Veronica Xue CPA Inc.
837 W Hastings St #206 V6C 3N9 Vancouver, BC, Canada

Small and medium enterprises have found their opportunities out of the COVID-19 challenge The local enterprises have been struggling since the beginning of the year, especially the small and medium enterprises(SMEs), who are the major clients of our firm. As the cornerstone of the development of the national economy, SMEs have been playing vital roles. Employment in the BC district experienced fluctuation due to the COVID. The unemployment rate in the BC district reached ...a peak of 13.4% during May, and approximately 4,800 jobs for young people disappeared within July and August(globalnews). The main reason for this fluctuation was not only layoffs of workers in the big firms but also SMEs' weakened capability bearing decreasing profit margins. The Canadian government has been introducing benefits to provide financial support to small businesses at this point. One example would be the extension of the Canada Emergency Wage Subsidy until June 2021, which helps the businesses to keep their current employees on the payroll while encouraging the re-hiring of their workers. Nevertheless, the decline of economic activity created a limitation on the expansion and operation of SMEs to an extensive degree. Few enterprises were closed to ensure that they reduce the risk to the lowest point. However, while some enterprises regarded the pandemic as a challenge, others might transform the issue into opportunities. COVID-19 pandemic affected the majority of our clients negatively, but at the same time, we are seeing a lot of them looking for the right set of circumstances. One of our clients, a firm that was running a hotel business has been cooperating with BC housing and provides quarantine services. Also, adaptation to the virtual working environment has become a new standard valuing capability of the enterprises. SMEs that are adaptable to offer goods and services online would find more ways to survive in the market, relatively compared to enterprises that did not. For instance, our clients who are catering companies are now available for online food ordering, and they have been focused more on food delivery services. See more

Happy Halloween Mask has become an everyday necessity for our outdoor activities. It is mandatory to wear masks in indoor places such as restaurants, supermarkets, shopping malls, and even in taxis. Canada has been striving to recover from the COVID-19 in the past few months. However, the second peak reached this month due to returning to work and resuming daily activities, and this brought communities' attention to the second wave of COVID-19.... We are all aware of the importance of wearing a mask. One way the coronavirus spread is through droplet transmission occurs when the infected person sneeze, talking, cough, or breath heavily. When we are talking to people who have exposed to the virus, it is essential to find a way to protect ourselves. Mask is not only for medical professionals but for every one of us who are seeking an effective way of protecting ourselves. The most convenient method of doing protection is wearing a mask. Understandably, many people dislike wearing a mask for multiple reasons. A good example would be our principal Veronica Xue, who disfavored the idea of wearing a facial mask at the beginning. However, now she’s a big fan of wearing a fabric one when she discovered some benefits of wearing a mask, such as keeping your facial skin moisturized and sun blocked more effectively than applying moisturizer and or sunscreen. A big thanks to our client, a craft and fine artist Lana Lambert, who has designed her easy-washing fabric face masks with pop-art elements. She is providing safety to their customers in a way that enlightens the oppressive mood caused by the pandemic. She has donated several colorful designed masks to Union Gospel Mission. We all love the Halloween design masks (see the pic below) that are lovely and fun to wear, Christmas and New Year design is coming out soon.

Have you tried online grocery shopping to avoid the crowds and lineups during this pandemic? What if there was another way to shop that allowed you to browse openly in the supermarket while still avoiding contact with others? The latest developments in AI are Smart Carts, grocery carts that include their own scanner so customers can scan items and weigh them before placing them in the cart. The appeal is evident shoppers are in full control of how long a shopping trip takes... them while avoiding any unnecessary contact with the cashiers. The Smart Cart also gives access to the cost of the items as they pile up which is a great way to keep within your budget. This trend of seamless purchasing is being made popular with Amazon with their Amazon Go Grocery, as well as Walmart, where you can use the My Walmart app to scan products as you shop and pay via smartphone. Other AI projects include technologies that alert employees when to open additional checkout lanes or restock produce depending on the ripeness. Will AI supermarkets be the new future of shopping? Source: Nineteen Eighty Fork, Charlene Rooke for Pivot Magazine, July/Aug 2020

