MVO Chartered Professional Accountants
424 7th Street South, Suite 200 T1J2G6 Lethbridge, AB, Canada

Covid - 19 updates

Great new clients who receive this benefit

https://www.fin.gc.ca/n18/18-125-eng.asp

What are your obligations? You are responsible for deducting and remitting non-resident tax if you are: a Canadian resident who pays or credits certain types of income to a non-resident of Canada an agent or someone who receives certain types of income on behalf of a non-resident of Canada, from which tax was not withheld... a non-resident of Canada who receives certain types of income from a Canadian source, from which tax was not withheld Failing to deduct and remit non-resident tax on these payments may result in penalties and interest. Open a non-resident tax account! It’s now easy and convenient to open a non-resident tax account! Our new online registration tool simplifies the process of getting an account so you can deduct and remit the correct amount of non-resident tax. You can access the new registration tool and open a non-resident tax account through any of the Canada Revenue Agency (CRA) online portals, including: My Account My Business Account Represent a Client Who is a non-resident? A non-resident is someone who: normally, customarily, or routinely lives in another country and is not considered a resident of Canada; or does not have significant residential ties in Canada; and lives outside of Canada throughout the tax year; or stays in Canada for less than 183 days in the fiscal year. Common types of income subject to non-resident tax The most common types of income subject to non-resident tax are: Pension plan and Old Age Security (OAS) payments Registered Retirement Savings Plan (RRSP) and Registered Retirement Income Fund (RRIF) payments Rental and royalty payments Annuity payments Trust payments Dividend payments

http://www.cbc.ca//politics/tax-evasion-banks-cra-1.4209208

Need an easy way to keep track of your kilometers for your business, trying Mile IQ https://www.mileiq.com//bl/mileiq-canada-mileage-tracking/ Download it from your app store and get tracking!!

From the CRA website today Notice Service temporarily unavailable Ensuring that your personal information is not compromised is a priority for us. Upon becoming aware of an internet vulnerability that affects some computer servers used by websites worldwide, we took down our online services, including electronic filing, and are taking steps to ensure that all information and systems remain safe.... At this time, we are not aware that any personal information has been affected; however, we continue to assess and remedy the situation. You can still complete your tax forms, but will have to wait before filing. We are working to bring our online services back up as soon as possible. Updates will be posted as they become available. Thank you for your patience. See more

Needs ideas on how to keep track of business mileage. Tracking by paper is just too much work? Try this app on your phone or tablet.

Tax Filers beware

Just one of the many changes this year

Lethbridge Police Warning Residents of Local Tax Scam #YQL

We have 4 FREE flames tickets for tonights game against Buffalo Sabres. If you want them, call Lori at 403-328-8383 right away. They're first come first serve!!

We have 4 tickets to tonight's Flames games to give away. You want them, call Lori at office 403-328-8383 Don't wait, there they will go quickly!!

Harper Government cracks down on international tax evasion and aggressive tax avoidance with launch of Electronic Funds Transfer Initiative January 7, 2015 - Ottawa, Ontario - Canada Revenue Agency The Honourable Kerry-Lynne D. Findlay, P.C., Q.C., M.P., Minister of National Revenue, today announced the launch of the Canada Revenue Agency’s (CRA) Electronic Funds Transfer (EFT) initiative, introduced in Economic Action Plan 2013 as one of several new measures to crack down on...Continue reading

Beware of telephone and email scams Ottawa, Ontario, March 7, 2014... The Canada Revenue Agency (CRA) warns all taxpayers to beware of telephone calls or emails that claim to be from the CRA but are not. These are phishing and other fraudulent scams that could result in identity and financial theft. People should be especially aware of phishing scams asking for information such as credit card, bank account, and passport numbers. The CRA would never ask for this type informati...Continue reading

Things Merv does when he is not working in the office. LOL!!

Check this out!!! Really great news for some Canadians!!

