 Scott Park, CPA, CA
A new standard for compilation engagements called Canadian Standard on Related Services (CSRS) 4200, Compilation Engagements has been issued by the Auditing and Assurance Standards Board of Canada. This new standard is a significant update to what was previously called a “Notice to Reader” engagement and is effective for compiled financial information for periods ending on or after December 14, 2021. The new standard will affect the work we do for you when you engage us to help you complete your year end financial statements and related tax return. Following the new standard will require us to spend more time on your year end. The standard setters believe that the changes they have made will help users of compiled financial information have a better understanding of the level of work we have performed as well as the underlying basis of the compiled financial information presented.  Scott Park, CPA, CA Many Canadians, especially self-employed individuals, have recently received a letter from the Canada Revenue Agency (CRA) indicating that they may not be eligible for the Canada Emergency Response Benefit (CERB) that they received and encouraged the recipient of the letter to repay the CERB amounts before December 31, 2020. This has caught many Canadians off-guard and has them very worried about making CERB repayments with money that they don’t have.  Scott Park, CPA, CA
If you are someone that already donates to charities, good on you. But instead of cash, if you hold shares on which you have capital gains, you should be aware of the tax benefit of donating shares. Philanthropy and tax planning go hand in hand.  Scott Park, CPA, CA
When there is a Canadian estate and all of the beneficiaries are residents of Canada, the administration and settlement of that estate is generally straightforward. However, when there is a non-resident beneficiary (e.g. someone that lives in the US), this creates additional tax issues for the executor to deal with. New Requirements for Tracking Corporate Ownership Information of Federally Incorporated Companies6/14/2019
 Scott Park, CPA, CA
The federal government has implemented changes to the Canada Business Corporations Act (“CBCA”), which come into effect June 13, 2019 for federally incorporated companies. The CBCA sets out criterion for identifying individuals who have significant control over a corporation. It also sets out a requirement for corporations that meet certain criteria to keep a register of these individuals. The purpose of these beneficial ownership registers is to offer better corporate transparency to strengthen Canada’s anti-money laundering regime.  Scott Park, CPA, CA
It is very common for start-up companies to have to incur upfront costs for leasehold improvements or renovation costs on a store front or an office space even before they officially open their doors to the public. For businesses in the start-up phase, cash flow may be very tight, therefore every cent counts. It is important to for new business owners to be aware of the topic of GST and how it can positively impact their business from a cash flow perspective.  Scott Park, CPA, CA
For most businesses, there comes a point when it’s time to hire a professional to handle the financial function of your business operations. If you are at this point in your business, then congratulations! You have grown your business to the stage where you should be handing off some of those hats you wear as a business owner. Although your initial thought may be to hire a full-time or a part-time bookkeeper, a smarter decision may be to outsource your bookkeeping needs to a team of professional accountants. Here are the top reasons why you should consider outsourcing your accounting and tax needs to a professional accounting firm.  Scott Park, CPA, CA
Why It Matters There may be a temptation among business owners to label a worker as an independent contractor instead of an employee. Paying a worker as a contractor would provide a business owner with less paperwork and administration ease in the short-term, but it could lead to very costly consequences on unremitted payroll taxes, CRA penalties, Worksafe BC insurance premiums, benefits, and severance later on. The best advice is to get it right at the beginning to avoid future issues.  Scott Park, CPA, CA
Many Canadians typically start their own business as a sole proprietorship. This form of business is quite common because it’s the simplest way to structure a business while minimizing costs. As the business grows, the topic of incorporating the sole proprietorship becomes something to think about. Here’s what you need to know when converting your sole proprietorship business into a corporation, which could save you thousands of dollars in taxes.  Scott Park, CPA, CA
For many new entrepreneurs and start-ups, the decision to incorporate a business is an exciting yet potentially daunting step to take. The goal of every business owner is to hopefully make a profit, but let’s face it, the start-up capital or money needed to fund the operations of the business when things get started may be a little tight. This typically forces the business owner to do things on their own to get things done even when they are out of their comfort zone or area of expertise. As a business owner, having a strong work ethic and do-it-yourself mentality is certainly a good thing; however, when it comes to something as important as properly incorporating your business it is best to avoid the pitfalls of doing it yourself. The problems can be fixed, of course, but not without time, effort and money. Here are some of the common mistakes to avoid when incorporating. |
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