Accounting, Bookkeeping, Income Tax Preparation, And Consulting Forum

The following is now available on the CRA Web site: Did you know… That you may be able to reduce your income tax by donating to registered charities? You can verify whether a charity is registered by searching for it in the Canada Revenue Agency (CRA) Charities Listings. In 2007, the federal tax credit for charitable donations is calculated as 15% of the first $200 of donations, plus 29% of the amount donated over $200. You may also be eligible for provincial or territorial tax credits based on the applicable provincial or territorial rates. You can claim donations made this [More]

Ottawa, February 5, 2008 2008-010 The Honourable Jim Flaherty, Minister of Finance, today introduced Bill C-41 in Parliament, which was unanimously adopted at all stages. Upon receiving Royal Assent, this legislation will allow $1 billion in federal funding to begin flowing to struggling communities through the Community Development Trust recently announced by Prime Minister Stephen Harper. “Vulnerable communities have made it clear that this funding will make a real and lasting difference in addressing economic hardship caused by a shifting global economic landscape,” said Minister Flaherty. “They have also expressed the need to receive this assistance in a timely fashion, [More]

The following is now available on the CRA Web site: News release Ottawa, Ontario, February 4, 2008… The Canada Revenue Agency (CRA) will provide service on its business enquiries telephone lines on two Saturdays, February 16, and 23, 2008, from 10:00 a.m. to 4:00 p.m. This extended service will assist employers who need help preparing T4 slips for employees. The CRA’s business enquiry telephone service operates year round with agent-assisted service available from Monday to Friday between 8:15 a.m. and 8:00 p.m. Automated service is available 24 hours a day, 7 days a week. The business enquiry telephone number is [More]

Did you know… That if you are a tradesperson (including an apprentice mechanic) you may be able to deduct part of your tool expenses? The tradesperson’s tools deduction provides employed tradespersons with an annual deduction of up to $500 to help cover the cost of new tools necessary to their trade. The deduction to be claimed on the 2007 tax return applies to the total cost of eligible tools in excess of $1,000 acquired by an employed tradesperson during 2007. For more information on the tradesperson’s tools deduction, visit http://www.cra.gc.ca/individuals and select “T” from the drop-down menu for “Tradesperson’s tools [More]

The following are now available on the CRA Web site: Did you know… That businesses with an eligible apprentice may be able to claim the apprenticeship job creation tax credit? This is a non-refundable tax credit equal to 10% of the eligible salaries and wages payable to eligible apprentices for employment after May 1, 2006. The maximum credit is $2,000 per year for each eligible apprentice. For more information about the credit, visit http://cra.gc.ca/individuals and select “A” from the drop-down menu for “Apprenticeship job creation tax credit.” SOURCE: Canada Newsroom

The following is now available on the CRA Web site: Did you know… That the Government of Ontario has created the Ontario Child Benefit (OCB) to help Ontario families with low or modest incomes to provide for their children? In July 2008, the OCB will provide up to $600 per child per year for each dependent child under the age of 18. It will be delivered monthly with the Canada Child Tax Benefit (CCTB). If your children are registered for the CCTB, you are automatically enrolled for the OCB, and you do not need to apply. If your children are [More]

The following is now available on the CRA Web site: News release Ottawa, Ontario, January 23, 2008… Gordon O’Connor, Minister of National Revenue, reminds Canadians that not complying with the tax laws will result in serious consequences. “Not paying your taxes is against the law,” said Minister O’Connor. “The Canada Revenue Agency works hard to identify and correct non-compliance. This keeps the system fair for the honest Canadians who comply with the tax laws.” 2006-2007, Canada Revenue Agency (CRA) criminal investigations led to convictions in 245 cases of tax evasion, or 98% of the files prosecuted. Courts imposed fines totalling [More]

The following is now available on the CRA Web site: Did you know… That February 29, 2008, is the deadline for making a contribution to a registered retirement savings plan (RRSP) for the 2007 tax year? (Not March 1st) With RRSPs, you can start saving now for your retirement, education, or the purchase of a home. To view your RRSP deduction limit and other personal income and benefit information, why not log on to My Account at www.cra.gc.ca/myaccount. Beginning in 2007, RRSP must mature before the end of the year in which the annuitant turns 71 years of age (previously [More]

The following News Release or Speech was posted on the Finance Canada Site. Ottawa, January 21, 2008 2008-005 The Honourable Jim Flaherty, Minister of Finance, today proposed to extend the carry-forward period for unused investment tax credits earned by Canadian businesses in the 1998 to 2005 taxation years to 20 taxation years from 10 taxation years. Corporations operating in Ontario will benefit from one tax return, one set of tax rules and one point of contact as a result of moving to a single corporate tax administration starting in the 2009 taxation year. However, the requirement for one set of [More]

The following is now available on the CRA Web site: Whether you are a hairdresser, a carpenter, a fisherman, a waiter or waitress, or anyone else who earns part or all of your income in cash, you should know that all of your income is taxable. The Canadian tax system is based on voluntary compliance and you are responsible for declaring all of your income regardless of whether it appears on a T4 slip. To ensure that all Canadians pay their share of taxes, the Canada Revenue Agency (CRA) conducts specific audits in areas where cash transactions are prevalent. The [More]

The following is now available on the CRA Web site: The Canada Revenue Agency (CRA) reminds Canadians that they must report all of their income. Individuals working in industries where cash transactions are prevalent must take extra care to accurately report their income and to maintain the documentation they need to support the income they report. The CRA continues to vigorously enforce the provisions of the tax laws to ensure that all Canadians pay their taxes. This provides a level playing field for all taxpayers and protects the social and economic well-being of all Canadians. The CRA can find unreported [More]

The following is now available on the CRA Web site: Ottawa, Ontario, January 21, 2008…The Canada Revenue Agency (CRA) wants to remind Canadians who earn tips and gratuities of the rules for reporting this income on their annual income tax returns. Restaurant servers, hairdressers, valets, taxi drivers and others who earn tips may not have all of their income recorded by the employer and therefore not included on their T4 slips. The Income Tax Act is clear regarding the treatment of income from tips and gratuities: all tips are taxable and it is your responsibility to report any you receive. [More]

The following Economy In Brief has just been posted on the Finance Canada Site. Overview * In the third quarter of 2007 real gross domestic product (GDP) grew 2.9%, down from a 3.8% pace in the second quarter. * Domestic demand growth remained solid. Real final domestic demand rose 4.6% compared to 4.9% in the second quarter. Business inventory accumulation was $15.4 billion after a smaller buildup of $4.5 billion in the second quarter. * Real imports grew more than real exports, moderating real GDP growth and narrowing the nominal trade surplus and the current account surplus (the amount that [More]

The following News Release or Speech has just been posted on the Finance Canada Site. Ottawa, January 14, 2008 2008-004 The Honourable Jim Flaherty, Minister of Finance, today launched online consultations, giving all Canadians an opportunity to provide input into the development of Budget 2008. This year, the Government is asking people to focus on specific issues and questions of national significance. “This year, we are taking a different approach to pre-budget consultations,” said Minister Flaherty. “Although our economic fundamentals are solid, we need to focus on the various risks and challenges that confront us. These include the impact of [More]

The following is now available on the CRA Web site: Did you know… That you could benefit from the new pension income splitting tax measure? When you and your spouse or common-law partner file your 2007 income tax returns, new tax rules allow eligible taxpayers to allocate up to half of their eligible pension income (income that qualifies for the pension income tax credit) to their lower-earning spouse or common-law partner. To make this election, you and your spouse or common-law partner must each complete Form T1032, Joint election to split pension income. For more information on pension income splitting, [More]

The following is now available on the CRA Web site: Ottawa, Ontario, January 8, 2008… You cannot avoid paying the taxes you owe by not filing a tax return, or by not reporting all of your income. The Canada Revenue Agency (CRA) uses a variety of tools to identify non-compliance and take action to address mistakes or tax cheating. The CRA is committed to promoting the integrity of the tax system through a number of compliance activities. In 2006-2007, the CRA: * Identified a total dollar value of non-compliance of about $12.7 billion, including almost $4.9 billion for international and [More]