CRA update regarding the Heartbleed Bug - Thursday, April 10, 3pm After learning of the security vulnerability posed by the Heartbleed bug, the Canada Revenue Agency (CRA) took preventative measures and removed public access to its online services in order to protect the confidentiality of the taxpayer information it holds. Applications affected include online services like EFILE, NETFILE, My Account, My Business Account and Represent a Client. The CRA continues to work on re...solving the issue. In keeping with industry practice, we are currently implementing a solution, or patch, for the bug, and are vigorously testing all systems to ensure they will be safe and secure once the site is re-launched. The Minister of National Revenue has also confirmed that interest and penalties will not be applied to individual taxpayers filing their 2013 tax returns after April 30, 2014 for a period equal to the length of this service interruption. The Agency appreciates the cooperation and patience of the public and our business and taxpayer representative communities. We remain committed to maintaining the confidence of Canadians by taking all steps necessary to ensure the security of taxpayer information.We will continue to provide further information and daily updates at 3PM EDT on our home page.

Minister Shea highlights new tax credit for volunteer firefighters Fort McMurray, Alberta, September 14, 2011... The Honourable Gail Shea, Minister of National Revenue, accompanied by Brian Jean, Member of Parliament for Fort McMurray-Athabasca, visited on September 12, the Saprae Creek Fire Hall in Fort McMurray to discuss a new non-refundable tax credit for volunteer firefighters which was passed in the 2011 federal budget. "Every day in Canada, almost 85,000 brave men and ...women are ready to put their own lives at risk to protect the lives and property of their friends, neighbours, and even perfect strangers. Our Government recognizes these efforts and is proud to have introduced the Volunteer Firefighter Tax Credit," said Minister Shea. "Volunteer firefighters are fundamental to the safety of our communities and highways, such as Highway 63. I am delighted that our government is acknowledging the work of these courageous Canadians by offering this new credit" said Brian Jean. The non-refundable tax credit is available to any volunteer firefighter who serves at least 200 hours per year at one or more fire departments beginning on January 1, 2011. Services that make up those 200 hours include responding to and being on call for firefighting and other emergencies, attending meetings at the fire department, and taking courses in preventing and putting out fires. When an eligible firefighter claims the credit, they can reduce income taxes they have paid or will owe at tax time by as much as $450. "This credit is one of several measures announced in Budget 2011 that will help Canadians and their families to keep hard-earned dollars in their pockets. I encourage all volunteer firefighters to learn more about the credit and to claim it when they file their 2011 income tax and benefit returns," added Minister Shea. For more information about the volunteer firefighter's tax credit, go to www.cra.gc.ca/firefighter.

Minister Shea highlights new tax credit for parents Edmonton, Alberta, September 14, 2011 ... The Honourable Gail Shea, Minister of National Revenue, accompanied by Laurie Hawn, Member of Parliament for Edmonton Centre, yesterday visited the Edmonton Children's Dance Theatre to promote the children’s arts tax credit, a new non-refundable credit passed this year in the 2011 federal budget. Parents whose children participate in paid artistic, cultural, recreational, and develo...pmental programs will now enjoy the same benefit as parents whose children participate in paid programs of physical activity. Our Government believes whether a child is inspired by Karen Kain, Justin Bieber, Michael J. Fox or Kurt Browning, parents should receive a tax credit to help pay for the programs that will help their children live out those dreams, said Minister Shea. This tax credit is a wonderful opportunity for our kids to benefit from more artistic programs and activities. I am proud of our government’s commitment to foster arts in Canada, added Laurie Hawn. In addition to fitness programs covered by the children’s fitness tax credit, parents can now claim money spent on programs that focus on fine arts, music, performing arts, outdoor wilderness training, learning a language, studying a culture, tutoring, and more. When parents claim the children’s arts tax creditup to a maximum of $500 of the cost of programsthey save as much as $75 at tax time per child claimed.

Canada Revenue Agency announces maximum pensionable earnings for 2012 Ottawa, Ontario, November 1, 2011 The Canada Revenue Agency announced today that the maximum pensionable earnings under the Canada Pension Plan (CPP) for 2012 will be $50,100up from $48,300 in 2011. The new ceiling was calculated according to a CPP legislated formula that takes into account the growth in average weekly wages and salaries in Canada. Contributors who earn more than $50,100 in 2012 are not ...required or permitted to make additional contributions to the CPP. The basic exemption amount for 2012 remains $3,500. Individuals who earn less than that amount do not need to contribute to the CPP. The employee and employer contribution rates for 2012 will remain unchanged at 4.95%, and the self-employed contribution rate will remain unchanged at 9.9%. The maximum employer and employee contribution to the plan for 2012 will be $2,306.70, and the maximum self-employed contribution will be $4,613.40. The maximums in 2011 were $2,217.60 and $4,435.20. -30-

