What's the age of majority in your province/territory?

Meandering through the ages... some thoughts on being a teen and tax..

Does the age of majority vary depending on what it is that is being authorized?  

Does it vary depending on whether it's the age of consent for to be employed and at what rate, or to contract to purchase a car or a house? Or for sex? or drinking, or driving...

How about for signing your own tax return? 

Or opening an RRSP? 

Did you know about a directive in the federal budget in 2013 about representation and uptake on the RDSP? 

Here's what CRA has to say about how they are handling the challenges of low uptake on the RDSP...and there's some stuff about youth in there too...

http://www.cra-arc.gc.ca/gncy/bdgt/2012/qa08-eng.html#_Toc320860289

There are significant variances in how legal representation is handled across the jurisdictions.


In December 2013, a Senate Committee was authorized to study this issue. 

A report is due by March 31, 2014.

http://rdsp.com/2013/12/04/senate-committee-authorized-to-study-the-ability-of-individuals-to-establish-a-registered-disability-savings-plan/


I called CRA today to ask about what do they consider to be the age at which a child no longer has a legal guardian. Their internal documents, for which the agent couldn't find any external sources is that the legal age of consent is age 16.

So, even though a child doesn't reach adult for many of the programs and services offered until 18 or 19, at age 16 they can sign their own tax return.

Did you know that a child can begin accumulating RRSP room as soon as they start working, which could be at a young age, so, file a return for your babysitters, and your lawncutters and your paper deliverers to start their RRSP room as soon as they start working.

They can't necessarily employ their RRSP room to open an RRSP until their bank is willing to allow them to open an account, but when they can open an account, they'll be ahead of the game with room to contribute from having worked from a young age.

Apparently the banks can't allow someone who is too young to open an RRSP based on the age of majority which is a provincial/territorial guideline and will vary by jurisdiction.

If you have a youth transitioning to adult, and they have a disability or infirmity, this web page has links to useful information.


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Considering QuickBooks Online?

If you're in the area, and in need of PD, I'll be doing a presentation on QB Online for accountants at the Fraser Valley CGA Computer User Group on Wednesday night 7 30 pm.

There's been some exciting updates in the technology over the past few months. Did you know that you can use it on a MAC as you're able to access it via Safari? 

Or that you can access a simplified version via an APP on your mobile device?

Did you know that accountants can sign up for a free account and then invite clients to check it out, and provide those clients with access to a 30% discount on the monthly access fee?

There is more. See you on Wednesday night?

Here's the information about the group, fees, times, address etc.

https://www.cga-bc.org/events.aspx?id=2896&terms=computer%20user%20groups#fraser

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Learning how to keep records using QuickBooks

There's a lot to learning to use any software.  There's the look and feel, the special tips and tricks. There's the best practices to stay out of a mess.

A couple of years ago, I spent four months writing, and then two weeks delivering a ten part series on how best to keep records, and yes, it's using QuickBooks (but really, it should be any software) because in this series, I incorporated the best ways to keep records for business paperwork. Except that anyone who uses other software isn't willing to spent the time on it, because all they see is ...blah, blah, blah QuickBooks. That's sad, but it's true... maybe this winter, I'll have to create something that is software neutral on the business paperwork angle.

This is a little 'flipsnack' I created with the content descriptions for each of the ten sessions.

http://www.flipsnack.com/TaxDetective/

Then, after IPBC (www.ipbc.ca) which now has 1,100 members... and I recorded these ten sessions in March 2011, I went on to record another five hours just on working papers in March 2012, and other answers to questions posed by the live participants who attended those two series.

In October 2012, we realized how expensive all these individual pieces had become, so to make it affordable for bookkeepers, we decided to bundle 44 products, and call it a training bundle. Bookkeepers purchased the bundle (members at half price) and sent me emails telling me they were watching the videos three times with the sample data file open so they could play while they learned. They would set up a laptop with the recordings to listen while they worked on their desktop with QuickBooks open.  Pretty effective way to learn something, by doing as you listen. Stopping, starting, pausing, rewinding to hear it again...