Extortion scams are on the rise in the midst of this #pandemic as schemers are using the nature of such a situation to create fear and anxiety. Between March 6th and April 23 during the nationwide lockdown, the #Canadian Anti-Fraud Centre (CAFC) logged 643 fraud reports and 158 confirmed victims (Pivot Magazine, 2020). The fear surrounding the current pandemic has created an opportune time for scammers to get creative. Websites promising free masks, testing kits, miracle cure...s, and cleaning supplies are amongst the most popular scams and people everywhere are falling for them. One extortion scam targeted the Chinese-Canadian community and successfully conned a victim out of $60,000, the largest known loss to coronavirus-related fraud, according to Jeffrey Thomson of the CAFC (Pivot Magazine). Although the numbers are scary, it is fairly easy to avoid these scams by recognizing the warning signs. Be suspicious of unsolicited messages, links via text or email, and websites that are claiming to be part of the government. And if you do get scammed, be sure to collect all the details to help spread awareness and prevent it from happening to another Canadian. Source: Fear Factor, by Sinead Mulhern for Pivot Magazine July/Aug 2020 Edition.

The ‘phigital generation’ refers to the typical gen-Zer, an individual whose identity and sense of self exists in both a physical and digital world. This unique characteristic of this generation is presumed to bring changes into the work field. Gen-Zers are known to be independent and comfortable with competition, with self-reliant traits and a need for validation. Formal education isn’t as important anymore; the goal of scoring a well earning job can come in a multitude of w...ays which is made plausible by idols they view on social media platforms. And in a world filled with unprecedented changes, this way of entrepreneurial thinking may be the key to surviving. However, introducing gen-Zers to a workplace may posit some challenges due to the inherent nature of this generation. The disadvantage to their close relationship with technology creates a shorter attention span and a negative psychological impact on self-esteem. It may be easier to connect with friends across media platforms, but it coincidentally operates as a way to see what you are missing out on. In this sense, gen-Zers’ seek reassurance, recognition, and confirmation more than others they want to know what they're doing is truly enough. How self-reliant is the typical gen-Zer then? The answer varies. For some, cognitive abilities may clash with emotional troubles, but this generation of multitasking, technology wizards seems promising. Source: The Phigital Generation, Barcelo, Yan for CPA Magazine, October 2017 edition.

An important #CRA update: The 2019 deadline for individual #tax returns and 2019 or 2020 corporation, or trust returns along with instalment payments are being extended until Sept 1, 2020 to Sept 30, 2020. Additionally, no late-filing penalties will be charged as long as it is filed by September 30, 2020. For more information and a broader scope of the announcement, please visit https://www.canada.ca///covid-19-filing-payment-dates.html. It is helpful to bookmark the page as it is regularly updated in regards to current news.

Some good news for senior residents of BC a one time tax-free payment for seniors during the coronavirus pandemic will be delivered this week. The payment will be delivered directly to the individual that qualifies for it. In other news...the federal government fiscal response to the COVID-19 pandemic has become an exceedingly substantial amount. Wage subsidies, emergency benefits, and loans to business are just a few of the subsidies the federal government has rolled out... to directly support individuals in these unprecedented times. So far, the support far exceeds $150 billion and is predicted to go up $260 billion by this year, which is nearly fives times larger than the $56 billion deficit during the financial crisis in 2009. So how is Canada going to repay this debt? There seems to be a few options; according to Trevor Tombe of Maclean’s Magazine, we are able to sustain this debt for some time afterwards if nothing is done and return to pre-COVID levels of debt-to-GDP within two decades. If something is done, such as returning to seven per cent GST, we can predictably return to pre-COVID levels within roughly a decade. Another considerable option would be a COVID Debt Repayment Fund which would appear next to the GST on receipts and labelled to recognize the one-time nature of COVID-costs. This would make the plans for repayment clear and explicit. What do you think Canada should do in regards to the COVID-related debt? Source: Trevor Tombe for Maclean’s Magazine June 8th 2020. https://www.macleans.ca//why-canada-might-need-a-temporar/

