Better Tax Services is delighted to be a certified advisor for Xero – a new web-based accounting system that enables small to medium sized businesses to work in partnership with their accountants and business advisors.
We will still continue to support our clients who use a wide range of both online and desktop based accounting software we see this partnership with Xero as a great opportunity to attract new clients but also a great way of getting more involved and more collaborative with our existing clients.
Have a look at the video below which is a great introduction to Xero.
If you do have any questions regarding Xero and are considering using it as your accounting system then please get in touch. We’re more than happy to offer any advice and support that get’s you up an running with Xero in no time.
In Québec, everyone must be covered by prescription drug insurance. Two types of insurance plans offer this coverage:
Private plans (group insurance or employee benefit plans)
The public plan, that is, the one administered by the Régie de l’assurance maladie du Québec.
If you are eligible for a private plan, you must join that plan and provide coverage for your spouse and children. Only those persons who are not eligible for a private plan must register for the Public Prescription Drug Insurance Plan.
Administered by the Régie de l’assurance maladie du Québec, the Public Prescription Drug Insurance Plan is a government insurance plan offering basic prescription drug coverage. It was set up in 1997 to cover all Quebecers who are not eligible for a private plan.
The insurance plan helps cover a portion of the cost of prescription drugs purchased at the pharmacy. Below is an example:
EXAMPLE A $60 prescription presented at the pharmacy on July 1, 2011
Contribution paid by the insured person
Amount paid by the Régie
Fixed amount paid when making the first drug purchase during the month.
32% of the cost of the prescription minus the deductible
Total of the deductible plus the co-insurance
Cost of the prescription minus the contribution by the insured person
$60 – $16
$44 x 32 %
Generally speaking, persons covered by the public plan must pay a premium, whether or not they purchase prescription drugs. The premium is collected every year by the ministère du Revenu du Québec when income tax returns are filed. For example, the premium for 2011 will be collected in the spring 2012, when income tax returns for the 2011 taxation year are filed. Persons who pay a premium to the public plan must complete Schedule K of their Québec income tax return.
The amount of the annual premium varies from $0 to $563 per adult, depending on net family income. This amount is in effect from July 1, 2011 to June 30, 2012.
As an added value to our clients, Better Tax Services has decided to partner with NEBS PAYweb.ca for all your payroll needs.
Why Choose NEBS PAYweb.ca for your Payroll Services?
Established in 1967, NEBS PAYweb.ca is Canada’s longest serving and most trusted payroll specialist allowing us to excel in customer satisfaction and customer support. PAYweb has been trusted by Canadian companies from coast-to-coast for over 40 years. Their clients range in size from 1 employee to 1000 employees. They can accommodate businesses with employees across Canada.
Recently, I was doing some research on high interest savings accounts and when I came across ING Direct, I noticed that they are offering a sign up bonus of $25 when depositing $100 initially. So I thought, what the heck, I’ll sign up for an account and review the service for my clients, and the $25 sign up bonus doesn’t hurt either.
What is ING Direct?
ING direct is an online bank (covered by CDIC) similar to other online savings accounts. That is, you do most your basic banking elsewhere, but you can transfer money back to forth to ING’s savings accounts to take advantage of their relatively competitive interest rates. There are no fees on ING direct’s accounts.
TFSA – ING Direct is currently offering the highest interest rate on a TFSA in Canada at 2%. In addition to regular savings TFSA, they offer mutual fund and GIC TFSAs.
High Interest Savings - ING’s high interest account is similar to the PC Financial account except with a slightly higher interest rate. This is the account that I opened to claim my $25 freebie.
Chequing – ING’s newest THRiVE chequing account pays up to 1.10% of interest on daily balances. This account is most similar to any other chequing account from any of the major banks without fees!
Business Savings Account – ING offers incorporated business, sole proprietorship’s and partnerships a high interest savings account. This account can be used to set aside excess cash or for short term investments. Current rates are 1.25% as if the publish date of this article. There is no minimum amount for this account is perfect for all small businesses.
The Sign up Process was painless and very quick. All they needed was basic information along with basic banking info from which the client who will be transferring money from. After that, a cheque needs to be mailed in to verify banking information. From the beginning to end, the whole process took about 3 business days, with about 20 minutes worth of “work”.
2.When the form asks, use the orange key code 35870202S1 (new)
3.Deposit at least $100 with your initial bank verification cheque .
After your account is opened, you’ll notice the $25 bonus appear in your transaction history. Note that the code above is good for only fifty uses, so use it while you can. I don’t expect it to last long.
Anyone else with ING Direct? What has your experience been like?
If you have a balance owing for 2010, the Canada Revenue Agency charges compound daily interest starting May 1, 2011, on any unpaid amounts owing for 2010. This includes any balance owing if your tax return is reassessed. In addition, you will be charged interest on the penalties starting the day after your return is due. The rate of interest charged can change every three months. See prescribed interest rates.
If you have amounts owing from previous years, the CRA will continue to charge compound daily interest on those amounts. Payments you make are first applied to amounts owing from previous years.
