Don't get Scammed! - Scammers posing as CRA

Article Source: Canada Revenue Agency Website

January 29, 2018

Don’t get scammed! Beware of frausters claiming to be from the Canada Revenue Agency

Did you get a suspicious email, telephone call, letter or text message claiming to be from the Canada Revenue Agency (CRA)? If you’re being asked for personal information such as your credit card number, bank account number or passport number, this is a scam.

Keep these facts in mind

The Canada Revenue Agency will never:

  • ask for your personal or financial information through an unsolicited email with a link
  • ask for any kind of personal information through email or text message
  • ask for payment by prepaid credit cards or gift cards
  • leave your personal information on an answering machine
  • threaten you

Even if these messages may seem convincing, they are scams and you should never respond to them or click on any of their links.

Full article here > CRA Newsroom - Don't be scammed!

THE NEW LANDSCAPE OF "INCOME SPRINKLING"

THE NEW LANDSCAPE OF "INCOME SPRINKLING"

DECEMBER 15, 2017 RELEASE

PDF Version:  pdf The New Landscape of Income Sprinkling (231 KB) pdf
(498 KB)

Introduction

When the July 18, 2017 consultation paper was released by the Department of Finance, it became apparent the proposed tax changes would have a significant impact on business owners across Canada. Following thousands of submissions from business owners, advisors and other constituents, we have seen our Liberal government pull back on the limitation to the capital gains exemption and changes with respect to related party transactions, at least for now. Further, the changes to passive investments within a private corporation have been tabled until the 2018 Federal budget, at which point our Liberal government has stated further commentary will be provided. However, it was confirmed the changes to "income sprinkling" would be pursued, with an effective date of January 1, 2018.

After much anticipation for the revisions to the "income sprinkling" legislation, the Department of Finance released revised draft legislation on December 13, 2017 and Canada Revenue Agency (CRA) released guidelines with respect to the implementation of this new legislation.

Please note the items discussed below are based on proposed amendments only and have not been introduced to legislation at this particular point in time. However, these proposals will more likely than not be passed as legislation, at which point the legislation will become effective January 1, 2018. The below analysis has been entirely based on CRA's release on December 13, 2017 labelled "Guidance on the application of the split income rules for adults".

Overview

The proposed amendments’ aim to expand the definition of Tax on Split Income (TOSI), which is a concept the Income Tax Act of Canada (ITA) has contained historically but only applied to minor child (under age 18), and has commonly been referred to as "Kiddie Tax". Where income is classified as TOSI, it automatically becomes taxable at the highest marginal tax rate, which is currently 54% in Nova Scotia. As such, it is prudent planning to ensure income is not caught under the TOSI rules.

The expanded definition of TOSI captures all dividends (including deemed dividends resulting from the redemption of shares) and interest, but not salary, paid by a private corporation to an individual from a related business and certain capital gains, unless one of the provided exclusions are met. In very general terms, a "related business" is essentially a business carried on by a related person. For the purposes of the ITA, related persons include parents, spouses, siblings, children and grandchildren, but does not include aunts, uncles and cousins. Each of the exclusions from TOSI have been briefly outlined below, following by various examples to illustrate the application of these exclusions.

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Submission to the Department of Finance regarding the proposed tax changes

September 25, 2017

Attached is a copy of our firms submission to the Department of Finance with respect to the proposed tax changes as outlined in the Consultation Paper dated July 18, 2017. Our submission includes a detailed analysis of the implications of these changes, outlines various considerations which should be addressed by Finance and also provides suggestions for changes which could be made.

pdf Submission to Finance (FINAL FULL SUBMISSION) (438 KB)

PETITION TO THE MINISTER OF FINANCE

Click the link below to sign the Official House of Commons E-petition (Petition e-1249 Tax System)

Petition e-1249

PETITION TO THE MINISTER OF FINANCE

Whereas:

  • On July 18, 2017, a consultation was launched regarding major proposed changes to the taxation of private corporations;
  • These changes are proposed to ensure the “richest Canadians pay their fair share of taxes and that people in similar circumstances pay similar amounts of tax.”;
  • Small business is vital. Most private corporations will be affected by these changes to some, if not a significant, degree. Tax burdens for some will greatly rise, retirement planning will be affected, and significant administration, complexity and uncertainty will be introduced. Such proposals will impact the core of small business, compliance and tax planning as it has been practiced since 1972;
  • If not examined appropriately, small and medium enterprises, along with their 10.5 million employees, may suffer greatly; and
  • Given the importance of small business and entrepreneurial spirit to the Canadian economy, and Canada as a whole, a more in-depth and significant process is needed. We request that the consultation be given the diligence and respect its complexity, and pervasive impact on Canadian business, merits.

