| Calendar of Important Dates |
Corporations with a September year end, claiming the small business deduction must pay the balance of tax owing by the end of December.
Corporations with an October year end, not claiming the small business deduction must pay the balance of tax owing by the end of December.
Chanukah, Chr
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Day, Boxing Day, New Years Day
December 24, December 25, December 26, January 1
Next Issue - January 9, 2017
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ALERT FOR ONTARIO CORPORATIONS!
Onerous record keeping starting in December...
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Effective December 10, 2016, each new Ontario corporation will be required to maintain a record of ownership assets in land in Ontario. The records must comply with the following requirements;
- identify the property
- show the dates of acquisition and disposal
- have supporting deeds/transfers including municipal address
- PIN number
- legal description
- roll number
Existing corporations have will have two years to comply with the new rules.
Consult with your real estate advisor to insure how to achieve compliance with the above.
See more information here.
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GOVERNMENT FUNDING
Location, location...
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Program Supports the Growth of Companies in Southwestern Ontario
The Southwestern Ontario Development Fund (SODF) will contribute 15% up to $5 million in grants and four-year interest-free loans against investments that will create jobs and economic growth. Eligible purchases include but are not limited to equipment, consulting services, facility retrofits and expansions, as well as employee training and other project-related costs incurred over a two to four year period.
To be eligible, businesses must be or planning to be located in a Southwestern Ontario county i.e. Brant, Bruce, Chatham-Kent, Dufferin, Elgin, Essex, Grey, Haldimand, Huron, Lambton, Middlesex, Niagara, Norfolk, Oxford, Perth, Simcoe, Waterloo, and Wellington.
Additionally, applicants are required to have 3 years of financial statements and represent one of the following sectors: manufacturing, processing, information or communication technology, life sciences, tourism or the cultural industry.
Investments under $10 million are eligible for 15% grant subsidies of up to $1.5 million. Investments over $10 million and creating no less than 50 jobs are eligible for 15% grant subsidies of up to $1.5 million plus interest free loans of up to $3.5 million to a maximum of 4 years (total funding amount from grants and loans cannot exceed $5 million).
Applicants located in Southwestern Ontario municipalities with populations exceeding 20,000 or in areas having more than 100 persons per square kilometer must invest a minimum of $500,000, have at least 10 employees, and create 10 new jobs. Companies located in smaller communities with between 5-10 employees are required to invest a minimum of $200,000, and increase their workforce by 50%.
Costs associated with business acquisitions, debt financing, ongoing operational costs, construction as well as vehicle and land purchases are not eligible for funding.
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HOLIDAY PAY
What to pay...
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It's a four-step process that requires user input for:
- Which Public Holiday is being paid
- Work Weeks preceding the holiday
- Gross wages for the work weeks preceding the holiday
- Vacation pay payable each week
The final step will calculate the total public holiday pay payable.
The calculator adds the total gross regular wages earned and the total vacation pay payable in the four weeks before the work week with the public holiday. It then divides that amount by 20. The result is the public holiday pay payable.
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CFIB SEEKS TO REDUCE HYDRO COSTS
Sign the Alert!...
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The Canadian Federation of Independent Business is launching an initiative to reduce energy costs to small business. The have proposed three ideas:
- Eliminate all time-of-use rates for small businesses and implement a lower costs on the first 3,000 kilowatt hours consumed per month
- Remove the Debt Retirement Charge before the scheduled date of April 1, 2018
- Mandatory disclosure of the Global Adjustment on all bills
They have launched an Action Alert to collect signatures from small businesses who are fed up with their high hydro costs and want government to act now on the suggestions we outlined to the Minister. Make your voice heard - print and
sign the Alert today!
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Recent CRA Decisions
There is no escape from tax...
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TAXPAYERS AND PREPARERS BOTH GUILTY
Reassessment beyond normal period - Whether Minister entitled to reassess outside of normal reassessment period - The taxpayers claimed charitable donation tax credits on their 2003 and 2004 returns.
The Minister reassessed and the taxpayers admitted that the charitable donations claimed on those returns had not in fact been made.
The taxpayers nonetheless appealed from the reassessment on the basis that it was issued outside the normal reassessment period. The Tax Court held that the respondent had the onus of showing that the Minister was entitled to reopen those years for reassessment, by showing that the appellants made a misrepresentation on each of their returns for those years and that those misrepresentations were due to carelessness, neglect or willful default.
The Tax Court held that the evidence was clear that the charitable donation claims made were false and constituted misrepresentations.
The Court concluded that while the appellants did not intend to deceive anyone with respect to the charitable donation claims, and that they were misled by their tax preparer, they nonetheless took no reasonable steps to ensure that the returns he filed were accurate. The
Minister was consequently entitled to reassess the appellants for the 2003 and 2004 taxation years.
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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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| Life in the Tax Lane - December 2016 (Episode 19) |
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