If you owe tax for 2010 and do not file your return for 2010 on time, the Canada Revenue Agency will charge you a late-filing penalty. The penalty is 5% of your 2010 balance owing, plus 1% of your balance owing for each full month that your return is late, to a maximum of 12 months.
If you were charged a late-filing penalty on your return for 2007, 2008, or 2009 your late-filing penalty for 2010 may be 10% of your 2010 balance owing, plus 2% of your 2010 balance owing for each full month that your return is late, to a maximum of 20 months.
There is a lot of media hype surrounding the upcoming marriage of Prince William and Kate Middleton in the British Royal Family. Many people are looking forward to what dress Kate will be wearing, how the ceremony and celebration will play out and who will end up attending the wedding. Reports state that an estimated audience of two billion people will tune into the wedding on the morning of April 29, 2011.
With all this attention surrounding the Royal Family, Canadians are beginning to wonder if we are paying for any of this. I did some research and found a very interesting report from the The Monarchist League of Canada dated from July 2009.
Canada’s Royal Family and Vice-Regal officeholders together undertake significantly more than 4,000 engagements a year.
The report calculates that the total cost of the Canadian Crown in 2007 was $50,146,896 or $1.53 per Canadian.
The Monarchy costs residents of the United Kingdom (a unitary state of compact size) a total of £38 million in 2007 ($76.7 million, or $1.26 per person).
By way of comparison, the Canadian Monarchy costs Canadians less than the Senate ($2.45 per person), about the same as the National Gallery of Canada ($1.43 per person) and a little more than the Library of Parliament ($1.02 per person).
The same accounts indicate that the Canadian Broadcasting Corporation cost Canadians $1,114,053,000 ($33/Canadian).
The current Civil List for the Belgian Monarchy is €13.8 million ($22.6 million) or $2.18 per Belgian resident. The 2007 budget accorded the Spanish Royal House by the Cortes was €8.66 million ($14.4 million) or $.35 per Spanish resident.
Overall, the cost of Canada’s Sovereign and eleven Governors is comparable to the monarchies of other Western nations.
In an effort to increase accountability and transparency, the Canada Revenue Agency, or CRA, released the Taxpayer Bill of Rights in 2007. The underlying assumption of this document is that if citizens are treated fairly and get the information they need, they will be more likely to comply with the law. Fifteen rights for taxpayers are outlined. They include general rights including the right to privacy, access to accurate and timely information, professional and courteous treatment and the fair application of laws.
In the Taxpayer Bill of Rights, more specific rights are outlined as well. These include the right to a review and possible appeal, the right to lodge a complaint and be provided with an explanation of the findings and the right to service in both English and French. Also listed is the right to representation, which may come in the form of an accountant or any person of the taxpayer’s choosing. The Taxpayer Bill of Rights also provides relief from penalties and interest in extraordinary circumstances.
Additional provisions are the specific requirements of the CRA, in particular, the annual publishing of their service standards and report as well as timely warnings by the CRA of shady tax schemes to citizens.
The rights outlined fall into either the legislative or service category. Issues in the legislative area can be addressed through the redress rights in the legislation and court appeals where appropriate. Taxpayers with service issues may file a complaint or contact the Taxpayers’ Ombudsman.
In addition, the Taxpayer Bill of Rights seeks to address small business concerns with five commitments. These five promises are aimed at reducing the compliance burden on small businesses by reducing costs and offering resources to assist small businesses with compliance.
The Taxpayer Bill of Rights outlines what you can expect in your dealings with the CRA. Know the services you are entitled to before initiating any dealings with the CRA will help you make the most of your interactions.
Tip # 1 – Be prepared
Have pertinent information and documentation on hand when you contact the CRA. This can include your:
Income tax report
Social Insurance Number (SIN)
GST registration number
Any correspondence relevant to your request or complaint to the CRA.
Tip # 2 – Be quiet and respectful
Addressing issues of taxes can be stressful. If you feel you that were treated unfairly and you are contacting the CRA to make a complaint, your emotions may be running high. Remember that the agent you are speaking to is probably not responsible or even aware of the situation you are seeking help with. They are there to assist you. If you are disrespectful or remove your frustration on them, you make it difficult for them to effectively understand your situation and provide the assistance you require.
Tip # 3 – Keep track of your communications
Take detailed notes of all your communications, written or verbal, with the CRA, including dates.
If you deal with the CRA by phone, make a written summary of the conversations.
Keep all correspondence you send and receive from the CRA.
A record of your transactions with the CRA may be useful at a later date in case of dispute about what was discussed.
Tip # 4 – Ask for the phone agents for their identification.
When you contact the call center of the CRA or general line of investigation, you are entitled to know the identity of the agent who handles your call. Ask the agent for their first name, agent identification number and regional suffix.
This information will will reinforce the agent’s accountability and may be useful if at a later date, you must prove that you spoke with someone at the CRA or to confirm that you have received advice.
March 3, 2014 - RRSP contribution deadline March 3, 2014 - Deadline for 2013 Home Buyer Plan repayments April 30, 2014 - Personal Tax Return deadline April 30, 2014 - Payment to the CRA for your 2013 balance owing including Self-Employed June 16, 2014 - Self-Employed Tax Return deadline