The following is available on the Canada News Site Begin the New Year with a clean slate and a clear conscience! Ottawa, Ontario, January 3, 2008… Did you fail to file an accurate tax return or not file at all, but should have? The Canada Revenue Agency’s (CRA) Voluntary Disclosures Program may be able to help. The program allows people to come forward and correct their tax information and avoid being penalized, criminally investigated and prosecuted. Last year the CRA processed 8,244 disclosures for taxpayers who used the Voluntary Disclosures Program and got a second chance to comply with their [More]

The following is available on the Canada News Site … Image and Article Source: Canada Newsroom Conservative government fulfills commitment to reduce GST to 5% 31 December 2007 Mississauga, ON Prime Minister Stephen Harper today announced that starting tomorrow, January 1, 2008, the Goods and Services Tax will fall by another percentage point. As a result, from now on Canadians will pay only five per cent GST. The Prime Minister, flanked by federal Finance Minister Jim Flaherty, made the announcement at the same Mississauga consumer electronics store where he originally promised to cut the GST during the 2005-06 election campaign. [More]

The following News Release or Speech has just been posted on the Finance Canada Site Ottawa, December 28, 2007 2007-112 Canadian families, students, workers, seniors, and businesses large and small will continue to keep more of their hard-earned money in 2007 and 2008 thanks to substantial new tax reduction measures introduced in 2007 by the Government of Canada. Since coming to office in 2006, the Government has taken action that will by 2012-13, reduce the overall tax burden for Canadians and businesses by about $200 billion, to its lowest level in nearly 50 years. “Since coming to office, we have [More]

The following news was released on the Canada News site … December 20, 2007 Ottawa – Canada Post wishes to advise Canadians that advertisements recently published in various newspapers and on the Internet, offering employment opportunities with the corporation, are fraudulent. An investigation by Canada Post’s Security and Investigation Services has revealed that these fraudulent ads direct applicants to a “Mystery Shopping Application Form” where unsuspecting individuals are asked to complete the form and provide personal information. The form suggests that the employer is Canada Post and displays Canada Post’s corporate trade-mark logo. It is believed that the advertisements are [More]

The following was released on the Canada News Site .. OTTAWA, ONTARIO, December 21, 2007 Human Resources and Social Development Canada today announced the latest benefit rates for the Canada Pension Plan (CPP) and Old Age Security (OAS). Canadians already receiving CPP benefits as of December 2007 will get an increase of 2.0 percent on January 1, 2008. Canada Pension Plan benefits are adjusted once a year, in January. Increases are based on changes over a 12-month period in the Consumer Price Index, which is the cost-of-living measure used by Statistics Canada. OAS includes the Guaranteed Income Supplement (GIS) and [More]

The following is now available on the CRA Web site: Fact Sheet Each year, certain personal income tax amounts are indexed to inflation using the Consumer Price Index data, as reported by Statistics Canada. Increases to tax bracket thresholds, personal amounts and other amounts relating to non-refundable credits, as well as the refundable medical expense supplement and Old Age Security repayment threshold, will take effect as of January 1, 2008. Increases to the Canada Child Tax Benefit (including the National Child Benefit supplement and the Child Disability Benefit) and the Goods and Services Tax Credit will take effect as of [More]

The following News Release or Speech has just been posted on the Finance Canada Site. Ottawa, December 14, 2007 2007-101 The Honourable Jim Flaherty, Minister of Finance, today announced that Bill C-28—the final 2007 budget implementation bill—has received Royal Assent, providing further tax relief for individuals, families and businesses. This bill enacts into law measures included in Budget 2007 and the 2007 Economic Statement. “Our government is establishing a proud legacy of tax relief for all Canadians,” said Minister Flaherty. “Since coming to office nearly two years ago, we have reduced the overall tax burden by about $190 billion, bringing [More]