Business owners would call and I'd say, well you could spent thousands on training one on one with me, or you could buy my training bundle for $290.00. You choose.  Sometimes they would choose to spent several thousand, and then at $125/hour, eventually, they'd get it, and ask me, didn't you have a training video series that would cost me less and I could do it on my own time?  Then later, they'd email that yes, they wished they had listened to me in the first place. You can lead a horse to watch, but you can't make him drink...

Last fall, because members were asking, IPBC and I did another three hour series, this time in November 2012 on just Inventory Parts.

In January this year, a series on using Quicken for Investment Accounting

And in February, we recorded a tax series on self-employed record keeping, another five hours.

This fall, we're half way through a series on Internal Controls. There's nothing about QuickBooks in this series.  The tax series on self-employed, it's not about QuickBooks either, though I do use it to show how to do account for tax.

You can purchase all of these products on my website. Learn at your own pace.  If you have staff turn-over in your bookkeeping and accounting department, you can pull out the videos and start over without incurring additional training expenses to send your staff off to school. You'll know exactly what they are learning, because you've already watched it.

This winter I'm thinking about doing a new series on using QuickBooks Online. And during the Internal Control series, several people expressed interest in a course just on how to keep records, for any software, to minimize the risk of audit. I may use QuickBooks Online, and maybe add in some other software, as I did a survey of what's out there (find it under Keeping Records>Productivity Tools on my website www.taxdetective.ca

Training bundle $290 (44 products, including 20 hours content included in Flipsnack above)

Inventory Parts $134.87  (3 part series)

Quicken Series $219.80  (4 part series requested by bookkeepers after September 2012 overview)

Keeping Records - self-employed $274.75 (about tax, not QuickBooks, though it does use QuickBooks to show how to do the accounting for tax)

To register for the Internal Controls workshop, to download the first two recordings, and attend the last two sessions, which are looking really interesting, visit www.ipbc.ca to register. They'll send you a link to the protected page with the downloads and the next session is December 4th at 1 pm PST.

Oh yes, I also created along the way, something you might want to share with your teens, young adults, and teachers...it's slowly being picked up and used by business education teachers who care...

Free - Student WorkBook for Canadian High School Teachers - Case studies & YouTube videos to learn how to use TurboTax Online for free / anonymously to protect student privacy

And, if you're looking to acquire more PD hours for reading before year end, my TaxLinks Pro Portal is free links to a variety of tax topics. Everything from Artists & Writers ( a very popular page) to Personal Services Businesses, or T2125 and self-employed, or Leaving Canada.

Look under the Learn About Tax button on my website (top of each page)
or go direct to http://www.taxdetective.ca/taxlinksportal.html


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Segregated Funds

If you own Seg Funds, the capital gain or loss on disposition of units of the fund is calculated and included in your T3 report slip from the company.

It isn't necessary, or even possible to calculate this gain/loss yourself.

I recently read a discussion about how to calculate the gain/loss yourself, and there was no mention that this calculation is prepared for you by the Seg Fund company.

Has something changed? Or am I wrong? Can someone comment from the Seg Fund / Insurance Investment sector?

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Two more articles to read about Crowd Funding

http://crowdfunding.cmf-fmc.ca/regulatory_updates/provincial-and-federal-tax-credits#!

http://www.mondaq.com/canada/x/267724/Income+Tax/Crowdfunding+Proceeds+May+Be+Taxable#!

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Crowdfunding in Canada

Hot topic these days, crowd-funding.

It seems there are at least two types, equity, and donation with benefits.

