Claassen Updates
The B.C government has, after consulting with legal professionals in B.C, decided to extend the Land Owner Transparency Registry to November 30, 2022. If you are an interest holder or beneficial owner of land in B.C. please inquire with your legal professional to ensure you are in compliance.
For further details please visit: Land Owner Transparency Registry
Halloween is a big event in many households across Canada. Families spend countless hours wading through mud-filled fields in search of the perfect carving pumpkin, putting up spooktacular decorations and finding just the right costumes. At the end of this fun-filled Halloween season your reward is heaps of delicious treats to enjoy.
If you are like us and always on the lookout for fun opportunities to teach financial literacy, Halloween is not to be missed. Counting, categorizing, and splitting candy fairly has always been part of the fun and a great inadvertent learning opportunity. But as kids get older the idea of splitting candy with parents becomes less appealing. This presents itself as another great chance to introduce the concept of the “Candy Tax”. Parents will get a few treats for their efforts and their kids will begin to understand the concept of tax in a way that is relatable.
For further details please visit: Candy Tax and Taxes on Treats
On July 30, 2021, the Government announced several extensions and changes to numerous COVID-19 benefit programs including:
October 23, 2021 Extended Eligibility - Canada Emergency Wage Subsidy (CEWS), Canada Emergency Rent Subsidy (CERS) and Lockdown Support (LS).
August 29 – September 25, 2021 Increased Support Rate - CEWS, CERS and LS
October 23, 2021 Extension - Canada Recovery Benefit (CRB), Canada Recovery Caregiving Benefit (CRCB), and Canada Recovery Sickness Benefit (CRSB)
Increased maximum number of weeks of CRB to a total of 54 weeks, at a rate of $300 per week. Available to those who have exhausted their employment insurance benefits.
For more further details please visit: Government Extensions and Business Support
Summertime often brings thoughts of beaches, lakes, ice cream and lazy days in a hammock. It can also be a great time to spend with your kids exploring the world of financial literacy. There are many organic ways to explore the world of money with your kids. Below are a few links with great ideas for some summertime activities:
The CRA announced in a February 9, 2021 news release that there will be a one-year waiver of interest on taxes payable for the 2020 tax year for individuals who meet the following conditions:
have total taxable income of $75,000 or less in 2020
have received at least one Covid-19 support benefit in 2020:
Canada Emergency Response Benefit (CERB)
Canada Emergency Student Benefit (CESB)
Canada Recovery Benefit (CRB)
Canada Recovery Caregiving Benefit (CRCB)
Canada Recovery Sickness Benefit (CRSB)
Employment Insurance (EI) benefits
Provincial or territorial emergency benefits
For more information please visit: Interest Relief
Accounting Standards
There has been great deal of change to accounting standards in the past few years. As a business owner, are your financial statements up to date? How might this affect your business? Contact us if you have any questions.
Corporate Tax Rates
The small business income tax rate for 2019 on the first $500,000 of active business income in British Columbia is 11.0%.
On July 18, 2017, Finance Minister William F. Morneau released a series of documents and draft legislation curtailing tax planning using private corporations. In his letter, the Minister says "Addressing tax planning strategies, closing tax loopholes and making sure all Canadians pay their fair share is the next step in our plan; a plan that recognizes that Canadians deserve to feel confident that their Government is working for them."
The proposals address three perceived "strategies and loopholes":
Sprinkling income using private corporations, which can reduce income taxes by causing income that would otherwise be realized by a high-income individual facing a higher personal income tax rate to instead be realized (e.g., via dividends or capital gains) by family members who are subject to lower personal tax rates or who may not be taxable at all.
Holding a passive investment portfolio inside a private corporation, which may be financially advantageous for owners of private corporations compared to other investors. This is mainly due to the fact that corporate income tax rates, which are generally much lower than personal rates, facilitate the accumulation of earnings that can be invested in a passive portfolio.
Converting a private corporation's regular income into capital gains, which can reduce income taxes by taking advantage of the lower tax rates on capital gains. Income is normally paid out of a private corporation in the form of salary or dividends to the principals, who are taxed at the recipient's personal income tax rate (subject to a tax credit for dividends reflecting the corporate tax presumed to have been paid). In contrast, only one-half of capital gains are included in income, resulting in a significantly lower tax rate on income that is converted from dividends to capital gains.
The proposals dramatically change the landscape that the Canadian tax community has been legally working in. Collectively this group of proposals represent the most significant change to the tax regime affecting private corporations since tax reform in the early 1970s. Almost certainly the proposals will result in increased income taxes for many families and corporations.
We will be monitoring the legislation carefully and adjusting our tax planning priorities to take into account the new rules as they become effective.
On July 18, 2017, Finance Minister William F. Morneau released a series of documents and draft legislation curtailing tax planning using private corporations effective January 1, 2018. Learn more
Frank has actively volunteered in the community for over 30 years. Frank is currently the Chair of the Richmond Arenas Community Association and sits on the board of the Richmond Community Foundation.
We use NewViews accounting software, a recognized leader in providing software solutions for the non-profit sector. We can set up and customize NewViews to fit your situation.
We are always keeping an eye out for fantastic new clients and team members.
If you are interested in finding out more about how we can help you, email us at admin@claassen.ca
On June 24th the Chartered Professional Accountants Act was proclaimed into force by the government of British Columbia. The Act unifies the accounting profession through the amalgamation of the Certified General Accountants Association of BC, the Institute of Chartered Accountants of BC and the Society of Certified Management Accountants of BC.
The CPA designation is Canada’s pre-eminent accounting and business designation. With more than 38,000 members and students in B.C. and over 190,000 members across Canada, CPAs are providing crucial financial expertise to businesses in every sector of the economy.
Chartered Professional Accountants play key roles within diverse segments of the economy, including industry, public accounting, education, government, and the not-for-profit sector. We offer a strong set of accounting and managerial skills required for today’s complex and evolving environment. CPAs are broad-minded, forward-thinking professionals who undertake appropriate analysis, exercise good judgement, communicate effectively, and act to protect the public interest.
