Happy New Year! The Government is imposing various tax increases for all Quebecers in 2012. An increase in the QST, increase in the QPP contribution rate, increase in the health contribution fund, increase in gas tax, etc…
Now, more than ever it’s extremely important to seek professional advice and take advantage of all possible tax deductions available to you.
For more information on the various tax increases, please watch this short video.
On January 1, 2012, the rate of the Québec sales tax will rise from 8.5% to 9.5%. The new rate will apply to taxable supplies for which the QST will be payable as of January 1, 2012.
The QST is compounded on top of the 5% GST. The new effective combined sales tax rate is 14.975%.
The rules for determining when the QST will apply at the rate of 9.5% depend on the nature of the good or service supplied and the type of supply made.
For more information on how this increase affects your business, please consult Revenu Quebec’s website link.
It’s Friday so we decided to post something funny to lighten up the mood heading into the weekend. YES, all this is true and YES we love dealing with this stuff on a regular basis! Enjoy!!
Denmark Saturday became the first country in the world to impose a fat tax after a week in which consumers hoarded butter, pizza, meat and milk to save a few dollars.
In Québec, everyone must be covered by prescription drug insurance. Two types of insurance plans offer this coverage:
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 |
|||
Monthly deductible |
Monthly
|
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 |
|
$16 |
$60 – $16 = $44 x 32 % = $14.08 |
$16 + $14.08 = $30.08 |
$60 - $30.08 = $29.92 |
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.
Source – Regie de l’assurance maladie Quebec: http://www.ramq.gouv.qc.ca
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.
Account Offerings
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”.
$25 ING Direct Sign-up Referral Bonus
In order to get the $25 ING Canada freebie:
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?
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.
SURVEY HIGHLIGHTS
Overall, the cost of Canada’s Sovereign and eleven Governors is comparable to the monarchies of other Western nations.
The week has just started and tax season is in full swing. Here is a video to help brighten up your day!
Tax planning and financial planning are two main topics leading to your overall financial success. Enjoy the funny video… It’s hilarious!
During this tough time of the year, we are all stressed with our pending income tax returns. Here’s a little video we found which might brighten up your day!
Make sure to count all your pennies because you are going to need them!
As of January 1, 2011 there have been a broad range of tax increases for all Quebecers and those individuals who live on the island of Montreal. Below is a list of all increases: