What’s the difference between Tax Preparer & Tax Planner?
A Tax Preparer is someone who helps you to file your tax return for income that you have earned and expenses that have already incurred in the previous year.
While a Tax Planner is someone who works with you to reduce your taxes and save your money for the current year.
If you want to save money, find a Tax Planner!
Either way, you have to be careful in choosing a preparer or a planner. Especially in this tax season, there are people who may know a little bit about tax but call themselves as tax experts.
If you are a business owner, I recommend you to find a tax planner that has the experience, knowledge and receive advanced tax training. They should guarantee the accuracy of their work and willing to assist you in a CRA audit.
Wednesday, February 18, 2009
Wednesday, February 11, 2009
2009 Tax System Indexation
On January 1, 2009, all indexed personal income tax amounts, including tax bracket thresholds and amounts used to calculate non-refundable tax credits, were adjusted by 2.5%.
The Canada Child Tax Benefit and the goods and services tax credit will take effect July 1, 2009.
For 2009 the federal tax bracket thresholds are:
- 22% for taxable income above $38,832;
-26% for taxable income above $77,664; and
-29% for taxable income above $126,264.
The Canada Child Tax Benefit and the goods and services tax credit will take effect July 1, 2009.
For 2009 the federal tax bracket thresholds are:
- 22% for taxable income above $38,832;
-26% for taxable income above $77,664; and
-29% for taxable income above $126,264.
Thursday, February 5, 2009
Rates & Maximums Chart
CPP/QPP—2009
Year’s Maximum Pensionable Earnings $46,300.00
Year’s Basic Exemption (by pay period type):
- Annual $3,500.00
- Monthly (12) $291.66
- Semi-Monthly (24) $145.83
- Bi-Weekly (26) $134.61
- Weekly (52) $67.30
Maximum Contributory Earnings $42,800.00
Contribution Rate—Employee/Employer 4.95%
Contribution Rate—Self-Employed 9.9%
Maximum Contribution—Employee/Employer $2,118.60
Maximum Contribution—Self-Employed $4,237.20
EMPLOYMENT INSURANCE—2009
Maximum Annual Insurable Earnings $42,300.00
Premium Rate (Employee) 1.73%*
Premium Rate (Employer, 1.4 x Employee) 2.42%*
Annual Maximum Premium (Employee) $731.79*
Annual Maximum Premium (Employer) $1,024.51*
*Unless a reduced premium rate applies
TD1—PERSONAL TAX CREDIT RETURN (FEDERAL)—2009
Basic Personal Amount $10,100.00
Eligible Dependant or Spouse or Common-Law Partner Amount $10,100.00
Canada Child Tax Benefit-Base Benefit $1,340.00
Pension Income Amount $2,000.00
Age 65 Amount $5,408.00
Disability Amount $7,196.00
Caregiver Amount or Infirm Dependant Amount $4,198.00
Education Amount—Full Time $400.00/month
Education Amount—Part Time $120.00/month
Year’s Maximum Pensionable Earnings $46,300.00
Year’s Basic Exemption (by pay period type):
- Annual $3,500.00
- Monthly (12) $291.66
- Semi-Monthly (24) $145.83
- Bi-Weekly (26) $134.61
- Weekly (52) $67.30
Maximum Contributory Earnings $42,800.00
Contribution Rate—Employee/Employer 4.95%
Contribution Rate—Self-Employed 9.9%
Maximum Contribution—Employee/Employer $2,118.60
Maximum Contribution—Self-Employed $4,237.20
EMPLOYMENT INSURANCE—2009
Maximum Annual Insurable Earnings $42,300.00
Premium Rate (Employee) 1.73%*
Premium Rate (Employer, 1.4 x Employee) 2.42%*
Annual Maximum Premium (Employee) $731.79*
Annual Maximum Premium (Employer) $1,024.51*
*Unless a reduced premium rate applies
TD1—PERSONAL TAX CREDIT RETURN (FEDERAL)—2009
Basic Personal Amount $10,100.00
Eligible Dependant or Spouse or Common-Law Partner Amount $10,100.00
Canada Child Tax Benefit-Base Benefit $1,340.00
Pension Income Amount $2,000.00
Age 65 Amount $5,408.00
Disability Amount $7,196.00
Caregiver Amount or Infirm Dependant Amount $4,198.00
Education Amount—Full Time $400.00/month
Education Amount—Part Time $120.00/month
Tuesday, January 27, 2009
Triple threat tax fraud targeted by the Canada Revenue Agency Minister Blackburn declares
New release on CRA website: http://www.cra-arc.gc.ca/nwsrm/rlss/2009/m01/nr090123-eng.html
Ottawa, Ontario, January 23, 2009... The Canada Revenue Agency (CRA) has launched a Web page dedicated to Project Trident, a nationwide enforcement and awareness project that targets three types of illegal activity: identity theft, charities‑related fraud, and tax preparer fraud. This Web page will help Canadians recognize tax fraud and learn how to protect themselves against it.
"Project Trident is a hard-hitting CRA project that protects the tax base by prosecuting players in fraudulent tax schemes and reassessing tax returns," said the Honourable Jean‑Pierre Blackburn, Minister of National Revenue. "We have had good results in prosecuting the people who perpetrate these activities, and have reassessed a significant number of returns," added Minister Blackburn.
