The Ontario government is expanding the Support for Learners program to include secondary school students. Starting January 11, 2021, students aged 13 through Grade 12 will be eligible for funding under an expanded Support for Learners program. Parents or guardians will receive a one-time payment of $200 per eligible student to help offset education expenses. Support will be available for those who attend a public or private school or who are homeschooled.
The deadline to apply is February 8, 2021. Please go to Ontario government website tp apply. https://www.ontario.ca/page/get-support-learners
New Ontario Small Business Support Grant to Provide up to $20,000 for Eligible Businesses
December 21, 2020: The government is announcing the new Ontario Small Business Support Grant, which will provide a minimum of $10,000 and up to $20,000 to help small business owners during this challenging period. Further details, including how to apply for the Ontario Small Business Support Grant, will be announced in January 2021 https://news.ontario.ca/en/backgrounder/59788/post-4
British Columbians are now able to apply for the BC Recovery Benefit
December 18. 2020: British Columbians are now able to apply for the BC Recovery Benefit — a one-time, tax-free payment of up to $1,000 for eligible families and single parents, and up to $500 for eligible individuals. For more information and how to apply, please visit BC government website: https://www2.gov.bc.ca/gov/content/economic-recovery/recovery-benefit
Toronto City Council approves an implementation plan for a tax on vacant homes in Toronto starting 2022.
December 16, 2020: City Council approves an implementation plan for a tax on vacant homes in Toronto starting 2022. https://toronto.ca/news/city-council-approves-an-implementation-plan-for-a-tax-on-vacant-homes-in-toronto/…
The maximum pensionable earnings under the CPP for 2021 will increase to $61,600.
The CRA has announced the CPP contribution limits for the upcoming year. The maximum pensionable earnings under the Canada Pension Plan (CPP) for 2021 will increase to $61,600 (from $58,700). In addition, the employee and employer contribution rates for 2021 are set to rise to 5.45% (up from 5.25%) and the self-employed contribution rate will increase to 10.9% (from 10.5%).
The basic exemption amount for 2021 remains at $3,500.
The maximum employer and employee contribution to the plan for 2021 will be $3,166.45 each and the maximum self-employed contribution will be $6,332.90. The maximums in 2020 were $2,898.00 and $5,796.00.
Under section 160, a transferee of property may be assessed for the tax liability of the transferor to the extent that the FMV of the transferred property exceeds the FMV of the consideration given for the property.
In recent case Brown v. Queen (2020 TCC 45), a transfer between spouses not attract the application of section 160 because the spouse accepting the transfer will give full consideration in the form of assuming a corresponding obligation to pay the expenses of the transferring spouse. That intention should be reinforced with written documentation, appropriate documentary evidence, supplemented by accounting showing that the obligation was properly discharged.
For more detail please subscribe our newsletter to receive the full article in Dec 2020.
Please use our FREE spreadsheet to help calculate your CEWS and track your records
ACCOUNTING FOR BRAVERY
A heartfelt thank-you to all frontline healthcare workers for the courage and commitment you have shown since the beginning of the COVID-19 crisis. While we cannot be on the frontlines with you, Chartered Professional Accountants across Ontario want to do what we can to help.
Help with your Taxes
As a small token of our appreciation, CPAs across the province want to contribute their professional expertise to help prepare frontline healthcare workers’ 2019 taxes. In keeping with social distancing guidelines, there will be no face-to-face meetings – CPAs will receive all documentation electronically.
This program is available to nurses, paramedics, lab technicians, doctors, cleaners, and other healthcare staff on the frontline during COVID-19, who do not have an existing business relationship with a CPA. Because we want to help as many frontline workers as we can, the program will cover basic individual, spousal and dependent children’s tax returns. Please note the program does not include more complex tax returns, such as those involving self-employment income or employment expenses, business or rental income and expenses or foreign property (T1135).
To ensure all returns will be ready in time to the meet the June 1 filing deadline, the program will be accepting applications until May 15, 2020.
Please click on the CPA ONTARIO link below and fill out a short intake form. A CPA ONTARIO intake coordinator will be in touch within 72 hours.
Finally the new compilation standard CSRS 4200 will be out in February 2020. The AASB (Accounting and Assurance Standard Board) approved a new standard on compilation engagements in October 2019, to be issued in February 2020. The new standard takes effect for compiled financial information for periods ending on or after December 14, 2021, with early application permitted. Its impact could be significant, practitioners will have to start work in 2020 to ensure successful implementation.
The AASB recognized that Section 9200, Compilation Engagements, was outdated. The new standard, Canadian Standard on Related Services (CSRS) 4200, Compilation Engagements, will replace Section 9200 and Assurance and Related Service Guideline (AuG) 5, Compilation Engagements – Financial Statement Disclosures. It provides a suite of requirements and guidance for accepting, conducting, and reporting on compilation engagements.
The following are the major improvement designed to respond to stakeholder input and public interest issues per the AASB:
- A scope clarifies what services are compilation engagements. The new standard clarifies that a bookkeeping service may result in system-generated financial information. Such information is excluded from the scope of the standard if no communication is included or attached to it.
- Specific engagement acceptance considerations that apply when the compiled financial information is intended to be used by a third party. Practitioners may not accept or continue the engagement when the basis of accounting to be applied in the preparation of the financial information is not general purpose financial reporting framework unless the third party can meet one of the following conditions:
(a) The third party is in a position to request and obtain further information from the entity; or
(b) The third party has agreed with management the basis of accounting to be applied in the preparation of the financial information.
- Establish minimum work effort and documentation requirements: refer paragraph 27 to 33 for in the draft for detail.
- The new compilation engagement report that is more informative and insightful than the current Notice to Reader. It requires that compiled financial information must include a note describing the basis of accounting that was applied.
You can read the draft standard which can be downloaded at here to learn more detail. The AASB will be publishing the standard, guidance and examples in 2020, so stay tuned.