There's also legal controversy swirling around this topic. Here's some links from Alan Baggett who has been following this topic because it's new and interesting, of course, because it's about raising money for businesses...and who doesn't want to figure out how to do that more effectively.

http://www.prweb.com/releases/2013/10/prweb11267067.htm
http://business.financialpost.com/2013/10/09/crowdfunding-financing-is-taxable-income-cra-says/
http://www.ctf.ca/ctfweb/EN/Newsletters/Canadian_Tax_Focus/2013/4/130407.aspx

As for the two types, donations with benefits, and equity funding, they are quite different.

Remember, donations, they have to be for charitable purposes, and can't come with strings attached. And most sources of income are taxable, especially when you're in profit making mode, and your source of funds doesn't fit any of the criteria in S. 81 of the Income Tax Act. 

S. 81, that's what I call the hero section, where if you provide extraordinary service, for example, you take in someone who isn't family, who is on welfare, or you're a foster parent, or...here's the actual section, which sets out exactly what isn't income.. and crowd-funding, well it's not on that list.

http://laws-lois.justice.gc.ca/eng/acts/I-3.3/section-81.html

Equity funding has typically come about by the issuance of share capital. How exactly will it work when you're issuing shares on the street without going through the usual channels? That's where the controversy likely comes in. I'm sure we'll hear more about this in the next few months as our securities system attempts to come to grips with this new financing methodology.




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2013 11 18 12 07 Keeping Records for Tax Purposes


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Mentoring is on my mind...

Start-Up week is over. 

You might want to follow @Start-up_Canada on Twitter to see what all the fuss is about. Apparently there are so many young people starting businesses that Intuit Canada has partnered with Start-Up Canada to offer QuickBooks Online to start-ups for a full year for free.

If you're not a Start-up and you don't have a deal yet, you might want to consider contacting me because I can get you 30% off your QuickBooks Online subscription for a lifetime if you're my client.

Now you're not likely to want to switch accountants, and I'm great with that, as I don't want to do year ends or corporate tax.  But I love helping people master QuickBooks. That is what I want to do full time.

So I'm offering a Service Pack - and here's my thinking.  I've been working with several business owners on getting them caught up because they are a few years behind. I've been doing that pretty consistently for many years.  It takes time, and the business owner needs to build skills like how to organize their paperwork. It's about new habits, building them and maintaining them.

I've got several owners with whom I have a weekly meeting. We meet online because they live far away, and I'm not going to want to drive to them, or them to me. It's very convenient, we meet on the phone, and hook up our computers using a secure encrypted GoToMeeting hosted by Citrix. I pay the monthly subscription and can hold as many meetings with up to 25 people as I want to.  Been using it for years.  Try it out yourself, free for 30 days.  You can even hook up your webcam so you can see each other.

Anyway, that led me to thinking what if I offered a Service Pack for other business owners, just to make sure their QuickBooks data files were healthy. There's a lot to check up on. Everything from security, preferences, the chart of accounts setup, how the Items are linked, are the reports set up property, why doesn't the opening balance agree to my last S100 and S125 schedules on my T2 Corporate return, why doesn't my bank that is supposedly reconcile show me the right balances on my financial statements, that sort of thing. That's what I'm really good at, figuring out how to fix all of that stuff.

And that's what costs you big time at year end, if you haven't dealt with all that stuff, your accountant will get a headache just dealing with all those loose ends. And that's what costs you so much at year end.

So, what if, for $99 a month, you could have someone work on those things with you, to guide you to where your year end was a mere formality, and your accountant was sooooooooo happy with your bookkeeping that their bill was way less than last year end.

Don't believe me, go look at your last year end bill, and tell me whether you think it was too much, and what your accountant said was the reason.  I'm not here to replace your accountant, I want to make sure they like you because your books are complete and correct.  BTW, complete and correct record keeping, it's actually the law, it's not an optional thing  Sometimes CRA sends out auditors to blanket a town to check that everyone has books and records that are complete and correct. If they find that business owners don't have complete and correct records, they will issue demand letters with deadlines at which time they will come back to check to make sure you've caught up.  That means up to current, not just up to the end of last year end.

