Approx. 30% of Answers CRA Gave to Taxpayers Are Wrong

Auditor-General Michael Ferguson found that approx. 30% of answers CRA gave to taxpayers are wrong.

In addition,  the CRA actively blocked calls from taxpayers so that it could say it met its service standard of keeping people waiting no more than two minutes. There were 29 million calls it blocked between March, 2016, and March, 2017 – more than half of its total call volume [53.5 million]. Those calls either get a busy signal, a message to visit the agency’s website or a message to call back later.

National Revenue Minister Diane Lebouthillier said the government agrees with the Auditor-General, adding that Ottawa has invested $50-million over four years to improve service at the CRA’s call centres.

Refer Global and Mail for detail.

https://www.theglobeandmail.com/news/politics/cra-blocks-calls-often-gives-taxpayers-wrong-information-auditor-says/article37036667/

Intermediate Staff Accountant

We are a public accounting firm in mid-town Toronto providing a wide range of accounting, management, consulting and tax services that are reflective of the unique needs of small to medium size businesses in a wide variety of industries. We also service the unique issues faced by larger enterprises and public companies.

 

We are currently looking for a full-time intermediate staff accountant, who is passionate about client service, accounting, corporate and personal tax preparation, to join and grow with the firm.

 

Responsibilities

  • Independently complete (from start to finish) working papers and financial statements for mostly “Review” and “Notice to Reader” engagements of various sizes
  • Prepare corporate, personal and trust tax returns
  • Assist with and/or prepare annual T5/T4/T3 slips
  • Various income tax and accounting projects, as the need arises
  • Occasional travel to client offices, if and when required
  • Build effective relationships with clients
  • Respond and followup to client and CRA requests
  • Ad hoc duties as assigned
  • Monitor, coach and review junior staff, if and when required
  • Identify internal processes and file improvements for future assignments and share ideas with other staff members

Requirements

  • Minimum of 2-3 years experience in a Canadian Public Accounting Firm
  • CPA designation (CA , CGA or CMA) is an asset, but not required.
  • Proficient in Microsoft Word and Excel, Case Ware and Taxprep
  • Familiarity with Quick books and other accounting system
  • Excellent verbal and written communication skills
  • Strong interpersonal skills
  • Strong commitment to quality
  • Strong file management and organization skills
  • Understanding of business professionalism and an ability to work independently and as part of team

Salary:

Based on qualification and experience

Apply:

Please email resume and cover letter in confidence with approximate salary expectation level to tli.cpa.ca@gmail.com. We thank all candidates who apply, however, only those selected for a personal interview will be contacted.

Automobile allowance rates

The automobile allowance rates for 2016 are:

  • 54¢ per kilometre for the first 5,000 kilometres driven; and
  • 48¢ per kilometre driven after that.

In the Northwest Territories, Yukon, and Nunavut, there is an additional 4¢ per kilometre allowed for travel.

The automobile allowance rates for 2015 are:

  • 55¢ per kilometre for the first 5,000 kilometres driven; and
  • 49¢ per kilometre driven after that.

In the Northwest Territories, Yukon, and Nunavut, there is an additional 4¢ per kilometre allowed for travel.

The automobile allowance rates for 2013 and 2014 are:

  • 54¢ per kilometre for the first 5,000 kilometres driven; and
  • 48¢ per kilometre driven after that.

In the Northwest Territories, Yukon, and Nunavut, there is an additional 4¢ per kilometre allowed for travel.

The automobile allowance rates for 2012 are:

  • 53¢ per kilometre for the first 5,000 kilometres driven; and
  • 47¢ per kilometre driven after that.

In the Northwest Territories, Yukon, and Nunavut, there is an additional 4¢ per kilometre allowed for travel.

The automobile allowance rates for 2010 and 2011 are:

  • 52¢ per kilometre for the first 5,000 kilometres driven; and
  • 46¢ per kilometre driven after that.

In the Northwest Territories, Yukon, and Nunavut, there is an additional 4¢ per kilometre allowed for travel.

A NEW REFUNDABLE TAX CREDIT – School Supply Tax Credit

Teacher and Early Childhood Educator School Supply Tax Credit

Budget 2016 proposes to introduce a teacher and early childhood educator school supply tax credit for 2016 and subsequent taxation years. This measure will allow an employee who is an eligible educator to claim a 15% refundable tax credit based on an amount of up to $1,000 of purchases of eligible teaching supplies by the employee in a taxation year.

This measure has received Royal Assent. Eligible educators, regardless of their income level, who purchase educational materials, will qualify for a refund of up to $150 each year.

WHO IS AN ELIGIBLE TEACHER OR EARLY CHILDHOOD EDUCATOR?

