Carmela Pirillo Accounting
80 Milloy Place L4G 7L3 Aurora, ON, Canada

800,000 accounts locked! If your account was affected, you will be receiving a letter in the mail. There is no word yet on how or if this will affect the tax filing deadlines this year.... https://globalnews.ca/ne/7693382/cra-800k-locked-accounts/

If you're business is incorporated, this article highlights the areas where things can go wrong on your tax filing. Google is a wealth of information but it can't replace the knowledge, experience and professional judgement of a licensed CPA.

The CRA has locked hundreds of taxpayers accounts. Could this mean a possible extension to your tax filing deadline? https://www.google.com//na/canada/2021/2/17/1_5312854.html

NEWS ALERT! As reported by The Star moments ago, the Federal government has cancelled CERB clawbacks for self-employed recipients as a result of the confusion back in December 2020. https://www.thestar.com//government-cancels-cerb-clawbacks... https://www.canada.ca//government-of-canada-announces-targ

RRSP or TFSA? Only 3 weeks left to decide! There are 5 factors to consider when deciding. Tax bracket - lower tax brackets do not see the same benefits from RRSP contributions.... Timeline - how long can the funds be invested for depends on whether you will need the money for education, home etc. Debt level - does it make sense to invest rather than pay down your debt? Group plans - does your employer match RRSP contributions? Retirement - what do you expect your tax bracket to be when you retire? Every situation is different so speak with your accountant and financial advisor to get the best advice for you! Deadline for RRSP contributions is March 1, 2021.

The tax FILING deadline for Canadians is April 30, 2021 for individuals and June 15, 2021 for sole proprietors. Tax payments are due April 30, 2021 regardless of your filing deadline. Penalties for late FILING are as follows: 5% of balance due plus 1% for each full month that it is late. This can be significant if you are a year or more behind. More information on the link below.... If you need help getting your taxes filed on time or caught up to date quickly and accurately, please message me. https://www.thebalancesmb.com/what-happens-if-you-dont-file

Applications are now open for the Ontario Small Business Support Grant. https://www.ontario.ca//businesses-get-help-covid-19-costs You will need your April 2019 and your April 2020 revenues. If you weren't in business in April 2019, you can use an alternate period as described during the application process.

NEW! COVID-19 Business Relief Program The Ontario government announced that the ONTARIO SMALL BUSINESS SUPPORT GRANT will be available to businesses who have been affected by the December 26, 2020 lockdown. A grant of up to $20,000 will be given to businesses that can show a revenue decline of at least 20% when comparing April 2019 to April 2020 revenues. If you weren't in business in April 2019 then alternate criteria will be introduced for you sometime this month.... Eligibility: you were required to shut down or significantly restrict your business activity on December 26, 2020 you have less than 100 employees your April 2020 revenues are at least 20% less than your April 2019 revenues The article goes on to note that businesses that had been affected prior to the December 26, 2020 lockdown are not eligible. More details to follow as the Ontario government provides further guidance on the application process. https://www.ontario.ca//businesses-get-help-covid-19-costs

We knew this was coming. CRA has admitted their error and will be working with individuals on a case by case basis. In those cases where an honest mistake was made, no penalties or interest are expected to be levied.

NEW! Work from home tax credit If you worked from home more than 50% of the time over 4 consecutive weeks, you are eligible for a tax credit on your 2020 personal income tax return. Two methods are available to calculate the credit. Full details on the CRA website. ... https://www.canada.ca//work-space-home-e/what-changes.html

Amazon Year End Inventory Report This is for sellers who are not using a third party inventory app such as Seller Board or Inventory Lab. If you haven't already done so, you will want to download an inventory report of the items and quantities available for sale on December 31, 2020 (sole proprietors) or your fiscal year end date (corporations). ... For simplicity sake, let's use a sole proprietor business. Remember to add the following to your report: items that you have purchased in 2020 but have not yet received, items that were on the way to an Amazon warehouse as of December 31, 2020 but not checked in until 2021. Reporting inventory accurately is crucial to determining whether you have had a profitable year and it also keeps you on the right side of CRA!

Your 2020 Friday Funny!

Did you get the CERB letter? This article mentions a quick and easy fix to get around the CERB eligibility criteria if you are self employed and have been asked to repay some or all the benefits you received. What is the fix? Filing an adjustment to your 2019 income tax return to reduce or eliminate the business expenses in order to increase your net income before tax. ... While this sounds easy, adjustments attract attention AND this could be considered retroactive tax planning which is not accepted by CRA. This will almost certainly result in an audit. Contact me if you need help determining what your best solution is.

One of my clients brought this to my attention last week. Second year in a row! THANK YOU to my clients who have put their trust in me and to those who support my business in many other ways.

NEW Rent Subsidy Program More businesses that have been affected by COVID-19 can now qualify for assistance with their monthly rent. Highlights of the revised program:... business owners can apply directly and do not have to wait for landlords to do so on their behalf businesses do not have to show revenue loss of at least 70% the rent subsidy will be available on a sliding scale which is dependent on the actual revenue loss the new rent subsidy does not apply retroactively to April 2020 businesses that have had to shutdown completely such as restaurants, gyms etc. will be eligible for additional rent assistance Details on the application process to be announced.

One of my clients brought this to my attention last week. Second year in a row! THANK YOU to my clients who have put their trust in me and to those who support my business in many other ways.

Canada Emergency Response Benefit (CERB) ends October 3, 2020. New benefits will help transition you from CERB to one of the following: Canada Recovery Benefit... Canada Recovery Sickness Benefit Canada Recovery Caregiving Benefit Conditions apply.

This post is for all the Canadian online businesses that are selling across Canada including Amazon sellers. I have created a short sales tax guide that will help you determine if you need to charge sales tax, when to charge it and how to register for a sales tax account. In 2019 Quebec changed their sales tax criteria and more changes are happening in 2020 for other provinces. This guide helps you stay on top of those changes.... FREE to download with this link. http://bit.ly/ecommercesalestaxguide

CEBA Update! If your business could use some financial aid, you have until October 31, 2020 to apply for the Canada Emergency Business Account (CEBA). It is a $40,000 interest free loan and you have until December 31, 2022 to repay it. The government will forgive $10,000 if repaid by the due date.... There are two ways you can apply. 1. Payroll option 2. Non-deferrable expenses option. Ask your accountant which one is best for your business.

Remember when Walmart purchased the Woolworth chain of stores? Woolco, as it was called here in Canada. That was THE go to department store with affordable pricing. Well, Walmart is set to take on the biggest ecommerce marketplace. AMAZON.

Helpful tips if you are thinking of adding an online store for your business.

CRA NEWS ALERT CRA shuts down online services after it was hit with cyber attacks. Many online services are temporarily suspended "until further notice".... https://www.cbc.ca//canada-revenue-agency-cra-cyberattack-

THREE reasons why your business may be losing money. cluttered and disorganized accounting poor customer service that results in bad reviews little or no online presence - customers can't buy from you if they can't find you

Tax and Compliance for eCommerce Although tax and compliance can be daunting when faced with one set of rules, eCommerce tax and compliance can be very complicated to navigate because there are many factors at play. Depending on where your business is and where your customers are, you can be faced with different tax rules from around the world. Imagine that!... It really boils down to one thing though. "The best way to manage the complexity of global tax and compliance requirements is to bring the right people to the table early in your go-to-market strategy development process." Ensure that your tax professional is an expert in the eCommerce space and keeps up to date on changes that can affect your business. https://www.digitalriver.com/tax-compliance-critical-glob/

Quick tips if you're thinking of starting an online store for your existing brick and mortar business. Although your store may have hundreds of SKUs, pick a handful of the most popular products and start your online store with those for now. If you fixate on all the products at one time, you will never start. Publish products without descriptions if necessary. Again, don't get stuck on details in the beginning.... Images are crucial to making that sale. The price and description help but if you have a poor quality image that doesn't show the product in it's best light, that sale won't happen. It's exciting to add a new dimension to your existing business but make sure you take the necessary steps to do it right and to do it now. Waiting too long can effect the financial state of your business. https://www.practicalecommerce.com/the-first-steps-in-addin

Shopify News We all shop online and I'm sure I'm not alone when I say that I shopped exclusively online during the pandemic lockdown. Many of my ecommerce clients thrived and still post record sales for 2020. Shopify now makes it easier and will certainly give Amazon a run for their money. This new app allows the consumer to search online retailers and purchase their favorite goods. It also gives you tracking and shipping updates. ... Whether we like it or not. Whether we agree with it or not. Much like the touch screen phone that I so adamantly avoided buying, eCommerce is the future. Don't allow your business to be a thing of the past. Be part of the future and pivot. https://ecommerceguide.com/news/shopify-launches-shop/