Death of a family member is one of the most stressful events in life. To compound the grief, there are final tax matters to deal with either by April 30th of the following year or 6 months after the date of death.
Using QBO - QuickBooks Online More small-business owners are migrating from desktop accounting software to a cloud-based system. Cloud-based accounting software, such as QBO, allows the user access anywhere in the world. This ease of access, combined with the ability to download transactions from banks, vendors, credit card companies, etc., makes bookkeeping so straightforward now, pundits claim, that small businesses using cloud software no longer need bookkeepers. Unfortunately, as great as ... Read More
Foreign Asset Reporting Pitfalls for Canadian Holding Corporations and IndividualsCanadian taxpayers, individuals, and corporations who hold foreign property exceeding $100,000 in cost at any time during the year, have significant foreign asset reporting obligations. Not only is the reporting obligation an annual requirement, but the penalties for non-compliance can be very steep.
Foreign Asset Reporting ObligationsYour foreign asset reporting obligations are indicated on the ... Read More
The past year, I have noticed quite a few more requests from CRA to review medical expenses, donation receipts, and HST returns filed. The best thing for a business owner being audited is that they have been honest with their tax affairs. The second best thing is for the business owner to have a competent professional Vancouver accountant to assist them through the process. If the records are complete and accurate and the professional accountant has experience dealing with CRA, then the audit ... Read More
I am noticing the proliferation of hair salons in the Downtown Vancouver area and I can’t help but think that they are in for a challenging time. Retail commercial rent is sky high, escalating real estate price and cost of living in general has reduced the city's discretionary income pool, and as a consequence Vancouverites are relocating to the more affordable surrounding suburbs. To add to these challenges, the industry has little barriers to entry – it doesn't take a long time or a lot of ... Read More
One of my favorite parts of my university studies in the field of accounting was cost analysis and break-even analysis. When a B.C. business has been operating for a number of years and has been profitable, tax planning is always a priority and I am often not asked to improve the business. However, when a new client is a business that lacks profitability but still operating, tax planning is not the main priority. Instead, the focus shifts to determining if the business can ever be profitable, ... Read More
Just File Your Canadian Tax Return on Time! During the past year, I have noticed that Canadian Revenue Agency (CRA) is putting more pressure on Canadian corporations to file their corporate tax and HST returns on time. The tactics being used by CRA include constant reminder notices being sent soon after the filing deadline has passed as well as withholding HST and/or corporate tax refunds until all of the business' filings are current. As a Vancouver chartered accountant, I don’t mind the ... Read More
When an incorporated business in Vancouver calls asking for professional representation for a CRA audit, the first question I ask myself is “Why is the person who was paid to prepare the tax return not doing the representing?” A very common answer is something like “My wife who is not a professional accountant prepared the tax return. She does not have the knowledge to deal with the CRA.” However, this year, I received an unexpected answer: “My accountant has been charged with fraud." The ... Read More
In British Columbia, a service business with total sales of $200,000 or less, inclusive of HST, qualifies to use the Quick Method of remitting HST to Canada Revenue Agency (CRA). In general, the Quick Method allows a business that provides taxable services to collect the 12% HST as required under the Excise Tax Act but remit a lower rate to CRA. The trade off is that the business is not entitled to claim Input Tax Credit (ITC) on its expenses when remitting the HST collected. However, the ... Read More