Just about everyone is familiar with the concept of a mortgage. Money is borrowed, usually from a bank or other financial institution, in order to purchase a home. That money (now known as mortgage principal), plus interest, is paid back, usually over the next couple of decades, until the home is owned free and clear. While reverse mortgages have been available for some time inCanada(and even longer in theU.S.), most Canadians aren’t that familiar with them. However, revers...e mortgages are being widely promoted to the baby boomers and, for a variety of reasons, are likely to gain greater traction in the Canadian marketplace in the next few years. A number of circumstances have combined to make many Canadian retirees, in effect, house-rich and cash- or savings-poor. Fewer and fewer Canadians are members of employer-sponsored pension plans and consequently fewer and fewer Canadians can look forward to receiving monthly payments from such a pension plan throughout retirement. Fewer still will have access to the gold standard of pension plansa defined benefit plan which is indexed to inflation. Retirees and near-retirees who aren’t members of pension plans but have saved diligently for retirement through vehicles like registered retirement savings plans have likely seen the value of their portfolios slashed in recent years as the result of stock market declines and financial crises. Even those who invested more conservatively, in GICs or government bonds, haven’t actually lost money but have for several years been receiving a virtual pittance in terms of interest returns on those investments. For both groups, the likely result is that the retirement nest egg which they had counted on to provide them with a steady source of retirement income is much smaller than they had anticipated. Finally, especially over the past year, inflation has made purchases of both food and energycompletely non-discretionary expenditures for every Canadianmore and more expensive. Over the past five or ten years, it seems that the only kind of asset which has steadily continued to increase in value is residential real estate. Most Canadians spend a good portion of their working lives paying off their mortgages, with the goal of being mortgage-free at retirement. Once the mortgage is paid off, the value of the mortgage-free home usually makes up a significant portion, if not the majority, of the homeowner’s overall net worth. For homes which were purchased decades ago, particularly those located in large urban centers like Toronto or Vancouver, the increase in value since the original purchase can amount to more than half a million or even a million dollars.

cont....Finally, where employees are between the ages of 65 and 70, but have not yet begun to receive CPP retirement benefits, there is no change to the requirement that the employer deduct, remit and match CPP contributions for those employees. The rules for employees over the age of 70 have also not changed: there is no obligation on the employer’s part to deduct or remit CPP contributions for those employees, regardless of their circumstances. The changes to the CPP contri...bution rules will undoubtedly make payroll deductions with respect to CPP more complex. The Canada Revenue Agency has, however, posted information on its Web site to help employers with the transition, and that information can be found at http://www.servicecanada.gc.ca//cpp/postrt/employers.shtml and at http://www.cra-arc.gc.ca///clctng/cpp-rpc/cppchng-eng.html. The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation. See more

Upcoming changes to Canada Pension Plan rules for employers (October 2011) The Canada Pension Plan (CPP) is a cornerstone ofCanada’s retirement income structure. The Plan is financed by way of contributions made during the working life of each Canadian, and the amount of CPP retirement pension received is calculated using an actuarial formula based on those contributions. While the CPP is well-funded and on a sound financial footing, the demands made on the Plan over the next...Continue reading

This is to remind all VIVINT clients with Sept 30, 2011 year ends, to begin to gather your bookkeeping and drop it off to our office as soon as possible. If you need checklists, please email Lori Ledyit at [email protected]

The indexing factor for federal tax credits and brackets for 2011 is 1.4%. Income level Federal tax rate $10,527- $41,544 15.0% $40,545 - $83,088 22.0% $83,089 - $128,800 26.0%... Above $128,800 29.0% There is no change in federal individual tax rates for 2011. See more

The Canada Pension Plan contribution rate for 2011 is unchanged at 4.95% of pensionable earnings for the year. The maximum pensionable earnings for the year will be $ 48,300, and the basic exemption is unchanged at $3,500. The maximum employer and employee contribution for 2011 will therefore be $2,217.60, and the maximum self-employed contribution will be $4,435.20.

The general federal corporate tax rate and the rate applied to income from manufacturing and processing will be reduced from 18.00% to 16.50%, effective January 1, 2011. The small business tax rate remains at 11.0% and the federal small business limit is unchanged at $500,000. The general corporate tax rate change will be pro-rated for corporations having non-calendar-year year-ends.