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Are you a snow bird? What you know before entering back to Canada! Lisa Patrick

 If you leave Canada for 6 months or an extended period of time, you could lose health care benefits from your province, old age security payments, and subsidies.
A quick copy of your passport will prove your reentry.  OR keep all your return travel papers (boarding pass)  for ever!
 
I asked a custom agent why they do not stamp all passports on return, they said it is not their policy.  Short of corresponding to our federal government for such to become policy, the customs agent advised me to ask people to start asking for this stamp when they return.
 
The agent assured me they would not refuse to stamp it.  Now you have a nice keep sake for your travel for ever and a proof you returned to Canada if Revenue Canada ever questioned you.

Darlene Lafond C.P.C.


Lost your tax papers? Now What? Lisa Patrick

If you are a taxpayer with only employment and investment income you may order from Canada Revenue Agency all your previous years paperwork.  
Now, it can take the government up to 2 years to get all the tax info keyed into your social insurance number from your employers and investment companies.
Call 1 800 959 8281, and advise them you have lost all your tax papers and explain you are an employed taxpayer.
Ask them to help you determine if they have what you need at this date on their computer database.
There is no need to visit an office, a phone call will provide the confirmation and mail service to your address will get you what they have.
 
If you have a personal taxpayer with a business and have lost all your tax slips and business bookkeeping, there is a solution but it is much more time consuming and possibly more expensive to get your information recreated.
Ordering your tax slips from the government is easy but it is the recreating of the receipts and statements for the business that will be time consuming and possibly expensive.
 
If the income you earned for the business is less than $3500 – maybe consider just reporting the income
a.                   There is no Canada pension plan costs
b.                   There is no tax cost for that income level.
If the total income you earned is less $11,000 – maybe still consider just reporting the income rather than trying to recreate all the bookkeeping.
a.                   There is no federal tax cost
b.                   The Canada Pension Plan cost is minimal (approx 5% cost of income over $3500)
c.                   The Provincial tax cost is minimal (approx 5% to 11% of income over $9000 to 16,000 of income) – depending on the province.
 
Brief Must do list for recreating bookkeeping paperwork:  This list will not provide the official papers but if your self reporting is reasonable; an audit from the Canada Revenue Agency may be fair and allow some claims.
1.                   get some documents from some authority indicating why the papers were lost.
a.       An accident from fire, flood, robbery, vehicle, water backup, etc. – insurance company, police
b.       Marital breakup, move, shipping problem, third party control lost them, etc -  letters or affidavit
c.       If you chose to not keep items, maybe you need to see a doctor and see if they would provide a letter indicating you lost your mind or you were ill!
2. bank statements, order to replace lost ones
    a.       identify the deposits that are not Income for the company with a description and source of such information.
                   i.      All deposits to your bank will be considered income to the business if you do not eliminate the personal non revenue deposits
    b.       identify the withdrawal amounts and what they were for
3. cash receipts – recreating the amounts you know you spent by writing the amounts and when and where you bought them.  If you have the item still, take a picture, document serial numbers etc. to support the claim.
4. charge receipts & statements – order to replace lost ones.
    a.       Identify the withdrawal amounts and what they were for
5. vehicle logs, repair bills that can be reproduced by your dealer, will support kilometers travelled to substantiate your gas purchases.
    a.      Customers distance from your business location will also support travel claims.
6. customer records and vendor records used to support the recreation of information.
 
There is no guarantee the aforementioned information will be accepted in great quantity but with a qualified tax practitioner representing you with the government and the truth is reasonably supported by events; we do suspect Canada Revenue Agency will be fair in there assessment.


Divorcing? Lisa Patrick

1.                   Getting all the financial information from both parties openly available to both is sometimes a lot of “fun”.  Asking for a copy of the tax returns and Government notice of assessments may not be enough.
GET the Tax slips ordered from Canada Revenue Agency.  A taxpayer may not claim a specific income or rrsp purchase but CRA will have a copy of tax slips that are filed by investment companies and employers.  Get your estranged spouse to sign a T1013 authorizing your accountant or lawyer to order all tax slips.
 
2.                   Child Support agreements written to indicate payments are required for a child results in a loss of opportunity to claim the child as a dependent.
Specific wording in a support agreement for dependents must be explored.  If you have two children – the solution is real easy.    Ask a lawyer to consider writing the agreement to reflect: support is paid by one taxpayer for only one child with other taxpayer required to pay for the other or have support payments rotate per taxpayer each other year.

Take some of the stress out of your life.. ask the right questions.

Darlene Lafond R.P.A.


Partnerships for business. Lisa Patrick

On January 1, 2011, new filing criteria for the Partnership Information Return will come into effect. The new filing criteria will apply to partnerships with fiscal periods ending on or after January 1, 2011. For partnerships with fiscal periods ending on or before December 31, 2010, the current criteria still apply. See Partnerships and Information return filing requirements for more information.

Topics about Partnership

Reporting partnership income
Each partner files an income tax return to report his or her share of the partnership's net income or loss.
2010 and previous years filing requirements:
Partnerships that do not have to file a partnership information return (PIR) - T5013
Five partners or less throughout the whole fiscal period; and no partner who is another partnership.
Partnerships that have to file a partnership information return (PIR) - T5013
Six or more partners at any time in the fiscal period; or five partners or less throughout the whole fiscal period and one or more of its partners is another partnership.
The CRA is replacing the ABOVE requirement about the number of partners in a partnership with a requirement related to financial thresholds, and clarifying the requirements for the types of partners.

Effective January 1, 2011, a partnership that carries on a business in Canada, or a Canadian partnership with Canadian or foreign operations or investments, has to file a T5013 for each fiscal period of the partnership:

If, at the end of the fiscal period,
the partnership has an absolute value of revenues plus an absolute value of expenses of more than $2 million, or has more than $5 million in assets; or
If, at anytime during the fiscal period,
the partnership is a tiered partnership (has another partnership as a partner or is itself a partner in another partnership);
the partnership has a corporation or a trust as a partner; (common occurance!)
the partnership invested in flow-through shares of a principal-business corporation that incurred Canadian resource expenses and renounced those expenses to the partnership; or
the Minister of National Revenue requests one in writing.
Where can businesses get more information?

For more information, businesses can go to www.cra.gc.ca/partnership. More information will be added as it becomes available. Businesses can also contact the Business Enquiries line at 1-800-959-5525.

 


Wondering how to do a simplier GST return? Lisa Patrick

Cra provides a simplier method of the accounting for the GST.  This method also provides for a simpler GST return.  Most business types can qualify for this method.
You must contact the government in order to use this method.  
 
The Cra guide: GST Quick Method RC 4058 <http://www.cra-arc.gc.ca/E/pub/gp/rc4058/rc4058-10e.pdf>  can assist you if you desire researching.  Or Contact the government at 1 800 959 5525.
This means that you remit only a part of the GST tax that you collect, or that is collectible.

Darlene Lafond R.P.A., C.P.C.


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