Have you received a suspicious email, phone call, letter or text message posing as the CRA? #Tax #fraud is on the rise as more ways for criminals to pose as the #CRA are becoming relevant as more individuals are waiting for their EI and CERB payments. CRA Canada has released an article outlining the ways to identify scams and protect yourself from fraud. Common causes of fraudulent communication involve insisting personal information and using threatening or coercive language... to scare individuals into paying debt to the CRA. If you are unsure of whether you are being scammed, take notice of the following warning signs: the CRA will NEVER use text messages or instant messaging platforms to communicate with taxpayers under any circumstance. If you receive a text message from the ‘CRA’ with a link to ‘deposit your payment’, it is a scam! Never provide your personal information through the internet or by email. The CRA will never ask you to provide your passport, health card, or driver’s license. If you are still unsure of whether a request from the CRA is fraudulent, do not hesitate to call our office <604.689.8995>. We take all concerns seriously and are more than happy to help you with any suspicious messages you may receive. For more information on how to recognize a scam and what to do if you are scammed, visit https://www.canada.ca//security/protect-yourself-against-f Have a safe Canada Day!

The Canada Emergency Response Benefit (CERB) has help numerous Canadians in these unprecedented times, but another worry that may arise is the amount of tax CRA can take from this benefit. So what exactly is the tax rate on CERB? It depends on your total earnings in 2020. To estimate where you stand in terms of this, you need to add your CERB payments to any income that you receive in 2020. For example, if you made $50,000 in 2020 and received a total of $8,000 in CERB payments, you will fall under two different federal and provincial tax brackets. There are some other things to consider in order to make a more accurate calculation, such as tax credits or deductions like RRSP. Source: https://ca.finance.yahoo.com//much-cra-tax-cerb-191535534.

#CERB payments have been a tremendous help to eligible #Canadians and continues to be so as it gets extended for another 8 weeks. Prime Minister #Justin #Trudeau has announced today that the #Canada #Emergency Response Benefit (CERB) will be extended for 8 weeks to help individuals who still can’t work or can’t find a job due to the current circumstances. There won’t be any further restrictions but applicants who would like the extension must sign an attestation saying they are actively looking for work. In regards to travel, Trudeau announced an agreement with the U.S. to extend non-essential travel restrictions between countries until July 21. Source: https://ca.finance.yahoo.com//cerb-extended-eight-weeks-15

Yesterday, the #federal #government introduced Bill C-17, an act respecting additional #COVID-19 measures. The focus of the bill is on Canada Emergency Response Benefit (CERB), as well as some Canada Emergency Wage Subsidy (CEWS) related issues. Some amendments which are highlighted in the proposed legislation concerning the #CERB rules include: individuals who are experiencing short-term loss of employment, quarantine themselves, or caring for someone with COVID-19 are allowed to make a claim for a two-week period rather than four-week period. Eligibility requirement are tightened individuals who fail to return to work after an employer requests their return or fails to resume self-employment will not be eligible for benefits. CEWS amendments can be found on https://www.cpacanada.ca//p/2020/march/cra-covid19-updates

The #federal government has compiled a summary of #COVID-19 tax issues, some of which are new issues as well as highlighting any developments with current issues. In this booklet type summary, the #CRA has summarized feedback received and communicated by the federal government. They have also added a phone number for #CERB and #CEWS related #questions (1-833-966-2099) and an updated CERB FAQ section. For a link to the summary, visit https://www.cpacanada.ca//p/2020/march/cra-covid19-updates

#CRA Canada has released some new information regarding tax deadlines and changes due to the #COVID-19 #pandemic. Now, in addition to the interest and penalty relief for 2019, CRA has announcing filing extensions for corporate (T2) and trust (T3) income tax returns. On their updated tax deadline page they have noted that you will not be charged late-filing penalities or interest in your 2019 individual (T1) income... #tax returns are filed and payments are made prior to September 1, 2020. If you have received a Notice of Assessment that says the deadline for payment is April 30, 2020, that is incorrect. For 2019 and 2020 T2 Returns otherwise due in June, July or August, these returns are now due on September 1, 2020. CRA will provide relief on penalties and interest, including late-filing penalties where returns are filed after June 1st for personal and corporate taxes. For more information, please see https://www.cpacanada.ca//p/2020/march/cra-covid19-updates Source: CPAcanada.ca

