looks like we may be in for another wild ride this summer. So let’s take a minute, find some shade, and think about our taxes.

There is a bill being put forward right now that will make it law that all personal and corporate federal tax returns must be filed electronically. As you all know, we cannot electronically file your personal tax returns

without signed consent forms and these forms must match your tax return as it is filed. We are working with CRA right now, in hopes of finding a way that we can get your signature when you drop your taxes off. However, if that does not come about it will be very important for you to bring your taxes in as soon as you have all your information, as well as make sure we have an email address for you so we can email the consent forms. If we do not have signed consent by the filing deadline our options will be to hold your returns back until you sign your forms, or to file them by paper, which will generate a $25 penalty on personal tax, and $100 for corporate. We will keep you updated with what CRA is going to allow us to do.

 Something else we are going to talk about today is taxable benefits. A taxable benefit is something that an employer provides that you get personal benefit out of, over and above its necessity to your job. Here are some examples:

 -          A lot of companies will offer the use of a company vehicle. Many of you are not aware that, if you take that vehicle home at night, a taxable benefit based on the value of the vehicle is added to your T4 at the end of the year. This can cause you to owe additional tax when you go to file in the spring. In most cases you would be far better off to use your own vehicle and charge your employer mileage.

 -          If you employ a live in nanny, then you must include in their taxable income an amount for room and board. So if you were paying them a salary of $1500 per month, and the value of their room and board was deemed to be $350 per month, then their monthly taxable income would be $1850. This is the amount you would then use to calculate how much income tax, CPP, and EIC to remit to the government. We can help you with those calculations.

 -          Many companies who have an office downtown will give their employees a monthly parking pass. Believe it or not, the value of that pass is taxable in your hands and should be included in your T4.

 -          People who own their own corporations will sometimes pay for personal items with the corporations’ bank or credit cards. These things have to be added back, and they then have to pay personal tax on them. So if your company buys you a really cute pair of shoes, guess what, you are now paying personal tax on those shoes. In this scenario, it is best to keep the personal money and corporate money as separate as possible.

 With the activity in the oil patch picking up, and some people having more disposable income we always see an increase in multi-level marketing “opportunities”. It is VERY important for you to do your homework before getting drawn into any of these things. It is always very attractive to have someone come and tell you that you work too hard, and should be spending more of your time on leisure activities and with family. All you have to do is give them a cheque and they will double (or sometimes more) your money. You can just sit back and wait to go to the bank. Unfortunately these “opportunities” have been around for 100’s of years. You work hard for your money, and there is no reason to just give it to someone else. When you are looking at any of these “opportunities”, ask yourself “where does the profit come from?” Is there actually a product you are selling, something that has a physical value, or is your money going to come straight from signing up 5 friends. Don’t get me wrong, there are some legitimate business’ out there that you can make extra money at, but only through hard work.  There is no (legal) way to make easy money. If something sounds too good to be true, it generally is.

 

Those of you, who have your own corporations, may have heard about being able to deduct the expenses for your shareholders meetings. This is an area currently under scrutiny by CRA. Here are some things to keep in mind:

 -          Your shareholders meeting will only be deductible if conducted in your province of incorporation.

 -          Only shareholders may attend (can’t bring wife and kids if they are not shareholders)

 -          Only travel and room expenses are considered, meals & alcohol are not deductible.

 -          You must have minutes of your shareholders meeting that you can reproduce if CRA asks to see them, and they should be kept in your minute book.

 -          If you choose not to have an annual shareholders meeting, you must fill out a resolution (you can get a blank from us) as there are things that need to be confirmed and decided each year, and this too should be kept in your minute book.

  We are also part way through the year, so it is the perfect time to make sure you are on track to reach your RRSP, TFSA, and donation goals before the end of the year. You can always call our office to get your rrsp limit for the year, but it is best to speak with a financial advisor about your overall picture. If you want to make monthly charitable donations, an easy site to use is www.canadahelps.org. Also, remember if you receive old age security, and have other income, you may be forced to repay some or your entire pension. If you call us, we can give you the amounts that trigger what the government refers to as the claw back of your pension.

 One last note that we just heard about in regards to making payments to the government. I know that in the past I have been close to the deadline making payments to CRA, and not had time to pay online, as most bank take 2 to 3 business days to process these payments. In the past I would just run downtown and pay directly at the Harry Hays building. We have been told that the payment window in the Calgary tax services office (Harry Hays) will be closing effective October 1, 2013. So we all need to start training ourselves now to leave time for those online payments to be processed.

 Have a great summer everyone, you’ll hear from me again in October!

 

 

 

 

 

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.