January 24, 2008

Ontario Businesses Ring In The New Year With Tax Breaks

The McGuinty government is strengthening Ontario's economic advantage by providing a series of tax breaks for businesses that will take effect January 1, 2008. In the 2007 Economic Outlook and Fiscal Review, the government proposed new tax initiatives that would provide $1.1 billion in provincial tax relief for businesses over three years. The measures would further enhance Ontario's tax competitiveness and stimulate growth through increased investment and job creation.

Areas, such as manufacturing, forestry, agriculture and tourism, face serious challenges," said Finance Minister Dwight Duncan. "To support these sectors and all of Ontario's businesses, we've proposed a number of tax breaks - some are retroactive to January 2007 while others will begin in the New Year."

Tax breaks taking effect January 1, 2008, include:

• Eliminating the Capital Tax for businesses primarily engaged in manufacturing and resource activities;
• Increasing the Ontario Film and Television Tax Credit rate to 35 per cent from 30 per cent;
• Increasing the Ontario Production Services Tax Credit rate to 25 per cent from 18 per cent.

Some of the proposed tax reductions are retroactive to January 1, 2007, including:

• Providing a 21-per-cent Capital Tax rate cut for all businesses retroactive to January 1, 2007, on the way to full elimination in 2010;
• Increasing the small business deduction threshold to $500,000 from $400,000 - retroactive to January 1, 2007.

For more information, see the Government of Ontario Budgets website.

Prism Business Training Corporation

"Providing Simply Accounting by Sage Training Solutions - Live and Online"

Prism Business Training Corporation provides individuals and businesses with a working knowledge of internal accounting systems, accounting software and small business compliance.

Prism develops material specifically to meet the needs of small business owners, employees, accountants and accounting consultants, providing the knowledge base and requirements unique to each entity.

Prism presents precise, in-depth, user friendly training, allowing participants to gain the knowledge required to implement what they have learned in their daily business life.

IPBC members receive a 10% discount on training through Prism's mail in rebate program and 1 free webinar.

Learn more here

Online Pre-Budget Consultations for Budget 2008

The Government has launched an online budget consultation process. They are seeking your answers to these following questions:

• What steps should the Government take in Budget 2008 (and beyond) to ensure that Canada is prepared to deal with the implications of an aging population?
• Should the Government be implementing broad- based policies that will help all sectors of the economy to succeed or should it focus on developing policies to assist specific industries facing special challenges?
• In what areas should the Government focus its resources in Budget 2008 (and beyond)? If resources need to be redirected from other areas, what areas should these be?
• What steps should the Government take in Budget 2008 (and beyond) to ensure that the Canadian economy remains internationally competitive, continues to attract investment and creates high value- added jobs?
• What tax and other measures should the Government take to ensure that Canada keeps its best and brightest, attracts highly skilled immigrants, encourages as many people as possible to enter the workforce, and rewards Canadians for their hard work, while respecting the Government's fiscal goals?
• What other issues would you like to address?

You may participate in this consultation by February 11, 2008.

Join the budget consultation here

Tip of the Week

ATM Cards For Your Business

Save time by using pre-printed deposit books and an ATM card to make your business deposits Every moment you save doing your bookkeeping chores is time you can spend building your business! Remember - staple the bank machine receipt to the deposit record in your deposit book.