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Topics & Tips

1st edition of 2010

January 4th, 2010


 

 

Welcome to IPBC's Topics and Tips. It is our commitment to provide timely and informative content to our members and the public.
Your feedback is welcomed and encouraged on topics, content, and inquiries.

 

 

lttle eileen tax detectiveDear TaxDetective®...

IPBC's Topics and Tips Newsletter 'Dear TaxDetective®' is a monthly column that answers burning questions about accounting and tax. Remember Dear Ann? Well now's your chance-- ask Dear TaxDetective a tough question. Send your questions to info@ipbc.ca

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Dear TaxDetective®

Copyright 2010 Eileen Reppenhagen

Dear TaxDetective:

My client is incorporating and plans to charge himself out as a self-employed consultant on commission to his corporation. The corporation is picking up all the expenses. The corporation will then bill his current employer so they won't have to pay for his benefits. Is this a good idea? What tax consequences would I need to know about?

Tax Detective: Unclear about the status of an owner/manager who is an employee? Review the payroll section of the CRA website and request a ruling using a CPT1. It's highly unlikely an owner/manager is self-employed. If the T2125 is rather barren as the corporation is absorbing the expenses, it's time to consider a review of active business income.

There's more. If the new corporation's customer is the former employer, and there aren't enough other full time employees, the income earned will not be considered Active Business Income eligible for the Small Business Deduction. ABI is calculated on T2 Schedule 7. The expenses of the corporation will be limited to those that would be identical to those of a regular employee. Those reasonable business expenses that don't qualify for business deduction may be left on the books as an expense but will be added back to adjust the taxable income upwards for tax.

Worker's Compensation premiums would be payable by the customer, not by the corporation, so the corporations customer isn't going to get out from under very many benefits.

Your client's corporation will be required to remit withholdings for payroll, issue T4's, and unless all of the earnings are paid out, pay tax at the highest corporate tax rate on earnings adjusted for undeductible expenses. Looking for reading on the subject? You won't find it by using the CRA search engine as personal services business doesn't show up at all. Search under Active Business Income to see what is not ABI.

Income Tax Act: S. 125(7) provides definitions

CRA Guides: RC4110 and T4012 (See Chapter 4)

IT Bulletins:

1. http://www.cra-arc.gc.ca/E/pub/tp/it73r6/README.html

2. http://www.cra-arc.gc.ca/E/pub/tp/it421r2/README.html

3. http://www.cra-arc.gc.ca/E/pub/tp/it432r2/README.html

Court cases

489599 B.C. Ltd. v The Queen, 2008 TCC 332

Departure from Federal Court Hughes & Co.

The Queen v Hughes & Co. Holdings Ltd. 94 DTC 6511

Not available on Canlii (starts posting in 1996)

Lerric Investments Corp v Canada 2001 FCA 14

and

Lerric Investments Corp v The Queen 1999 Canlii396

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This column is written by Eileen Reppenhagen, CGA, Certified QuickBooks ProAdvisor, and Honorary Member, IPBC

Do you have a question about tax? Send Eileen your question for a future column via eileen@taxdete ctive.ca

Visit her website at www.tax detective.ca

 

 

Accounting Standards for Private Enterprises

The accounting standards for private enterprises in Canada are now available.

To obtain more information, click here

 

 

IPBC NEWS DESK

From The Executive Director's Desk

Imagine networking with some of the top bookkeepers in the country. Imagine the chance to be on the fast track to a more lucrative practice . . . to being a certified professional bookkeeper (CPB) . . . and to receiving greater professional recognition inside and outside of this network. Regional Meetings are a vital part of that formula for success.

They're a unique chance to combine learning - a guest speaker shares expertise that's sure to make your work a bit easier - with fun and powerful networking. Every meeting is free to attend.

GRANDE PRAIRIE, AB

Date: Wednesday January 6th, 2010

Time: 6PM to 8:30PM (meetings start & end precisely on schedule)

Location:

Stanford Inn, 11401- 100 Ave, Grande Prairie, AB

Each attendee is responsible for his or her own meal and beverage

Regional Developer: Lisa Butler, CPB

Presenters: Don Blonke & Vicki Townson, partners at BDO Dunwoody

Topic: Taxes: GST, Payroll, and Preparer Liability

Non Members are welcome to attend two meetings to evaluate IPBC.

To register for this meeting, contact us at info@ipbc.ca

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NANAIMO, BC

Date: Monday January 11th, 2010

Time: 6PM to 9PM (meetings start & end precisely on schedule)

Location:

ABC Country Restaurant

6671 Mary Ellen Drive (near Woodgrove Mall), Nanaimo, BC

Each attendee is responsible for his or her own meal and beverage

Regional Developer: Sharon Unwin, CPB

Presenter: Nick West from Enable Business Consulting

Topic: Strategic Planning for Business

Every business that is planning on moving forward should have a strategic plan. The strategic planning process should be relatively quick and produce a working document. It is mostly about deciding where you want to be in a set time period, say 5 to 7 years away, and developing a route to get you there. It should say how big you want to be, what you are going to offer in the way of goods or services to get you there, who you would like as your customers, and what your method will be to track your financial progress.

Non Members are welcome to attend two meetings to evaluate IPBC.

To register for this meeting, contact us at info@ipbc.ca

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OTTAWA, ON

Date: Tuesday January 12th, 2010

Time: 6PM to 9PM (meetings start and end precisely on schedule)

Location:

Denny's Restaurant, on Bank Street (Southkeys Mall)

You are responsible for your own meal and beverage

Regional Developer: Linda Vogel, CPB

Presenter: Garth Steele from Welch LLP, Chartered Accountants

Topic: HST Implementation for Ontario

Non Members are welcome to attend two meetings to evaluate IPBC.

To register for this meeting, contact us at info@ipbc.ca

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RED DEER, AB

Date: Thursday January 14th, 2010

Time: 6PM to 8:30PM (meetings start & end precisely on schedule)

Location:

ABC Restaurant

2085 Gaetz Ave, Red Deer, AB

Each attendee is responsible for his or her own meal and beverage

Regional Developer: Valerie Rideout, CPB

Presenter: Cindy J. Parker, ACIA, CA, Partner of ProVerus LLP

Topic: What Accountants Want at Year End

Non Members are welcome to attend two meetings to evaluate IPBC.

To register for this meeting, contact us at info@ipbc.ca

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TORONTO EAST, ON

Date: Monday January 18th, 2010

Time: 6PM to 9PM (meetings start & end precisely on schedule)

Location:

Apple Jack's

5328 Hwy 7 (at McCowan), Markham, ON

You are responsible for your own meal and beverage: Fajita Buffet for $20.00 plus tax and gratuity includes the following: Nachos, House, and Caesar Salad; Chicken and Steak Fajitas; Selection of cake; Coffee or Tea

Regional Developer: Susan Hopcroft, CPB

Presenter: Myron Simon, Bank of Montreal

Topic: How to Secure Small Business Financing

Non Members are welcome to attend two meetings to evaluate IPBC.

To register for this meeting, contact us at info@ipbc.ca

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WINNIPEG, MB

Date: Monday January 18th, 2010

Time: 6PM to 8:30PM (meetings start and end precisely on schedule)

Location:

Smitty's Restaurant (Polo Park)

1017 St James Street (Corner of Ellice and St. James), Winnipeg, MB

You are responsible for your own meal and beverage

Regional Developer: Charlene Hiebert, CPB

Presenter: Hayley Hodgeson of Lazer Grant

Topic: How to market your practice and increase revenues

Non Members are welcome to attend two meetings to evaluate IPBC

To register for this meeting, contact us at info@ipbc.ca

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CALGARY, AB

Date: Wednesday January 20th, 2010

Time: 6PM to 8:30PM (meetings start & end precisely on schedule)

Location:

ABC Country Restaurant

11520-24 Street SE, Calgary, AB

Each attendee is responsible for his or her own meal and beverage

Regional Developer: Allan Stenbeck, CPB

Presenter: Cidnee Stephens from Strategies for Success

Topic: 7 Steps to Successful Marketing

Non Members are welcome to attend two meetings to evaluate IPBC.

To register for this meeting, contact us at info@ipbc.ca

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EDMONTON, AB

Date: Thursday January 21st, 2010

Time: 6PM to 8:30PM (meetings start and end precisely on schedule)

New Location:

The ABC Country Restaurant, 4485 Gateway Blvd. at the Greenwood Inn, Edmonton, AB

You are responsible for your own meal and beverage- $10 minimum

Regional Developer: Lynn Magnaye, CPB

Presenter: Jay Wilson from Spark- The Branding Shop

Topic: Branding your business on a budget

Non Members are welcome to attend two meetings to evaluate IPBC

To register for this meeting, contact us at info@ipbc.ca

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VANCOUVER, BC

Date: Thursday January 21st, 2010

Time: 6PM to 8:30PM (meetings start and end precisely on schedule)

Location:

ABC Country Restaurant at the Accent Inn

2350 Boundary Road (Boundary & Lougheed Hwy)

--access parking off of Boundary Road

You are responsible for your own meal and beverage

Cost: $20 includes dinner, dessert, and beverage

Regional Developer: Kandice Keith

Presenter: Carl Markwart, CGA & Associate Member of IPBC from McLaren Trefanenko Inc

Topic: Bookkeeping for Non-Profits

You may be a bookkeeper/treasurer for a non-profit, a member, or director. The bookkeeping, accounting, and tax reporting for non-profits has long been neglected in the attention it is due. So many good organizations out there do so much good work. Carl Markwart, CGA with McLaren Trefanenko Inc. CGA's will take you through incorporation, CRA filings, accounting issues, and governance. Come and learn more about this large, quiet industry within Canada in "From beginning...to then..."

Non Members are welcome to attend two meetings to evaluate IPBC

To register for this meeting, contact us at info@ipbc.ca

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TORONTO WEST, ON

Date: Monday January 25th, 2010

Time: 6PM to 9PM (meetings start & end precisely on schedule)

Location:

Lone Star Texas Grill (upstairs meeting room)

930 Dixon Road, Toronto, ON

You are responsible for your own meal and beverage: Fajita Buffet for $21.99 plus tax and gratuity includes the following: Chips and Salsa, House Salad; Chicken, Steak, and Veggie Fajiitas; Sweet Tray; Coffee or Tea

Regional Developer: Susan Hopcroft, CPB

Presenter: Myron Simon, Bank of Montreal

Topic: How to Secure Small Business Financing

Non Members are welcome to attend two meetings to evaluate IPBC.

To register for this meeting, contact us at info@ipbc.ca

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KELOWNA, BC

Date: Tuesday January 26th, 2010

Time: 6PM to 8PM (meetings start and end precisely on schedule)

Location:

Perkins, 2170 Harvey Avenue, Kelowna, BC

You are responsible for your own meal and beverage

Regional Developer: Judy Rheault, CPB

Presenter: Carol-Ann Hillman, Financial Advisor

Topic: Small business planning, including health and disability options and more

Non Members are welcome to attend two meetings to evaluate IPBC

To register for this meeting, contact us at info@ipbc.ca

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KITCHENER, ON

Date: Wednesday January 27th, 2010

Time: 5:30PM to 8PM (meetings start & end precisely on schedule)

Location:

Country Boy Restaurant

5 Manitou Drive, Kitchener, ON

Each attendee is responsible for his or her own meal and beverage

Regional Developer: Cindy Jeary, CPB

Presenters: Jay Harris, CA CIRP & Adam Fisher, CA CIRP; from Harris & Partners Inc.

Topic: Amendments to the Bankruptcy and Insolvency Act

1) Do you know what to tell your clients when they ask about their options about restructuring?

2) Director Liabilities can personally bankrupt you if you are not set up properly to protect yourself!!

3) The insolvency laws have been revamped after 17 years. As advisors of financial matters, it's important to know how these changes may affect your clients.

Non Members are welcome to attend two meetings to evaluate IPBC.

To register for this meeting, contact us at info@ipbc.ca

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NORTH BAY, ON

Date: Wednesday January 27th, 2010

Time: 8:30AM to 10AM (meetings start and end precisely on schedule)

Location:

Canada Brokerlink

591 Main Street East, suite 203, North Bay, On

You are responsible for your own meal and beverage

Regional Developer: Susan Peters, CPB

Presenters: Maria Cadorette and David Betz

David Betz has been an insurance broker for over 23 years. He has achieved the Canadian Accredited Insurance Brokers Designation and is a commercial insurance specialist

Maria has been an insurance broker for over 27 years and has managed her own insurance brokerage for ten years. She is a personal lines specialist.

