Tax & Business News
Trips, tips and traps
August 2016
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Links For August
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Latest info from StatsCan
Pop. estimate
36,155,487
CPI Annual Inflation
1
.5%
Unemployment Rate
6
.8%
GDP Monthly growth
2.3%
Forward this email to a friend!
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The countdown to the American election for President is underway and the unrelenting focus on every nuance of the candidates is something to behold.
While many may hold the process in contempt, it is remarkably transparent with flaws, foibles and faults displayed for all to see.
It will be a relief when this is finally over and may the least worse person prevail!
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Permanent Links
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PAYROLL
TAXES
CALCULATORS
MISCELLANEOUS
SENIOR'S CORNER
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| Calendar of Important Dates |
Corporations with a May year end, claiming the small business deduction must pay the balance of tax owing by the end of August.
Corporations with a June year end, not claiming the small business deduction must pay the balance of tax owing by the end of August.
Next Issue - September 12, 2016
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MANDATORY POSTING REQUIREMENTS!
We're not talking journal entries...
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All Ontario employers are required to supply employees with information about their rights, health and safety and procedures for workplace accidents.
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As an employer, you are required to post at least one copy of the most recent Employment Standards Act poster in an eye-catching, high traffic area in the workplace. As of May 20, 2015 you are required to provide each and every employee with a paper or electronic copy of the poster. The poster can be printed in colour or black and white. Please note that the Ministry of Labour updated the poster as of May 1, 2015. In the case of new hires, employers will have 30 days from the employee's start date to provide them with the poster and it must be provided in languages other than English if an employee requests a translated version"
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PUBLIC HOLIDAYS
CFIB tries to explain...
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There are
nine Public Holidays in Ontario. A Public Holiday is defined as
days that most employees are entitled to have off work with pay under the Employment Standards Act (ESA)" Most employees doesn't mean all employees and a list of exemptions can be found here.
The nine days are listed here:
- New Year's Day
- Family Day (third Monday in February)
- Good Friday
- Victoria Day (Monday before May 25)
- Canada Day (July 1)
- Labour Day (first Monday in September)
- Thanksgiving Day (second Monday in October)
- Christmas Day (December 25)
- Boxing Day (December 26).
An employee not working on a Public Holiday is entitled to compensation (public holiday pay) and those working on a Public Holiday get public holiday pay plus a premium.
Who Qualifies?
Entitlement to public holidays begins as soon as an employee starts working.
However, employees who fail, without reasonable cause, to work all their last regularly scheduled day of work before the public holiday or all their first scheduled day of work after the public holiday are not entitled to public holiday pay. (Note: This does not mean simply the last calendar day before the public holiday and the first calendar day after the public holiday - it means the last scheduled day of work before the public holiday and the first scheduled day of work after the public holiday.)
How to Calculate Public Holiday Pay
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EQUIPMENT GRANTS
Ontario manufacturers only...
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Government Funding News
Program Allocates $65 Million to Ontario Manufacturers
The CME SmartGreen Program offers 50% up to $500,000 to Ontario manufacturers for equipment that will reduce emissions and/or increase productivity. Funding is limited to $200,000 per project; companies may apply for up to 5 projects as long as each project takes place at a different facility.
Applicants must have at least 10 employees, be producing emissions of less than 25,000 tonnes/year, and not be participating in Ontario's Cap and Trade Program. Though there is no deadline, funding will be limited to approximately 110 projects.
Top of Page
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MARKETING GRANTS
See if you qualify...
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Government Funding News
Government Offers Money for Marketing!
GRANT PROVIDES OPPORTUNITY FOR COMPANIES TO INCREASE EXPORT SALES
The CanExport program will fund up to 50% of export development related activities to a maximum of $99,999. Eligible activities include but are not limited to:
- Business related travel expenses
- Tradeshow participation and attendance
- Market research
- Development of new marketing tools to integrate with international markets (e.g. transalation of brochures into another language)
- Legal fees associated with securing a distribution/representation agreement
In order to participate, businesses are required to have $200,000 to $50 million of annual sales revenue, no more than 250 full-time employees, and be an incorporated, for-profit business. Food processors and agricultural businesses are not eligible but can apply for funding through AgriMarketing Small and Medium Enterprises. Project expenses must be at least $20,000 in order to participate in this government financing program. Companies can submit more than one application, but must complete their initial export project before being eligible for a second contribution from CanExport.
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Recent CRA Decisions
There is no escape from tax...
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RELIEF FROM ARBITRARY ASSESSMENTS!
Corporate taxpayer failed to file its returns within statutory time frame - Minister issued arbitrary assessments including interest and penalties - Minister later refused taxpayer's application for relief from interest and penalties -
Whether Minister's decision reasonable, thus entitling taxpayer to judicial review
B was the sole shareholder of the corporate taxpayer which failed to file its returns for 2001 and 2002 within the six month statutory time frame. As a result the Minister assessed the taxpayer arbitrarily for 2001 and 2002 under subsection 162(2) of the ITA and imposed interest and penalties as well. Following a second level review, the Minister denied the taxpayer's application under subsection 220(3.1) of the ITA for relief from the interest and penalties imposed.
The Minister's position was that: (a) the taxpayer's delay in filing its returns on a timely basis was not due to "exceptional circumstances" beyond its control (see Information Circular IC07-1 (the "Circular")); and (b) B's illness did not constitute an exceptional circumstance, inasmuch as such illness did not take place until after the expiration of the normal reassessment period.
In contesting the taxpayer's application for judicial review, the Minister acknowledged his error in stating that B's illness did not occur until after the expiration of the normal reassessment period, but still argued that his second level review decision was reasonable. In allowing the taxpayer's application for judicial review the FC concluded, in part, that: (a) the Minister is free to grant relief under subsection 220(3.1) of the ITA for reasons not mentioned in the Circular; (b) in the present proceedings, however, the Minister failed to take into account a number of important considerations which rendered his second level decision unreasonable.
These considerations included:
- (a) an agreement dated July 24, 2006, between the taxpayer and CRA that the latter would not take tax collection measures if the taxpayer would file all of its late returns no later than September 15, 2006;
- (b) the fact that B was suffering from cancer during 2005 an 2006, but on September 13, 2006, the taxpayer's former accountant still filed its 2001 and 2002 returns, although for some undisclosed reason, the CRA did not acknowledge receipt of these returns until June 7, 2007, and then refused to accept them because they were filed beyond the expiration on August 1, 2006, of the normal reassessment period; and
- (c) the fact that during 2005 and 2006 all of B's energy was being devoted to defending litigation relating to land held by another of his corporations.
As a result of the foregoing findings, the matter was referred back to the Minister for re-consideration.
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| Disclaimer |
 The preceding information is for educational purposes only. As it is impossible to include all situations, circumstances and exceptions in a commentary such as this, a further review should be done. Every effort has been made to ensure the accuracy of the information contained in this commentary. However, because of the nature of the subject, no person or firm involved in the distribution or preparation of this commentary accepts any liability for its contents or use.
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NEW NEWS
All you need to know...
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Watch this 10-minute rapid-fire discussion of select recent developments in the wonderful world of Canadian tax by the
Video Tax News Team.
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| Life in the Tax Lane - August 2016 |
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Sincerely,
Howard Render, CPA*CA
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