The new tax credit can only be claimed by an eligible teacher or early childhood educator employed at an elementary or secondary school or a regulated child care facility:

  • An eligible teacher holds a teacher’s certificate that is valid in the province or territory in which they are employed.
  • An eligible early childhood educator holds a certificate or diploma in early childhood education that is recognized in the province or territory in which the individual is employed.

WHAT IS AN ELIGIBLE SUPPLIES EXPENSE?

An eligible supplies expense is an amount paid in the year by an eligible teacher or early childhood educator for teaching supplies that are:

  • purchased by the teacher or educator for teaching or facilitating learning, and directly consumed or used in an elementary or secondary school or in a regulated child care facility in the performance of the teacher or educator’s duties of employment;
  • 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.

WHAT KINDS OF TEACHING SUPPLIES ARE ELIGIBLE?

To be an eligible supplies expense, the teaching supplies must be purchased in the taxation year, by an eligible teacher or early childhood educator to use in a school or in a regulated child care facility for the purpose of teaching or helping students learn.

Teaching supplies include consumable goods. Some examples are:

  • Construction paper for activities, flashcards for activity centres;
  • Items for science experiments, such as seeds, potting soil, vinegar, baking soda and stir sticks;
  • Art supplies such as paper, glue and paint; and
  • Various stationary items, such as pens, pencils, posters and charts.

And the only durable goods that qualify as teaching supplies are listed below:

  • games and puzzles;
  • books for the classroom;
  • containers such as plastic boxes or banker boxes; and
  • educational support software.

IS COMPUTER, TABLET OR RUG (FOR KIDS TO SIT ON) AN ELIGIBLE EXPENSE?

Computers, tablets and rugs are not eligible expenses because they are durable goods (which can be used repeatedly or continuously for a relatively long time) that are not included in the above list of durable goods that qualify as teaching supplies.

THE YEAR OF WHICH THE TAX CREDIT CAN BE CLAIMED MUST BE THE YEAR IN WHICH THE SUPPLIES WERE PURCHASED

The expense is included in calculating the tax credit for the taxation year in which the supplies were purchased. E.g. if supplies are purchased in December 2016, but used in the school or facility in the following calendar year, 2017,  it should be deducted in 2016 as the tax credit is calculated based on when the supplies were purchased.

EXPENSE THAT IS NOT PURCHASED IN THE YEAR IS NOT ELIGIBLE

A teaching supply has to be purchased in the same year that it is included in calculating the tax credit, and must have been purchased for the purpose of teaching or facilitating students’ learning.

If  you brought some used books, games and puzzles from home for the children to use in the classroom. You can’t claim either a part of the original cost or current value.

DOCUMENTS  TO SUPPORT THE CLAIM

If you claim this tax credit, the CRA may ask you to provide a certification from your employer (or a delegated official of the 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.

WHAT WOULD HAPPEN IF I CAN’T PROVIDE THE EVIDENCE WHEN THE CRA REQUESTS IT

If the CRA requests that you provide certification from your employer and you do not provide it, even if you can provide receipts for the purchases, your claim for the tax credit will be denied.

Employer Guide for the Teacher and Early Childhood Educator School Supply Tax Credit

Please contact our office if you need a copy of the employer guide.

How Business Makes Tax Payment Through Online Banking?

Online banking is the easiest way for businesses to pay their bills. However, despite all major Canadian banks offering tax payment/filing services, paying business tax bills is not as obvious as paying regular bills, like your cellphone, internet, utilities and etc.. Because banks separate this functionality from normal “Pay Bills” functions. The “Pay Bills” function provided by banks only support paying individual tax bills, not business taxes.

I have often been asked by clients about how to make tax bills through their online banking. The following is a list of the resources I found from three major Canadian bankers. Hope these information can help and ease your tax payment processes.

Bank of Montreal: Tax Payment Services Guide

Bank of Nova Scotia: Tax Payment Services Guide

RBC: Tax Payment Services Guide

I can’t locate the information from TD and CIBC. If you happened to know them. Please post here.

About Me:

Tao Li is a dedicated and experienced Chartered Professional Accountant and Chartered Account providing tax and accounting services in Toronto. With over 10 years of accounting and tax experience, my objective is to provide you insightful and timely advice with a high level of integrity, quality and professionalism.

About the Firm:

Based in Toronto, Tao Li CPA Professional Corporation is a full service accounting firm committed to provide a comprehensive range of services to entrepreneur, professionals, small to mid-sized corporations and not-for-profit organizations. Our services include bookkeeping, payroll, GST/HST, corporate tax preparation, financial statements compilation, business registration, management accounting and budgeting, business planning, financial forecasts and projections.

 

Stephen Harper announced the new imcome-splitting benefit for Canadian families

The federal government has introduced a new income-splitting benefit for couples with children under the age of 18 as part of a series of proposed new tax measures designed to appeal to young families.