Topic: Errors and Omissions Insurance

Non Members are welcome to attend two meetings to evaluate IPBC

To register for this meeting, contact us at info@ipbc.ca

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PRINCE GEORGE, BC

Date: Thursday January 28th, 2010

Time: 6PM to 8PM (meetings start and end precisely on schedule)

Location:

A & A Restaurant

15th & Central, Prince George, BC

You are responsible for your own meal and beverage

Cost: $20 includes dinner, dessert, and beverage

Regional Developer: Margaret Ana Fernandez, CPB

Presenter: Dan Boudreau from Riskbusters

Topic: Marketing Tips for small business

Non Members are welcome to attend two meetings to evaluate IPBC

To register for this meeting, contact us at info@ipbc.ca

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Upcoming Meetings

Halifax- no January meeting; TBA for February

Victoria- January 26th; speaker and topic TBA

St. Catharines- January 26th; speaker and topic TBA

Regina- TBA

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National Phone Conference

Wednesday January 13th, 2010 at 11:30 am PT

Amendments to the Bankruptcy and Insolvency Act

1) Do you know what to tell your clients when they ask about their options about restructuring?

2) Director Liabilities can personally bankrupt you if you are not set up properly to protect yourself!!

3) The insolvency laws have been revamped after 17 years. As advisors of financial matters, it's important to know how these changes may affect your clients

Time: 11:30am PT - 12:30pm PT

Cost: The meeting is free; toll charges to access the call will be your responsibility or, you may use a VOIP connection.

Topic: Amendments to the Bankruptcy and Insolvency Act

Presenters: Jay Harris, CA CIRP & Adam Fisher, CA CIRP; from: Harris & Partners Inc.

To make a reservation for this event, please click on the link https://www2.gotomeeting.com/register/804864914

The connection details will be emailed to you automatically

 

 

National Phone Conference

Wednesday January 20th, 2010 at 11:30 am PT

"Understanding Social Media"

This Idea Session focuses on understanding social media, what it is, and how it's connecting people. A focus will be given to understanding what opportunities exist for small business owners to leverage social media for business growth and prospecting.

Topics covered include privacy and control; social media pit falls and super stars; and first steps to social media success. Some tools discussed will be Twitter, Blogs, Facebook, and creating social bookmarks.

Time: 11:30am PT - 12:30pm PT

Cost: The meeting is free; toll charges to access the call will be your responsibility or, you may use a VOIP connection.

Topic: Understanding Social Media

Presenter: Jess Sloss, Communications Strategist at Giant Ant Media and Editor of SocialSquared.com, a daily opinion blog on Business and the Social Web.

SPEAKER BIO:

Jess has had a varied career with a strong theme of entrepreneurship running through it. He started his first company (Cutters Lawn Care) at age 19, eventually selling it 5 years later. His start-up experience includes time in the Architectural Visualization industry and workplace training simulations sector with Vancouver based Real Space 3D. He's currently working on the soon to be launched Farm Digital, a Social Media Support Services division of Giant Ant Media.

Jess speaks regularly to small and medium sized businesses about the shifting media landscape and the opportunity that Social Media has for organizations everywhere.

Holding a Communications degree with minor in Organizational Development from Capilano University, Jess help's Giant Ant Media's diverse group of clients best take advantage of communications opportunities online.

About Giant Ant Media

Giant Ant Media is a Vancouver based creative studio specializing in Video Production and Social Media Strategies. Servicing an amazing group of clients that includes Cossette Communications, Mountain Equipment Co Op, and Timberland's Earth Keeper Heroes, Giant Ant is uniquely positioned to help organizations engage an audience online.

To make a reservation for this event, please click on the link https://www2.gotomeeting.com/register/804864914

The connection details will be emailed to you automatically.

 

 

National Phone Conference- Februay 3rd, 2010

Join us for a special 2 hour webinar on Wednesday February 3rd, 2010 at 11:30am PT

"HST Implementation for Ontario & British Columbia"

Time: 11:30am PT - 1:30pm PT

Cost: The meeting is free; toll charges to access the call will be your responsibility or, you may use a VOIP connection.

Topic: HST Implementation for Ontario & British Columbia

· Why Harmonize - making Ontario & British Columbia more competitive

· The Tax Base - what does HST apply to?

· Registration, administration and filing

· ITC Restrictions - for large businesses

· Impact on Budget/ Bottom Line

Presenter: Garth Steele from Welch LLP, Chartered Accountants

SPEAKER BIO:

Garth Steele is a Partner with Welch LLP, Chartered Accountants in Ottawa. In addition to heading up the firm's commodity tax practice, Garth also provides accounting and tax advice to a number of owner-managed businesses and regional public service bodies.

