------TAX AND ACCOUNTING NEWS - DECEMBER 2009

CRA Interest rates CRA IMPORTANT DATES

The Revenue Agency (CRA) announced the prescribed annual interest rates that will apply to any amounts owed to the CRA and to any T4/T4A Slips & Summary amounts the CRA owes to individuals and corporations. These rates are calculated quarterly in accordance with applicable legislation and will be in Last day of February, 2010 effect from January 1, 2010 to March 31, 2010. (March 1, 2010)

The interest rate charged on overdue taxes, Canada Pension Plan contributions, and Employment Insurance premiums will be 5%. T5018 – Subcontractors payment The interest rate paid on overpayments will be 3%. Information returns have to be The interest rate used to calculate taxable benefits for employees and filed within six months after shareholders from interest-free and low-interest loans will be 1%. the end of the reporting period. If the reporting period is December 31, 2009 you Harmonized have to filed before June 30, 2010 British Columbia (B.C.) has signed a Memorandum of Agreement (MOA) with the that provides the framework for the introduction of a harmonized sales tax (HST) in B.C. The proposed HST would come into T5 Slips and Summary effect on July 1, 2010 at the rate of 12%. B.C. would use the same tax base and structure as the GST. The HST in B.C. would be administered by CRA. Last day of February, 2010 (March 1, 2010) eBay sellers RRSP contribution As a result of a Federal Court of Canada decision, eBay Canada has provided the CRA with names of eBay sellers as well as their contact information and March 1, 2010 sales records. December 31, 2009 is you To avoid paying these fines and penalties, taxpayers who have failed to file turning 71 years of age income tax returns for past years or who have not reported all their income can voluntarily correct their tax situation. 2009 Personal income tax In fact, under the Voluntary Disclosures Program (VDP), taxpayers who take the initiative to correct or disclose any information will not be penalized or April 30, 2010 prosecuted if they make a full disclosure before the CRA starts any audit or other compliance action. June 15, 2010: Self-employed However, if you have a Home Renovation Tax Credit (Deadline) balance owing for 2009, you still have to pay it on or The non-refundable Home Renovation Tax Credit (HRTC) is based on eligible before April 30, 2010 expenses for work performed or goods acquired after January 27, 2009, and before February 1, 2010. The tax credit is up to $1,350.

QuickBooks 2010

QuickBooks Messenger with chat room can be use when QuickBooks is open. T5013 Partnerships

QuickFilter to sort in Customers & Vendors information. You can just type the All partners are individuals: text you’re looking for into the search box and find the best-matched results fast. Most partnerships will file by March 31, 2010 Need help with QuickBooks? Now you can get it directly from within the product using the QuickBooks LiveCommunity, which is filled with contributions from QuickBooks users & experts. So if you're having trouble customizing your Profit & Loss Report, you can get specific help with exactly that... from people who've been through it.

New security and permission levels can prevent others from accessing your All partners are customers’ address or credit card info. New permission levels for some user corporations: like the external accountant. Introduction of “challenge question” for user that forget their password. Information Return no later than five months after the end QuickBooks 2010 allows all users to run reports, backup data and even work of the partnership’s fiscal on the same data, all at the same time now. So there’s no more need to ask to period. another user to close of QuickBooks anymore.

PARTNERSHIP CRA SR&ED Seminars

A partnership is a type of business entity in which partners (owners) share with In January and March, 2010. each other the profits or losses of the business. Partnerships are often favored CRA presents seminars for over corporations for taxation purposes, as the partnership structure does not claimants who are new to the generally incur a tax on profits before it is distributed to the partners. If there is program or planning on filing no business in common, there is no partnership. For instance, co-ownership a claim. Pre-registration is of a rental property as an investment does not in itself constitute a partnership. required. For information: Tel: 403-691-5890 Partnerships usually allocate income, gains, losses, deductions, credits, and other amounts among the partners according to the terms of the formal partnership agreement. They can deduct losses in the fiscal period to which they relate.

Alberta is maybe the province where individuals and corporations use most of partnership. Especially, Oil and gas sector.

Registered Charities v. Non-Profit Organizations

CRA has updated its Web site www.cra-arc.gc.ca/tx/chrts/pplyng/rgstrtn/rght- eng.html and sets out a chart highlighting the differences between a registered charity and non-profit organization. CRA notes the following: “ A charity must apply for charitable registration with the CRA, if the charity wants to become exempt from paying income tax and/or to issue official donation receipts.

CRA notes the following: “ If an organization meets the definition of a Charity”, it cannot be considered a non-profit organization under the Income Tax Act, even if the organization is not registered or cannot be registered as charity. An organization may meet one definition or the other, but not both”

Tax-Free Savings Accounts (TFSA)

The 2008 federal Budget introduced the Tax-Free Savings Account (TFSA) available to individuals starting in 2009. Financial institutions currently eligible Note: Better to discuss this matters with you accountant. to issues RRSPs are permitted to issue TFSAs. ABLC LLP. can not accept any

liability for the consequences Starting in 2009, individual 18 years of age and older acquire $5,000 of TFSA that may result from acting contribution room each calendar year. Unused contribution room will be carried based on the contents hereof forward to future years.