Are you working from home during the #COVID-19 #pandemic? You may be eligible to deduct #home #office #expenses if your home is where you principally (more than 50% of the time) do your work or if you use the space exclusively to earn employment income by regularly meeting clients, customers and other people. Note here the problematic issue of CRA having stated that the meetings must be in person; many #tax publishers and journalists have noted that it should include video an...d teleconference meetings as well. Expenses that are deductible include a portion of household costs (electricity, heating, water, rent, security, and maintenance). When calculating the deductible, a reasonable basis should be used, such as the area of the workspace divided by the total finished area. In addition, the employee deducting the home office expenses must obtain a T2200 from the employer, prorate the personal usage based on space and time, prorate expenses that are not related to the portion of the year and limit expenses to the amount of related income earned during the year. It is a good idea to retain receipts of all expenses to determine whether they are deductible. For more information, see #CRA Guide T4044. Source: LLN Partners Chartered Professional Accountants, Newsletter May 2020.

A #recession following this #pandemic #crisis is inevitable, but the severity of an economic catastrophe is dependent on how much longer #Canadians are expected to stay home. #Pivot Magazine writer Francis Fong reports that the longer shutdowns and layoffs persist, the more we make ourselves vulnerable to the downfall of the economy. The mortgage market is one sector that could take a serious hit if borrowers are unable to make payments. Thankfully, #Canada has programs that ...are meant to help in the case of a recession, such as #EI, and new programs such as #CERB are coming out to help soften the shock of the pandemic. The #Bank of Canada has cut interest rates by 150 basis points to zero and a 75 percent wage subsidy is meant for qualifying businesses to stay afloat and promote reopening in the unpredictable future. The variety of programs offered are a direct reflection of the diversity of Canada’s #business sector, but will all of our efforts work to minimize the recession? Source: A Recession Unlike Any Other, Francis Fong, Pivot CPA Canada May/June 2020.

We hope everyone is having a good week! Here are some answers to frequently asked #COVID-19 questions concerning benefits and #finance related worries. What is #CERB and how to apply? The Canada #Emergency Response Benefit (CERB) is a taxable benefit payment from the government for eligible workers who have lost their income due to the pandemic. CERB provides up to four #taxable benefit payments of $2,000 every four weeks. Individuals, if they are still employed or found wor...k, are allowed to earn up to $1,000 at their job while still collecting CERB. This includes individuals who are unable to undertake their regular seasonal work because of the pandemic. Here is the link to apply: https://www.canada.ca//s/benefits/ei/cerb-application.html. Remember to only apply for CERB through either Service Canada or the Canada Revenue Agency (CRA) not both! There are two ways to create a My Business Account with CRA: You can either use a Sign-In Partner (such as online banking) or register directly with the CRA by providing tax and personal information. For more information: https://www.canada.ca//bu/register-mybusiness-account.html

Are you a senior or have a senior in your care? Today the #canadian #government has announced additional #financial aid in the form of a one-time payment for eligible #seniors up to $500 for any increased living expenses due to #COVID-19 pandemic (CTV news). Seniors that are eligible for the Old Age Security (OAS) pension and/or eligible for the Guaranteed Income Supplement (GIS) will be given a one time automatic payment of $500, no application necessary. If you are not automatically enrolled in the OAS and GIS program, then you may have to apply. More information at https://www.ctvnews.ca//who-is-eligible-for-the-canadian-g Source: Jackie Dunham, CTV News, Who is eligible for the Canadian government’s new COVID-19 aid for seniors? Tuesday May 12, 2020.

Are you a #smallbusiness #employer? Just announced today: PM Justin Trudeau says the #emergency wage subsidy program is being extended beyond #June for the purpose of rehiring staff to help kick-start the gradual #economic reopening amid tough times (Rachel Aiello reports at CTV News). The subsidy is on the first $58,700 of an employee’s salary, providing up to $847 a week per employee and, as it was implemented, it was set to be in place for 12 weeks, retroactive to Mar...ch 15, for businesses and charities (CTV News). As our economy steadily prepares for reopening, the government is continuously making adjustments for the benefit of workers, small businesses, families and young people the majority of the population that drives the economy. Another demographic that Trudeau has promised to aid is seniors, more on that later. An advisory panel led by Minister Navdeep Bains will be meeting regularly over 90 days to discuss how the federal government should respond to the new challenges that are coming up amidst this pandemic. Source: Rachel Aiello for CTV News. PM says employers can now claim emergency wage subsidy beyond June, May 8, 2020

A reminder to our clients that the filing deadline for T1 income taxes is June 1st for the 2019 tax year.