We, the undersigned, citizens of Canada, call upon the Minister of Finance to: (a) extend the consultation submission period significantly beyond its scheduled 75 days; (b) make the provisions effective, at the earliest, after being passed into law; and (c) provide documentation identifying the significant concerns raised in the consultation with alternatives for amendments to the legislation or detailed explanation as to why none is merited.

Sample letter to your local MP regarding the proposed tax changes

Are you a business owner or work for a small or medium sized business and want to voice your concern regarding the proposed tax changes? 

Reach out to your local Member of Parliament with your concerns.

We have drafted a sample letter. Feel free to download it and use it as a template.

Download file here (Microsoft Word .docx format):  document Sample letter to your local MP regarding the proposed tax changes (15 KB)

Link to MP addresses for Nova Scotia: Contact details: Members of the House of Commons who represent Nova Scotia

You can also submit your comments to the Minister of Finance via email at This email address is being protected from spambots. You need JavaScript enabled to view it. or by mail at House of Commons Ottawa, Ontario K1A 0A6.

Are you a small business owner wondering how the proposed tax changes may impact you and your business?

logo with tagline 

 

Are you a small business owner wondering how the proposed tax changes may impact you and your business?

Introduction

When the Liberal government announced the 2017 Federal budget on March 22, 2017, they promised the issuance of a consultation paper by Fall of 2017 which would address “Tax Fairness for the Middle Class”. The Liberal government came through on their promise with the issuance of a consultation paper on July 18, 2017, which contains numerous proposed tax amendments causing great concern for small business owners.

Please note the items discussed below are proposed amendments only and have not been introduced to legislation at this particular point in time. However, if these proposed amendments were passed as legislation, the intended effective date is January 1, 2018 for most, but some may be retroactive to the announcement date of the consultation paper

A Practical Approach

To assist with providing a practical approach to understanding how these proposed changes may impact a small business owner, we have outlined a case scenario below.  We hope this will help to better illustrate the changes and quantify the impact.

  1. The Smith Family, consisting of Parent A, Parent B and 2 Children (Child 1 and Child 2). They own a small business in Nova Scotia called “OPCO”.  The Smith’s accountant suggested the use of a family trust when the company was first started;
  2. OPCO generates $150,000 of annual taxable income;
  • Parent A is the principal of OPCO;
  1. Parent B is a stay at home parent and is not actively involved in OPCO;
  2. Child 1 is 19, attends university and has no source of income;
  3. Child 2 is 15;
  • Parent A has been offered $1M for the shares of OPCO from an unrelated third party;

Below is an overview of the proposed tax changes along with a practical approach to the impact these changes would have on the above fact set:

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What to do if the Canada Revenue Agency reviews your tax return

Article Source: Canada Revenue Agency: What to do if the Canada Revenue Agency reviews your tax return

August 8, 2017

What is a review of your tax return?

The first thing you should know is a review is not an audit.

If the CRA tells you that your tax return is being reviewed, it is simply to ensure that the amounts you have claimed are reported accurately. It might also be because some documents are required to support your claim. It’s important to respond promptly to the information request or to call the number shown on the letter as soon as possible since there is a time limit involved.

Why is the CRA reviewing your tax return?

The Canadian tax system is based on self-assessment. You don’t usually need to include your documents when you file your tax return.

However, from time to time, the CRA will contact individuals under one of its review programs. This is part of the CRA’s efforts to ensure the integrity of the tax system.

Make sure you give the CRA the requested documents as soon as possible so it can do its review quickly and easily.

 

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How to protect yourself from identity theft