I can help but you'll have to work with me.  How does once a week sound? On the phone at your desk, no tidying up, just you and me, talking about your record keeping.

http://eileenreppenhagen.fullslate.com/

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Orange is the new Black

Electronic sales suppression devices are in CRA's sights!

If you are involved in a business where there is sales suppression software installed, you may want to check in on your sense of morality

... and your comfort with the new proposed fines and jail time for being associated with a business who suppresses sales to cheat on their taxes.

If you aren't already subscribed to my website newsletter,
http://www.taxdetective.ca/news.html

here's today's post...Orange is the new Black...

http://www.taxdetective.ca/newsletters/newsletter/1482040/91448.htm

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Instalments - so what's my beef?

Instalments, once you're on the system, are to be paid March 15, June 15, September 15 and December 15.

But when you're starting up a business, they don't apply until after you've filed your first tax return, which is due June 15 of the next year.

That's when the tax preparer tells you that you were supposed to pay your taxes (estimated) by April 30, and your GST/HST for your annual return, also filed June 15, that was due April 30 as well.

Then, they hit you with the news that not only was that due, so there's interest outstanding for not having paid it on time, BUT...

you'll be assessed in the summer for the instalments for the current year, all of which is due in two instalments, on September 15 and December 15.

The reason you're freaked? You had all this money in your account, so you've booked the entire family on a summer holiday to Europe for 6 weeks. The money is gone.

That's why I Tweeted today that CRA should get addicted to your tax instalments a whole lot sooner.

Yes, you're supposed to be responsible, accountable, and responsible again, but who can resist the opportunity when that money is sitting there for soooooo long, that you forget what it's really for.

The worst part? Once it's gone, you'll never get the chance to re-coop it, it will take about ten years to catch up because you'll always be behind.

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/pymnts/nstlmnts/ntrst-eng.html?=slnk






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Electronic sales suppression - "zappers"

I've just updated my web page on penalties and interest to include some useful links about proposed legislation

Check the moral compass of your clients or your employer

Seriously, if your clients or your employer are suppressing sales with software, where do they fit in your life?  A, B, C, ...why are they in your life at all...?

They could be looking at jail for 2-5 years if this legislation passes (see the link below to go straight to the legislation on the Finance website)

Anyone else read or watched "Orange is the new Black"?

I'd recommend the book, there's lots they don't show in the TV series.

http://www.taxdetective.ca/penalties-and-interest.html

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There's a newsletter on my website

Subscribe to my newsletter for email news

http://www.taxdetective.ca/news.html

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Hah, the bookkeepers must be getting caught up

It's after the third quarter, and several bookkeepers bought the bundle of video training on how to use QuickBooks this weekend.  Reminded me to remind you that these products exist.  I have about 100 things for sale in my shopping cart, and if you've never experienced any of them, you may be missing out on something amazing, at least that's what the bookkeepers tell me.

Since spring of 2011, I've been delivering webinars on a variety of topics to do with QuickBooks, Procedure Manuals, Inventory Parts, Microsoft OneNote, etc. for the members of the Institute of Professional Bookkeepers of Canada.  Their website is www.ipbc.ca

If you haven't gone to investigate who they are and what they are doing, I encourage you to pay them a visit. I love that they asked me to be a participant in their journey. They tell me they're up to over 1,100 members and climbing.

You'll find those products sell on my website, and I give them a cut of course, because they hosted the webinars.

I bundled everything up from March 2011 to October 2012, and then have kept on producing webinars,

November 2012, Inventory Parts (QuickBooks of course)
January 2013, Quicken, a series on Investment Accounting for everyone who has investments
February 2013, Self-employed record keeping using QuickBooks, and focused on tax.
May 2013, Microsoft OneNote, more for fun and profit, not like the working papers series included in the bundle from March 2012 which was about using QuickBooks reports to create working papers in One Note (that's cool too but this was more about procedure manuals.