Attention all our lovely clients, Please check your emails for a reminder to sign your T1 Engagement letters for the 2019 tax year. A reminder that the deadline to file for personal income taxes is April 30th. We will be accepting signed letters by person at our office Monday Friday, 9am-5pm, mail, email or fax. ... Thank you once again for being a client of ours and we are thankful for you continuing your business with our firm.

Just a reminder to our clients and friends that the deadline to contribute to your RRSP is March 2nd if you plan on it counting towards your 2019 tax year.

Demystifying Blockchain: A Few Quick Facts to Get you on Board What is blockchain? A digital ledger that is distributed across a wide network. Blocks in the chain are bits of digital information. ... What makes it unique? It is virtually impossible to hack if implemented correctly; it offers great information transparency, security and immutability; it provides more efficient ways to share information including record keeping solutions; it may lead to the creation of new products, services, and business models. What kinds of blockchains are there? Public = a fully transparent blockchain ledger where anyone can join, participate, and view. used in cryptocurrencies such as Bitcoin. Permissioned = typical for enterprise applications. Allows stakeholders to restrict who can join the network and what they can view on the ledger. used in supply chains. Copied from: CPABC In Focus magazine Jan/Feb 2020 Demystifying Blockain by Chris Rowell, DSc. (Tech)

#Blockchain is the leader in disruptive #technology that is behind digital currencies such as #Bitcoin, but also starting to affect a wide rang of businesses and industries, specifically #CPA’s. But what is blockchain exactly and how is it expected to play such a huge role in the future of accounting and financial management? The cover story of CPABC in Focus magazine reports on this topic by outlining a study conducted by the University of British Columbia and Cyberium Consu...lting, a #Vancouver-based technology and innovation firm specializing in cybersecurity and risk management to determine the best ways to educate professionals about disruptive technologies (In Focus, 2020). Blockchain’s technology is difficult to understand because of the sheer volume of information available and surveyed CPA’s have cited this complexity to be a major barrier in learning. Among these #professionals, many were taking the passive method and simply waiting for the technology to be more prominent in their lives, while others are still hesitant on trusting the system all together. The majority of participating CPA’s had the same concerns about blockchain’s long-term implications, which is a natural reaction to disruptive innovations in accounting. Despite the barriers mentioned, most CPA’s are on board with learning more about how blockchain will impact them in the future. Source: CPABC In Focus magazine Jan/Feb 2020 Its not you, It’s Blockchain by Chris Rowell, DSc. (Tech), and Tejinder Basi, CCSP, CMC

#Women traditionally have not been included in #wealth management conversations, but all of that is bound to change by 2026, Business In Vancouver reports. #Manning #Elliot LLP CPAs Sheryne Mecklai and Inder Mandar, give their honest opinions on the future reality of women-owned wealth and how the transfer of wealth from one gender to another will shape our society. Despite working towards gender equality, it is simply the reality that women’s concerns about managing business... and finance are not taken seriously. This will change as Manning Elliott focuses on launching a group that focuses specifically on understanding the needs of women and wealth, because their needs differ from those of men. Women are reported to ask more deep-dive questions,’ in order to fully understand and make an informed decision about their finances, Mecklai comments. Currently, investment advice given out to the public are still based on data and algorithms catered to standard 65-year-old males, says Mandar. In the next few years, women will be the ones owning more enterprises and becoming more prevalent in their own business. Equality in both wealth and business is the shape our business landscape is slowly becoming. Source: https://biv.com//why-women-will-control-half-all-accumulat

#Vancouver has announced on Wednesday that they plan on hiking up #empty #homes #tax by 25% in 2020. This trend may continue as proposed by Mayor Kennedy Stewart in the following years. Despite cautions by experts saying how an increase in Empty Homes Tax would increase the potential for noncompliance and evasion, Vancouver #city #council is going ahead with the decision and the money will be earmarked for affordable housing initiatives. Data shows that the city collected $39.4 million in revenue during the 2018 tax year from the owners of 1,989 vacant properties (Global News, 2019). So far, the number of vacant homes between 2017 and 2018 ha dropped 22% and the number of properties rented to tenants climbed by 7%, which will hopefully continue its upwards trend. Source: https://globalnews.ca//62/vancouver-hikes-empty-homes-tax/