The proposal consists of three new measures, including the Family Tax Cut, which will allow a higher earning spouse to transfer up to $50,000 of taxable income to a spouse in a lower income bracket. The measure will provide eligible families with a maximum of $2,000 a year in tax relief.

The Universal Child Care Benefit for children under the age of 6 will also be increased from $100 to $160. A well, a new benefit of $60 per month is being created for children aged six to 17, and will come into effect on Jan 1.

The third new measure will see a $1,000 increase in the maximum amount that can be claimed under the Child Care Expense Deduction.

Prime Minister Stephen Harper announced the new measures Thursday afternoon at a community centre in Vaughan, Ont., just north of Toronto.

Read more: http://www.ctvnews.ca/politics/income-splitting-among-new-tax-breaks-aimed-at-families-1.2079559#ixzz3HfGynQCB

Is your non-profit organization (NPO), charity or public institution federally incorporated under the Canada Corporations Act?

If so, you need to apply for a Certificate of Continuance by October 17, 2014, in order to transition to the Canada Not-for-profit Corporations Act (NFP Act). NPOs, charities and public institutions that are currently incorporated under Part II of the Canada Corporations Act need to apply for a certificate of continuance under the new NFP Act by October 17, 2014.

After that date, NPOs, charities and public institutions that have not continued will have their corporate status dissolved by Corporations Canada. Once an NPO, charity or public institution’s corporate status is dissolved, it ceases to exist as a legal entity. Where the corporation is a registered charity, the Canada Revenue Agency (CRA) will take steps to revoke the charity’s registration under the Income Tax Act. In addition, as a result of a change in legal status, an NPO, charity or public institution’s GST/HST registration status will change and the tax status of supplies and entitlements to recover GST/HST paid on purchases and expenses could change.

For more information on the transition to the new NFP Act for charities and public institutions, go to Transition to the Canada Not-for-profit Corporations Act (NFP Act) on the CRA website For information for NPOs, go to Industry Canada’s Transition Guide found on Industry Canada’s website at www.ic.gc.ca.

Small Business will receive incentive on hiring in 2015 and 2016 – Small Business Job Credit

On September 17, 2014, the Government announced the introduction of the Small Business Job Credit to recognize the important contribution that small businesses across the country make to job creation and economic growth.

The Small Business Job Credit will apply to Employment Insurance (EI) premiums paid by small businesses in 2015 and 2016. The credit will be calculated as the difference between premiums paid at the legislated rate of $1.88 per $100 of insurable earnings and the reduced small business rate of $1.60 per $100 of insurable earnings in each of those years. Since employers pay 1.4 times the legislated rate, this 28-cent reduction in the legislated rate is equivalent to a reduction of 39 cents per $100 of insurable earnings in EI premiums paid by small employers. The 39-cent premium reduction will apply in addition to the premium reduction related to Quebec’s parental insurance plan, the Québec Parental Insurance Plan.

Any firm that pays employer EI premiums equal to or less than $15,000 in 2015 and/or 2016 will be eligible for the credit in those years.

As an example, a small business employing 14 employees, each earning $40,000, would ordinarily pay about $14,740 in EI premiums in 2015. However, since the total EI premiums paid by the employer are less than $15,000, it would be eligible under the Small Business Job Credit for a refund of about $2,200, which is the difference between employer premiums paid at the legislated rate versus the premiums calculated under the reduced small business rate ($12,540).

Businesses will not have to apply. The Small Business Job Credit will be automatically administered by the Canada Revenue Agency, which will determine eligibility and calculate the amount of the credit. Once calculated, the credit will be applied against any outstanding debt and then the remaining amount, if any, will be refunded to the small business.

This measure is expected to save small employers more than $550 million over 2015 and 2016. For detail please go to CRA website: http://www.cra-arc.gc.ca/whtsnw/tms/sbjc-eng.html.

 

 

Lottery prize commissions are taxable since Jan 1, 2014

Lottery prize commissions

Lottery ticket retailers who sell winning tickets must include in their income the amount or value of any prize commissions they received from a provincial lottery corporation on or after January 1, 2014. For more information, see Lottery prize commissions.

For years, the Canada Revenue Agency (CRA) held the position that any commission or prize received by lottery ticket retailers from a provincial lottery corporation for selling a winning ticket was not taxable. This position was outlined in Interpretation Bulletin IT 404R, Payments to Lottery Ticket Vendors.

Repeated concerns over the years about the fairness of this position prompted the CRA to review it. Concerns centred on the fact that generally, as explained in Interpretation Bulletin IT-334R2, Miscellaneous Receipts, prizes or commissions a taxpayer may receive from carrying on a business are indeed taxable. Upon review, the CRA concluded that treating prizes paid to lottery ticket retailers as non-taxable led to inconsistent treatment between taxpayers. As a result, the CRA cancelled Interpretation Bulletin IT-404R on December 31, 2013.