3rd edition of 2009

February 16th, 2009

IN TIME FOR TAX SEASON

Taxable Benefits that pack a punch

Don't forget to look for inventory sold to shareholder's relatives at cost. Not only should the proceeds on sale be bumped up to fair market value under Income Tax Act (ITA) S. 69(1)(b), but there is a shareholder benefit under ITA S. 15(1).

Record shareholder benefits on a T4A in Box 28 - Other income and yes, there is no code for shareholder benefits for either S. 15(1) or S. 15(2). There are those at CRA who will tell you to just put it on Line 130 on the shareholder's T1, but if you don't prepare the T1, that income amount is not likely to be remembered without a T-Slip.

There is a code for shareholder benefit for ITA S. 80.4(2) interest imputed on shareholder loans which is reported in Box 28 and in Box 38 you enter Code 17.

How can you see those sections of the Income Tax Act quoted above?

First, go to the Income Tax Act, Table of Contents (smaller/faster linking) on the Justice Department website:

http://laws.justice.gc.ca/en/ShowTdm/cs/I-3.3///en

Then note this Specific section linking:

http://laws.justice.gc.ca/en/I-3.3/section-[section-no].html

To make a link to a particular section of a statute, replace the [section-no] placeholder in the model link with the desired section number; Note: do not include subsection numbers.

Example: Inadequate consideration, S. 69 is found here:

http://laws.justice.gc.ca/en/I-3.3/section-69.html

Replace the 69 with a 15 or an 80.4 to see the other sections referenced above.

Happy T4 season!

Eileen Reppenhagen, CGA, ACG, CL

www.taxdetective.ca

.

News for Ontario Accounting Professionals

Filing and paying Ontario business taxes just got easier

Whether it's ordering supplies, interacting with business partners or banking online, Ontario businesses are relying on the Internet now more than ever for fast and convenient self-serve options.

The Ontario Ministry of Revenue is excited to join this new norm in service delivery with the introduction of a new online tax service for businesses and their tax representatives called ONT-TAXS online.

ONT-TAXS online is convenient, secure and free. It saves time and money, reduces paper and is available 24 hours a day, seven days a week.

Businesses and tax representatives are often faced with the burden of government paperwork, line-ups and inconvenient business hours. With ONT-TAXS online your schedule is our schedule.

Businesses can now enjoy the ease and convenience of online access to their Ontario business tax information where and when they need it. Businesses also have the flexibility of assigning an employee or tax representative access to use ONT-TAXS online on their behalf. This means that they can spend more time doing what they do best - running their businesses.

André Rieser, Rockview Camp, Callander, ON

André is the sole proprietor of a Northern Ontario small business in the tourism sector.

"As the owner and operator of a small business I don't have time for complications when it comes to doing my business taxes. I'm constantly looking for ways to simplify, eliminate or avoid duplication of administration; I want quick and easy access to my tax information as well as to information and documentation in relation with my taxes. ONT-TAXS online is a modern and practical solution for businesses like mine and means fewer hassles when they file their taxes."

Tax representatives also benefit from ONT-TAXS online with one-window access to their client's tax or payroll information online. With just one user ID and password they are able to manage all of their client's tax information in ONT-TAXS online.

Pierre Bocti, F.C.G.A.

Pierre is Vice President of Taxation at Hewlett-Packard (Canada) Co.

"Businesses in Ontario respect the law and spend a lot of their valuable resources on tax compliance every year. With ONT-TAXS the government is telling businesses that they speak their language; they are giving us the level of service that we give our customers every day, that's showing respect for the taxpayer."

Security is always top of mind when using the Internet. ONT-TAXS online uses one of the most secure forms of government technology to protect our tax clients' information. It's just as secure as the Internet banking service offered by North American financial institutions.

In an increasingly paperless environment, the Ministry of Revenue also recognizes that sending returns to tax clients who remit online is not environmentally friendly or cost effective. With ONT-TAXS online tax clients can now ask the ministry to 'stop the paper' if they choose to file online - so even the environment benefits!

ONT-TAXS online is just one way the province is making things easier, faster and more convenient for Ontario businesses.