Article Source: Canada Revenue Agency: Protect yourself against fraud

July 26, 2017

  • Never provide personal information through the Internet or by email. The CRA does not ask you to provide personal information by email.
  • Be suspicious if you are ever asked to pay taxes or fees to the CRA on lottery or sweepstakes winnings. You do not have to pay taxes or fees on these types of winnings. These requests are scams.
  • Keep your access codes, user ID, passwords, and PINs secret.
  • Keep your address current with all government departments and agencies.
  • Choose your tax preparer carefully! Make sure you choose someone you trust and check their references. Always review your return, agree with the content before filing, and follow up to make sure you receive your notice of assessment, since it contains important financial and personal information that belongs to you.
  • Before supporting any charity, use the CRA website at www.cra.gc.ca/charities to find out if the charity is registered and get more information on the way it does business.
  • Be careful before you click on links in any email you receive. Some criminals may be using a technique known as phishing to steal your personal information when you click on the link.
  • Caller ID is a useful function. However, the information displayed can be altered by criminals. Never use only the displayed information to confirm the identity of the caller whether it be an individual, a company or a government entity.
  • Protect your social insurance number. Don't use it as a piece of ID and never reveal it to anyone unless you are certain the person asking for it is legally entitled to that information. If an organization asks for your social insurance number, ask if it is legally required to collect it, and if not, offer other forms of ID.
  • Pay attention to your billing cycle and ask about any missing account statements or suspicious transactions.
  • Shred unwanted documents or store them in a secure place. Make sure that documents with your name and SIN are secure.
  • Immediately report lost or stolen credit or debit cards.
  • Carry only the ID you need.
  • Do not write down any passwords or carry them with you.
  • Ask a trusted neighbour to pick up your mail when you are away or ask that a hold be placed on delivery.

Fishing Vessel Safety Regulations - Transport Canada Information Sessions

June 13, 2017

Fish Harvesters across the province will be required to follow new safety regulations coming into effect July 13, 2017.

The new regulations address issues around safety gear requirements, lifesaving equipment, safety procedures, documentation and vessel stability.

Nova Scotia Fisheries Sector Council, Fisheries Safety Association of Nova Scotia and Transport Canada will be hosting information sessions across the South Shore for those interested in learning more.

20170613 094559

Big Congratulations to Dave Rafuse owner of Blended Athletics

Article: Huddle Tenth Wallace McCain Institute Cohort Announced

May 31, 2017

We would like to congratulate Dave Rafuse owner of Blended Athletics for being named to the tenth cohort of the Wallace McCain Institute at the University of New Brunswick Entrepreneurial Leaders Program.  Dave has worked tirelessly to build Blended Athletics into one of the best and most innovative training facilities in the Province of Nova Scotia.  Dave is an excellent example of the entrepreneurial spirit, and not just the future but a current leader in our Province.  Congratulations David!

Tax Deadline for Self-Employed individuals

Article Source: Canada Revenue Agency: Media room - Tax tip: Reminder

May 18, 2017

June 15, 2017 is the deadline for self-employed individuals to file their 2016 income tax and benefit return

If you are self-employed or the spouse or common-law partner of someone who is, the deadline to file your 2016 income tax and benefit return is midnight on June 15, 2017.

The legislated due date for any balance owing is April 30. However, since that date is a Sunday in 2017, the Canada Revenue Agency (CRA) will consider your payment to have been made on time if the CRA receives it, or it is postmarked, no later than midnight on May 1.

In addition to interest, a late-filing penalty may apply to returns received after the June 15 deadline.

Top questions the Canada Revenue Agency gets at tax time

Article Source: Canada Revenue Agency: Top questions the CRA gets at tax time

March 21, 2017

Every year around tax time, Canadians call the Canada Revenue Agency (CRA) with a variety of questions. You can find a number of answers online if you are registered for the CRA’s online services.

The five most asked questions:

1. How do I change my address?

If you’re registered for the CRA’s online services, you can change your address by going to My Account, using the MyCRA and MyBenefits CRA mobile applications, or you can call us at 1-800-959-8281. You can also fill out Form RC325, Address change request, or write a letter and mail or fax it to your tax centre. Your letter must include your signature, social insurance number, new address, and moving date.

2. How do I change my marital status?

You can change your marital status online by selecting "Change my marital status" in My Account, by selecting "Marital status" in the MyCRA mobile app, or by selecting "Update marital status" in the MyBenefits CRA mobile app. You can also contact the CRA by phone, or fill out Form RC65, Marital Status Change, and send it to your tax centre.

3. What is my balance owing or where is my refund?

Find the amount of your balance owing or your refund by logging into My Account or the MyCRA mobile app. If you are getting a refund, the details will include the refund method (direct deposit or mailed cheque), the date it was sent, and the amount. You can also call the Tax Information Phone Service (TIPS) at 1-800-267-6999 to ask about your refund. TIPS is available from mid-February to December 2017.

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Locations:

Halifax

Suite 204, 620 Nine Mile Drive, Bedford, NS

Chester

4171 Highway 3, Chester NS

Bridgewater

11 Dominion Street, Bridgewater NS

Liverpool

7B Henry Hensey Dr., Liverpool NS

Shelburne

157 Water Street, Shelburne NS

Barrington Passage

3289 Highway 3, Barrington Passage NS