There are currently over 70 cases that make up Project Trident in various stages of investigation. In addition, there have already been 13 convictions, resulting in over $1.8 million in fines and a total of 210 months in mandatory jail time.
"The three types of illegal activity are often used in combination," indicated Minister Blackburn. "Many of the cases involving tax preparer fraud also involve charities-related fraud or identity theft. For example, some unscrupulous tax preparers sell false receipts for charitable donations to their clients. Others commit identity theft by using personal information from legitimate clients to file fraudulent tax returns."
Charities-related fraud can be committed on its own, without involving identity theft or unscrupulous tax preparers. For example, a charity could be set up to sell inflated tax receipts, but perform little to no charity work.
The CRA audits charities to put a stop to such fraudulent schemes and intends to prosecute tax preparers, directors of charities, and donors who are found to be involved.
The CRA is on the lookout for identity theft. As soon as the CRA confirms that taxpayer information has been compromised, we do everything necessary to prevent the fraudulent use of that information.
Visit http://www.cra-arc.gc.ca/projecttrident/index.html to find out more about these types of fraud, to see a summary of convictions, and to stay up to date on the fines, jail time, and reassessments in these cases.
Ottawa, Ontario, January 23, 2009... The Canada Revenue Agency (CRA) has launched a Web page dedicated to Project Trident, a nationwide enforcement and awareness project that targets three types of illegal activity: identity theft, charities‑related fraud, and tax preparer fraud. This Web page will help Canadians recognize tax fraud and learn how to protect themselves against it.
"Project Trident is a hard-hitting CRA project that protects the tax base by prosecuting players in fraudulent tax schemes and reassessing tax returns," said the Honourable Jean‑Pierre Blackburn, Minister of National Revenue. "We have had good results in prosecuting the people who perpetrate these activities, and have reassessed a significant number of returns," added Minister Blackburn.
There are currently over 70 cases that make up Project Trident in various stages of investigation. In addition, there have already been 13 convictions, resulting in over $1.8 million in fines and a total of 210 months in mandatory jail time.
"The three types of illegal activity are often used in combination," indicated Minister Blackburn. "Many of the cases involving tax preparer fraud also involve charities-related fraud or identity theft. For example, some unscrupulous tax preparers sell false receipts for charitable donations to their clients. Others commit identity theft by using personal information from legitimate clients to file fraudulent tax returns."
Charities-related fraud can be committed on its own, without involving identity theft or unscrupulous tax preparers. For example, a charity could be set up to sell inflated tax receipts, but perform little to no charity work.
The CRA audits charities to put a stop to such fraudulent schemes and intends to prosecute tax preparers, directors of charities, and donors who are found to be involved.
The CRA is on the lookout for identity theft. As soon as the CRA confirms that taxpayer information has been compromised, we do everything necessary to prevent the fraudulent use of that information.
Visit http://www.cra-arc.gc.ca/projecttrident/index.html to find out more about these types of fraud, to see a summary of convictions, and to stay up to date on the fines, jail time, and reassessments in these cases.
Monday, January 26, 2009
Gong Xi Fa Cai!
Happy Chinese New Year! Gong Xi Fa Cai!
Wishing you a happy and prosperous new year! The year of the Ox.
Wednesday, January 21, 2009
Automobile benefits on-line calculator
Don't know how to calculate your automobile benefits? Do not worry!
The CRA just announced the 2009 automobile benefits on-line calculator effective Jan. 1, 2009.
Here's the link: http://www.cra-arc.gc.ca/esrvc-srvce/tx/bsnss/bc-eng.html
The CRA just announced the 2009 automobile benefits on-line calculator effective Jan. 1, 2009.
Here's the link: http://www.cra-arc.gc.ca/esrvc-srvce/tx/bsnss/bc-eng.html
Thursday, January 15, 2009
Remitting GST/HST on Taxable Benefits
Did you know that GST/HST must be remitted on a taxable benefit unless the benefit is tax exempt or zero-rated, for example the benefit on low-interest loans? An example of a tax benefit that is not exempt includes the automobile standby charge and operating expense benefit. GST/HST must be remitted on shareholder benefits if they fall into Subsection 15(1) and are not tax zero-rated or tax exempt.
The amount of GST to be remitted for taxable benefits is 4/104 of the benefit amount or 12/112 of the benefit amount for HST participating provinces. Taxable benefits for automobile operating expenses are taxed at 3% of the benefit amount or 9% for HST participating provinces.
Non-taxable allowances based on kilometres driven are eligible for the GST/HST input tax credits (ITC) claimed by the payor. The ITC is equal to 5/105 (GST) or 13/113 (HST) times the allowance.
The amount of GST to be remitted for taxable benefits is 4/104 of the benefit amount or 12/112 of the benefit amount for HST participating provinces. Taxable benefits for automobile operating expenses are taxed at 3% of the benefit amount or 9% for HST participating provinces.
Non-taxable allowances based on kilometres driven are eligible for the GST/HST input tax credits (ITC) claimed by the payor. The ITC is equal to 5/105 (GST) or 13/113 (HST) times the allowance.
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