Next up, I'm doing a four part series on Internal Controls, at their request, and you'll find the pricing and details on their website in their calendar.  The first part of the series starts on the 19th of November, and runs weekly for four weeks. I'm having fun putting this series together with help from a couple of CFE's (certified fraud examiners) and a CMA and a CGA who took time to answer my interview questions. 

More on that this week.  Anyway, check out my shopping cart at www.taxdetective.ca
If you want an idea of what this looks like, there's a freebie for 49 minutes on my YouTube channel, and the sample QuickBooks data file created during this process is there to download in my free stuff section of my website.




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Today's caller..$1,125 tax refund. Is tax for disability ever complicated!

It's never just the DTC, it's the supplement for a child under 18 that must be clawed back by child care costs, it's the extra child care costs eligible because of the DTC, it's the DTC supplement to the fitness and now the arts credits for $500 if at least $100 is spent on that child. There's more, but you get the idea. And now, we have Bill C-462 which requires us to report if we charge someone for assisting them with claiming the DTC. Doesn't say anything about all these extra bits though. He already claimed the DTC, it's all the extra bits that weren't claimed.

Because he filed his personal returns manually for the past three years, he didn't add the bonus extra $500 children's fitness amount for a child with a disability who had a claim for at least $100 of fitness costs. He just claimed $500 per year for each child.

That equates to $75 per year for 2010, 2011 and $100 for 2012, BC added a children's fitness credit for 2012, so $500x 15% federal, plus 5% provincial for 2012, that's $100. More than enough to pay for using the online TurboTax program to file their returns next year.

Then, for last year, he forgot to claim the DTC supplementary amount for a child under 18, net of child care costs paid and claimed by his spouse. There is a significant refund for the DTC Supplement for a child under 18. $4402 x 20% is $875 for BC.

After we met online to review the changes he would have to make once he found all of his receipts for child care and children's fitness amounts for both children,  I had a moment of doubt, did they claim the infirm amount for the child with the disability, so I called back.

 
No, we had already discussed that, their child isn't infirm, but he does qualify for the DTC and the DTC supplement. I'm still not sure that the tax software companies understand this difference. I know that Profile doesn't do this calculation correctly for 2012.
 
If you want to know what the difference is between Infirm and Disability, there's more posts on this blog. Just search for infirmity in the search box at the top of the blog. The infirmity documentation is not the same as disability, which requires the T2201, it's a letter from the doctor and it's required for 2012 and forward for an extra $2,000 tax amount on five different types of dependent, including spouse, child, relative you claim the caregiver amount for, or the infirm amount, or eligible dependent (equivalent to spouse) See a TD1 for thresholds, limits and amounts.
 
If you have a child with a disability, whether they are under 18 or over 18, you really need to know the rules, or you could miss out on tax credits that would save you thousands every year.
 
I have several pages with useful links found under my TaxLinks Pro Portal, and of course now CRA has added Folios, but they haven't yet gone live with #4 personal credits.
Here's some useful pages
Personal Tax Credits www.taxdetective.ca/ptc.html
Youth in Transition www.taxdetective.ca/youth.html
 
Remember, if the font isn't big enough, enlarge what you see on your screen by holding down the  CTRL key and selecting the + to enlarge or the - to decrease the size of the font on that web page.
 
 

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Tuesday 9 30 am Pacific Time - Accountant's Only Tax Study Club

Is CCA is a simple topic? Just do the math? I wish it was that easy. 

CCA takes up a whole chapter in the CCH Preparing your IT book – so this month, let’s take an hour to reflect and review the major concepts, and some of the not so major ones that can trip you up.

Does anyone have an interesting story about CCA and how they had a challenge to overcome? Bring your story.


Sorry, but this group is restricted to certified accountants. CA's, CMA's and CGA's only. No staff or stand-ins. 

