2nd edition of 2009

January 15th, 2009

Minister of Finance Releases Discussion Paper on Private Pensions

The Honourable Jim Flaherty, Minister of Finance, today released a discussion paper on improving the framework for federally regulated private pension plans.

"The Government acted in the Economic and Fiscal Statement to provide temporary solvency relief to federally regulated pension plans that have been affected by the substantial declines in equity markets," said Minister Flaherty. "The purpose of this paper is to get the views of Canadians on issues related to the legislative framework for federally regulated defined benefit and defined contribution pension plans with the objective of making permanent changes in 2009."

The federal Government regulates private pension plans that are subject to the Pension Benefits Standards Act, 1985. These plans cover areas of employment under federal jurisdiction, including banking, telecommunications and inter-provincial transportation.

These plans currently represent 7 per cent of all private pension plans in Canada, accounting for approximately 12 per cent of pension assets.

The discussion paper, titled Strengthening the Legislative and Regulatory Framework for Private Pension Plans Subject to the Pension Benefits Standards Act, 1985, can be viewed on the Department of Finance website at www.fin.gc.ca. The department welcomes the views of Canadians on this issue. On-line submissions can be addressed to pensions@fin.gc.ca and will be accepted until midnight, March 16, 2009.

In addition, a series of national consultation meetings will begin in March, with details to be announced in the coming weeks.

Minister Flaherty said the Government will also consult with provinces and territories, which also regulate pension plans. To this end, a federal-provincial working group of senior officials has been established to discuss pension issues, which will provide opportunities for information sharing.

--Government of Canada

.

Government Announces 2009 Automobile Deduction Limits and Expense Benefit Rates for Business

The Honourable Jim Flaherty, Minister of Finance, announced at the end of 2008 that the automobile expense deduction limits and prescribed rates for the automobile operating expense benefit that applied in 2008 will apply in 2009.

Specifically:

* The ceiling on the capital cost of passenger vehicles for capital cost allowance (CCA) purposes will remain at $30,000 (plus applicable federal and provincial sales taxes) for purchases after 2008. This ceiling restricts the cost of a vehicle on which CCA may be claimed for business purposes.

* The limit on deductible leasing costs will remain at $800 per month (plus applicable federal and provincial sales taxes) for leases entered into after 2008. This limit is one of two restrictions on the deduction of automobile lease payments. A separate restriction prorates deductible lease costs where the value of the vehicle exceeds the capital cost ceiling.

* The maximum allowable interest deduction for amounts borrowed to purchase an automobile will remain at $300 per month for loans related to vehicles acquired after 2008.

* The limit on the deduction of tax-exempt allowances paid by employers to employees using their personal vehicle for business purposes for 2009 will remain at 52 cents per kilometre for the first 5,000 kilometres driven and 46 cents for each additional kilometre. For the Yukon Territory, Northwest Territories and Nunavut, the tax-exempt allowance will remain at 56 cents for the first 5,000 kilometres driven and 50 cents for each additional kilometre.

* The general prescribed rate used to determine the taxable benefit relating to the personal portion of automobile operating expenses paid by employers for 2009 will remain at 24 cents per kilometre. For taxpayers employed principally in selling or leasing automobiles, the prescribed rate will remain at 21 cents per kilometre.

The additional benefit of having an employer-provided vehicle available for personal use (i.e., the automobile standby charge) is calculated separately and is also included in the employee's income. The Government reviews these rates and limits annually, and announces any planned changes prior to the end of the calendar year. This practice ensures that businesses are aware of the new rates before the beginning of the year in which they apply.

--Government of Canada

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.

UPCOMING MEETINGS

Regional meetings are being organized in Vancouver, Edmonton, Windsor, Ottawa, Toronto, 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.

Next Regional Meeting

Facilitator: Angela T Franklin

Date of Regional Meeting: Jan 16, 2009

City: Dartmouth/Halifax Regional Municipality

Location: Quality Inn Dartmouth

313 Prince Albert Road, Dartmouth, NS, B2Y 1N3

Ph:(902) 469-5850

Time of meeting: 6:30 pm

Name of Speaker: Miles T Sweeney, B. Comm., CA

Title: President

Speakers Company: Miles T Sweeney Limited Chartered Accountants

Topic: Preparing Year ends for Accountants with both Manual and computerized systems

Words to inspire

To climb steep hills requires a slow pace at first.

--Shakespeare

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