The following News Release or Speech has just been posted on the Finance Canada Site December 14, 2007 2007-100 The Honourable Jim Flaherty, Minister of Finance, today announced that, as a result of Bill S-2 having received Royal Assent, Canada has now completed the steps required in this country to give effect to the fifth Protocol to the Canada-United States Income Tax Convention. The Protocol will come into effect once it has been ratified by the United States and the two countries have formally notified each other that their procedures are complete. “Modernizing this long-standing treaty will encourage further trade [More]

The following is now available on the CRA Web site: News release Ottawa, Ontario, December 7, 2007… 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 are calculated quarterly in accordance with applicable legislation and will be in effect from January 1, 2008, to March 31, 2008. Income tax * The interest rate charged on overdue taxes, Canada Pension Plan contributions, and Employment Insurance Premiums will be 8%. * The interest rate paid on [More]

Last week (Monday November 26, 2007) .. I sent via our Canada Post (parcel Post) a VHS video to a friend in England. He received it Friday, November 30, 2007 delivered to his door. Isn’t that amazing? You were probably wondering that you might want to support our troops overseas by wishing them a Merry Christmas or Seasons Greeting message, but it probably wouldn’t be delivered in time. Not so! There is still lots of time! In fact … ….. The following has been posted on the Canada News Website….. NR–07.103 – December 4, 2007 OTTAWA — Canadians have indicated [More]

The following is available online .. No. H 227/07 For release – November 30, 2007 OTTAWA — The Government of Canada is proposing an amendment to the Motor Vehicle Safety Regulations (MVSR) to clarify and make it easier for Canadians to import vehicles from the United States built as of September 1, 2007, which are already equipped with an electronic immobilization system or can be fitted with one. The proposed amendment will be published in the Canada Gazette Part I on December 1, 2007. It would modify section 12 of the Motor Vehicle Safety Regulations as it pertains to importing [More]

News Release Ottawa, Ontario, November 29, 2007…The Canada Revenue Agency (CRA) has issued a Notice of Suspension to International Charity Association Network (ICAN), a registered charity under the Income Tax Act (ITA), stating that it has been suspended for one year beginning on November 28, 2007. As stated in the Notice of Suspension: “It continues to be the Canada Revenue Agency’s (the “CRA”) view that the International Charity Association Network (ICAN) is in contravention of subsections 230(2), 231.1(1) and 231.2(1) of the Income Tax Act (the “ITA”) by failing to maintain and/or provide, and failing to provide access to, books [More]

The following is now available on the CRA Web site Alert The Canada Revenue Agency (CRA) is finding an increasing number of questionable Registered Retirement Savings Plan (RRSP) and Registered Retirement Income Fund (RRIF) tax-free withdrawal schemes. The CRA is warning that investing in such schemes could result in you losing your entire retirement savings to unscrupulous promoters and in a reassessment of your tax returns. Stats and Facts * To date, the CRA has reassessed over 3,100 taxpayers who participated in these schemes resulting in additional taxable income of approximately $144 million. * Audits of another 1,800 taxpayers with [More]

Canada's Environment Minister, John Baird, today issued the following statement on the release of the United Nations Development Program's Report 2007/2008 - Climate Change and Human Development. The annual report outlines a human development index, ranking most of the world's countries on health, educational and economic indicators. This year Canada is ranked in fourth place, a climb up from last year's sixth place.

The Daily is Statistics Canada's official release bulletin, the Agency's first line of communication with the media and the public

WASHINGTON, D.C. — The Honourable Lawrence Cannon, Canada's Minister of Transport, Infrastructure and Communities, and Mary E. Peters, Secretary of Transportation at the U.S. Department of Transportation, are pleased to announce the completion of the Great Lakes St. Lawrence Seaway Study (GLSLS).

Jennifer Stoddart, the Privacy Commissioner of Canada, appeared on the CBS News program "60 Minutes" last night to provide information on her investigation into the extensive loss of personal information by at TJX, a U.S. retailer that operates stores under the names T.J. Maxx, Marshalls, Winners and HomeSense.