Register at www.taxdetective.ca/taxclubs.html

Monthly fee is $30 plus tax.  

Every so often I get a complaints from someone who can't understand why this group is only for accountants, but I can tell you, that every time I've mixed the accountants with non accountants, there isn't anyone saying anything.  

Then, I've tried holding a group for the non accountants, an no one signs up.  I give up, sorry, this tax study group is only for certified accountants, because that's the only way I can get them to participate and show up..

Self-study? Here's the links, count your hours... 

http://www.taxdetective.ca/cca.html

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Internal Controls workshop now open for registration

Can you spot a fraud? or have you been the victim of a fraud that could have been prevented with internal controls?

Week #4 on December 11 is about identifying fraud and not providing opportunity for someone to commit a fraud by taking preventative actions

So tell us your story (change the names to protect yourself) and share your tip!

I've already had a few accountants share their tips, and incorporated their wisdom into the content,

But you never know, your tip could help someone

Someone much wiser than me said that as much as 50% of all fraud is because there was an opportunity and someone took advantage. Are you doing everything you can to protect yourself?

Register for the series, Nov 19, 28, Dec 4 and 11, right here at

http://www.ipbc.ca/events/event_details.asp?id=370626&group=

If you can't attend, you can get the recordings after each event if you sign up for the event, or you can purchase the series after it's over on my website, but it will cost more. So registering now, whether you attend or not, is a better deal.

If you've got a tip for bookkeepers on how to practice safe record keeping, post your tip here, or email me if you don't like posting to a blog, at eileen@taxdetective.ca

If it's not already there, I'll add your tips to my list of tips for bookkeepers in lesson #4

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Apparently I'm now part of BC's history... (not that I wasn't before, but now it's official)


This is fun. When Vicki Huntington was first elected as an MLA to the BC Legislature, she asked me to help her with the first budget lockup. Neither of us had a clue how it would work, but she informed me I should come over on the first ferry, and meet at her office. Remember at that time, Vicki was the only member without a party.

Vicki was fortunate to be placed in a lovely location, just off to the right of the doors to the legislature. Beautiful old furniture, big windows looking east, beautiful old wood, and room for her staff.

I was a little puzzled because I was sure that the budget lockup was very early in the morning.

About 11 a.m. I and her assistant were called upon to follow someone out of the building. We crossed the street to a building behind the Parliament building, and were ushered into an office, and then into an unused, dusty boardroom, filled with old boxes, which were shoved out of the way, and we were given chairs and a desk to sit at. On the way in to that office, we noticed that there were representatives of the NDP being ushered into a boardroom just down and across the hall.

We were handed a copy of the budget documents, and informed, if we wanted to ask questions, we'd have an hour. During this time, a person would be stationed out in the hallway outside the offices were in were, with a phone. This person would be able to call over to the Finance department staff who could answer any questions we had.

The budget documents were in a series of blue bound books. We spent about a half hour reviewing the documents, and I found myself circling a number of items, and making notes. At that point, I thought what the heck, let's test this system out, to see what happens, so I opened the door, and proceeded out to the hall where I found a clerk sitting on a chair, holding a cell phone. She handed me the cell phone, after dialing a number for me.  A person answered, introduced themselves as an accountant in the Finance office and asked which page I had a question about. I said I had a number of questions on a number of pages, and they informed me I would have to ask different people those questions as each person had their own section. So if I could provide the numbers, he would gather together the people that could answer me.  I listed off about 8 pages, and he went off to round up 8 people. At the other end I could hear people chatting as I asked the questions, and each person took their turn explaining their perspective on my questions. They were kind, and had good answers for me.

Then, we were ushered back over to Vicki's office and by this time she had gone to sit in the house for the reading of the budget, so we had no chance to communicate with her about what we learned, or about our experience.