Garth is a tutorial leader and instructor for the CICA's In-Depth GST Course as well as an instructor for the ICAO's annual Professional Development program. Garth has also presented several papers at the CICA's annual Commodity Tax Symposium.

To make a reservation for this event, please click on the link https://www2.gotomeeting.com/register/812556810

The connection details will be emailed to you automatically.

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Upcoming National Phone Conferences:

February 17th- Replace your client's Paper Cheques with Electronic Payments using TelPay

As a busy bookkeeping professional, you know the convenience of paying your personal bills electronically--are you taking full advantage of the seamless integration between Simply Accounting, Quickbooks, and TelPay that enables you to save your clients time and money? Presenter: Marilyn Benninger, CGA, Vice President, Business Services, TelPay Incorporated

March 17th- Human Resources Issues; presented by Joan Noel of Lightcycles Coaching

April 21st- Brand Me! presented by Matthew Peterson of Accounting Cycle

 

 

clapping peopleNew Members

IPBC welcomes the following members who joined us in December:

Alberta

Devon Daniels, Calgary

Connie Ellis, Calgary

Hatem Baccari, Calgary

Nancy Boyle, Edmonton

Robert Jensen, Slave Lake

Trish Svensen, Airdrie

British Columbia

Alicia Arnold, Langley

Ken Jaschke, Kelowna

Maggie Geiser, Vancouver

Cheryl Obermeier, Vernon

Manitoba

Shelley Baker, Winnipeg

Nova Scotia

Elizabeth Reynolds, Middle Musquodoboit

Ontario

Tania Hynes, Brampton

Mark Lelievre, Niagara Falls

Kristopher McEvoy, St. Catharines

Betty Thompson, New Lowell

Lucie Kremer, Angus

Claude Lefebvre, Garson

 

 

clapping peopleCongratulations to Our Newest CPB Grads

IPBC congratulates the following members who became Certified Professional Bookkeepers in December:

Alberta

Joanne Williams, CPB, Tofield

Audra Rowbotham, CPB, Red Deer

Vanessa Lyons, CPB, Calgary

British Columbia

Bineshwar Singh, CPB, Burnaby

Lisa Stretton, CPB, Powell River

Manitoba

Cindy Pelletier, CPB, WInnipeg

New Brunswick

Susan Bennett, CPB, Lincoln

Ontario

Marie Brook, CPB, Nottawa

 

 

Partner Spotlight- OnPoint Software

OnPoint Software Training Solutions offers easy access to Quickbooks 2009 training courses over the internet from the comfort of your home or office.

IPBC members are entitled to special discounts -- log in for details.

www.onpointsoftwaretraining.com

 

 

blkwht hand seedWords to Inspire

A happy person is not a person in a certain set of circumstances but rather a person with a certain set of attitudes.

--Hugh Downs

 

 

Do you have a Website?

If you are an IPBC member, you should proudly be displaying the IPBC logo along with a link, so your visitor can learn a little about your professional association. Membership in IPBC gives you an edge over your competition.

Show the world that you belong to a professional association for professional bookkeepers by adding a short informational video about IPBC to your signature line in your email program. The link, entitled 'View this short informational video about IPBC' is found below.

In Outlook, click 'Tools', followed by 'Options', 'Mail format', 'Signatures', and 'New' or 'Edit', depending if you already have a signature. Then copy and paste the link, "View this short informational video about IPBC", into this spot. Click 'OK'.

Feel free to contact us at info@ipbc.ca with any questions.

 

 

Do you have a story to share, or words of wisdom?

The purpose of the IPBC newsletter is to assist Canadian bookkeepers with tools, ideas, and resources to make your business efforts easier, and to help your business grow by delivering timely and thoughtful information. Do you have a story to share? Words of wisdom? Pass them along to us.

Email karenl@ipbc.ca

View this short informational video about IPBC

 

 

IPBC makes every effort to ensure that all content is correct, however,
IPBC recommends independent verification before acting on the information contained herein.

© Copyright 2010-All Rights Reserved Institute of Professional Bookkeepers of Canada (IPBC) You are encouraged to share this newsletter with your friends and associates as long as you do not change it in any way.

 

Institute of Professional Bookkeepers of Canada


email: info@ipbc.ca

phone: 1-866-616-IPBC (4722)

 

 

 

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