Visit ontario.ca/revenue to learn more about ONT-TAXS online and other initiatives underway at the Ministry of Revenue that provide better service and a more streamlined and simplified tax administration.

Save your business time and money!

Use ONT-TAXS online for convenient access to Ontario Retail Sales Tax and Employer Health Tax accounts to:

· File tax returns

· Make tax payments including post-dated payments

· Assign employees or tax representatives access to use ONT-TAXS online on behalf of your business

· View up to four years of account history · Update account information such as addresses or trade names

· Request a refund of overpayment of tax Getting started with ONT-TAXS online is fast and easy!

Are you a business?

Visit ontario.ca/revenue and select Get Started

Complete our online form

When you receive your two pieces of security information in the mail you are ready to start using ONT-TAXS online

Are you a tax representative?

Call us at 1 866 ONT-TAXS(1 866 668-8297) to sign up for ONT-TAXS online

When you receive your two pieces of security information in the mail you are ready to set up your access to ONT-TAXS online

Then, ask your clients to go to ONT-TAXS online and add you as their tax representative

Ministry of Revenue

ontario.ca/revenue

1 866 ONT-TAXS (1 866 668-8297)

How are you taking advantage of your IPBC membership?

Certified Professional Bookkeeper member Maria Chovaz of Guelph, ON, has her credentials up front and center. Click on the link below to check out her website.

When asked to comment on being a member of IPBC, here is what Maria said:

"Being an IPBC member has given me a leading edge in my community as a credible professional in my field. As a CPB Certified Professional Bookkeeper, I am able to charge out an hourly rate that is above the average rate for bookkeeping services in this area".

http://www.completebookkeeping.ca/about.html

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.

UPCOMING MEETINGS

Regional meetings are being organized in Vancouver, Edmonton, Windsor, Ottawa, Toronto, Calgary, Guelph, Halifax, and Truro, NS. If you are interested in facilitating a meeting in your area, please email info@ipbc.ca for an information package. Please include your full contact details.

Upcoming Meetings

EDMONTON, ALBERTA

Date: February 19th, 2009

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

Location: The Business Link

Boardwalk Place, #100, 10237-104 Street, Edmonton AB, T5J1B1

Facilitator: Jacqeline (Bernal) Andriet

Topic: Business services and tour of The Business Link --"No matter what stage of business you're at, or where you live in the province...The Business Link is your first stop for business information and service in Alberta." Find out about their seminars and brown bag sessions, business library, e-business and the internet, the global marketplace, start-up, incorporation, financing, and so much more.

Sponsored by the Government of Canada and the Government of Alberta

To register, please send an email to info@ipbc.ca

HALIFAX/DARTMOUTH, NOVA SCOTIA

Date: Feb 20, 2009

Location: Quality Inn Dartmouth

313 Prince Albert Road, Dartmouth, NS B2Y 1N3

Ph: (902) 469-5850

Time: 6:30 PM

Name of Speaker: Sharon Skaling

Title: President

Speakers Company: Total You

Website: www.totalyou.ca

Topic: Total You - More than personal branding

To register, please send an email to info@ipbc.ca

OTTAWA, ONTARIO

Date: Wednesday, Feb 25, 2009

Time: 6:30 PM - 8:30 PM

Location: D & A Business Management Solutions Boardroom, 1010 Polytek, Unit 5, Ottawa, ON

Facilitator: Gayle Young

Presentation by: Sophie Anne Seguin, RIBO | Marsh Canada Ltd.

Topic: Errors & Omissions Insurance: Why it is important to you

To register, please send an email to info@ipbc.ca

Meetings in the works:

Guelph,ON- being planned for early in May

Victoria, BC- being planned for early in March

Kelowna, BC- being planned for early in April

Calgary, AB- month to be advised soon (will probably be April or May)

Meetings are starting soon in the following cities:

Oshawa,ON

Sudbury,ON

Winnipeg,MB

Words to inspire

"...by stretching yourself beyond your perceived level of confidence you accelerate your development of competence. "

Author: Michael Gelb and Tony Buzan Source: Lessons from the Art of Juggling; How to Achieve Your Full Potential in Business, Learning and Life by Michael Gelb and Tony Buzan

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.

View this short informational video about IPBC

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 to: karenl@ipbc.ca