BGK's newsletter published for clients and friends:
 

Ontario Budget - March, 2008

Quebec Budget - March, 2008

Federal Budget - February, 2008

Year End Tax Planning - November, 2007

News and Views - October, 2007

Ontario Budget - March, 2007

Federal Budget - March, 2007

Quebec Budget - February, 2007

Year End Tax Planning - November, 2006

Federal Budget - May, 2006

Quebec Budget - March, 2006

Year End Tax Planning - November, 2005 - Acrobat Format

Quebec Budget  - April 21, 2005 - Acrobat Format

Federal Budget  - February 23, 2005 - Acrobat Format

Year End Tax Planning - November, 2004 - Acrobat Format

Quebec Budget  - March 30, 2004 - Acrobat Format

Federal Budget  - March 23, 2004 - Acrobat Format

Year End Tax Planning - October, 2003 - Acrobat Format

Taxable Benefits - January 2003 - Acrobat Format


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TAX TIPS

LOGBOOK FOR EMPLOYEES WHO USE AN AUTOMOBILE MADE AVAILABLE BY THE EMPLOYER - QUÉBEC REQUIREMENTS

Effective 2005, an employee (or a person related to the employee) who uses an automobile made available for a given year by the employer must keep a logbook for recording kilometrage and other pertinent information. The employee must remit a copy of the logbook to the employer by the prescribed deadline, and may be fined $200 for failing to do so.

If an employer makes an automobile available to an employee (or to a person related to the employee), the employee is required to keep a logbook for recording the trips made with the automobile and to give the employer a copy of the logbook not later than

• January 10, 2006, if the automobile was available to the employee on December 31, 2005; or

• the tenth day following the date on which the automobile was returned to the employer.

The following information is to be entered in the logbook:

• the total number of days in the year during which the automobile was made available to the employee (or to a person related to the employee);

• the total number of kilometers traveled during the total number of days referred to above (indicated on a daily, weekly or monthly basis); and

• the identification of the place of departure and the place of destination, the number of kilometers traveled between those two places, and any information necessary to establish that the trip was made in connection with the employee’s duties (indicated on a daily basis, for each trip made with the automobile in connection with the employee’s duties).

  Penalty

  An employee who fails to give the employer a copy of the logbook for an automobile made available to him or her (or to a person related to the employee) within the time specified is liable to a penalty of $200.

Proposed Amendment to the Fairness Provisions under the Income Tax Act

TAX CREDIT WITH RESPECT TO THE REPORTING OF TIPS

The Quebec government provides a refundable tax credit to employers who make contributions in respect of source deductions on tips received by employees. The contributions that give rise to this refundable credit are those paid to the Quebec Pension Plan, the Health Services Fund, Employment Insurance, Commission des normes du travail and the Commission de la sante et de la securite. For 2004, 87.5% of the contributions will give rise to the credit.

TAX CREDIT RESPECTING HOME-SUPPORT SERVICES FOR SENIORS

Seniors, aged 70 or older can benefit from a refundable tax credit equal to 23% of expenses paid to obtain certain home support services. This credit may be obtained in advance and can be used to reduce the cost of the service obtained. The credit for services is in respect of daily activities, meal preparation, and routine household tasks.
The eligible expenses are limited to $12,000 per year, for a credit of $2,760. In the case of a couple, each of the spouses will be eligible for a maximum tax credit of $2,760 for their respective expenses. The senior must allow for the government to withdraw the money from their bank account to pay the expenses and is required to file a tax return indicating the amount of the tax credit granted in advance during the year.

INCORPORATION OF PROFESSIONALS

Chartered accountants are now entitled to exercise their professional activities through a corporation. Other professionals, such as doctors, lawyers and notaries may be entitled in the near future to permit incorporation. The use of a corporation will allow professionals to benefit from the low corporate tax rate and defer tax on funds reinvested in the corporation. The use of a corporation may also facilitate income splitting with a spouse and children.

NEW RULES ACCELERATE TAX ON FOREIGN INVESTMENTS

For tax years beginning after 2002, if you or a company own certain types of foreign investments or have an interest in an offshore trust, new rules introduced by the Department of Finance may apply to these investments. These new rules are meant to tax income from passive offshore investments, that would not normally be taxed until repatriated back to Canada, on an annual basis. The new rules are extremely complex and professional advice should be sought if it appears these rules may apply in your situation.

EXCESS FOREIGN TAXES

The general rate on income taxes withheld on foreign source income such as interest, dividends, or pensions may be reduced by a tax treaty between Canada and the source country.
A recent Tax Court decision confirmed that any taxes paid by a Canadian Taxpayer in excess of the treaty-reduced rate is not available for the claim of the foreign tax credit. Thus taxpayers should ensure that they only pay the withholding rate in accordance with the Treaty.