Needless to say, when Vicki came backand found out what had happened, she was not a happy camper – at allRegardless, we met with her staff to review the budget in detail, and to discuss the financial statements for the province. It was a very interesting day.

Later, when Vicki and I went for dinner, we discussed what we had both been expectingwe both thought Shawn, her Research Assistant, and I would be in the regular lock-up.  I thought I would meet with other accountants from CGA BC who were in the lockup, along with the media and various representatives who were all briefed about the budget before it was made public.   Moreover, both Vicki and I were shocked at the condition of the room we were placed in; that we weren't part of the general process; and that neither was the NDP. I remember having a conversation with a man who was the head of this process, no idea what his role was now, but it was very official, and he informed me that it had always been this way. He was very kind and bemused that I found this unacceptable.

I didn't hear anything after that, until today, when Vicki happened to mention that apparently our queries brought about a change in  the way the budget lockup works.  She had objected to Finance Minister Hansen about how things were done, claiming it was not right or respectful.

Here's how Vicki described what happened afterwards.

"I objected strenuously to the Finance Minister (Mr. Hanson) and it was changed!  He said it had always been that way: I said it didn’t make it right or respectful.  We discussed various considerations.  Colin said he would think about it and later called me back with hisdecision:  staff or the MLA could nowgo to the lock-up, but could not ask questions.  And I think he said there would also be a lock-up for MLAs if they wanted to ask questions, but I would have to check before confirming that.  It was a good compromise that moved the issue significantly, and the Minister deserves credit for reviewing the situation positively:  we could listen to everything going on and all the questions and answers that the agencies/media had, but just couldn’t speak.  Politics, you know.

I have never had an opportunity to get that significant change out to the public:  it was a big deal, you know.  When I asked Bruce Ralston (the NDP Finance critic) whether he had ever objected to the dusty room treatment, he said no – it had always been that way. 

So, Eileen, you are part of history!"

Vicki Huntington, Independent MLA, Delta South
 

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Reflections on being #331

Well, I did it, with only a few small vocal tremors. I stood up #331, and spoke in front of Council, in a room with people in red hats waving little hand size placards, and people with green shirts, who spent a lot of time rolling their eyes behind me.

Most helpful, big smiles on the faces of the council members, Sylvia's smile, and Mayor Jackson's smile stood out, but there were others. I was very grateful as it made it easier to speak. Thank you, Mayor and Council.

Like the woman who spoke a few numbers before me, I wore a purple hat and boots, to reflect a mix of green and red. We wore purple on purpose. We felt conflicted.

There's two parts to this deal. I like the donation of the land and it's subsequent maintenance, but it's tied up with an unacceptable development of 20% with its 950 homes.

950 homes in the wrong place, plunked smack dab in the middle of two low density neighbourhoods with about 600 houses in each. The impact on these two neighbourhoods is dramatic, in the build-out and on-going. The cost to the closest neighbourhoods can't have been calculated.

I wish the two issues to be treated separately. One should not be contingent on the other.

Whether the donation is 80% or 100%, I'm ok with that part. If it's 80%, I'd be prepared to live with a few estate homes, with hobby farming and horses maybe as that used to be a big part of life in Beach Grove and Boundary Bay.

Why not a town centre with more people, more density, one that's vibrant, alive, safe, one that is re-designed so it isn't necessary to traipse across several major intersections, risking life and limb, whipped by the prevailing wind and rain?

A town centre should have character, and feel welcoming. Where there are people out and about in the evening, even in the winter. Where when you drive through, you want to park diagonally, to get out of your car and look in a shop window or walk and talk. It sounds like the design of the 20% Southlands is exactly this. So why not move that design to the town centre, and built it there instead?

What would I want to see? I'd like to rent a single level suite with street access, pet friendly, with a little patio out front where I can sit and people watch. What good is it to me to live down by the border, miles from services, in a secondary town centre, without public transit, down a hill from town when I'm old? I want to be in the middle of things, with services within walking distance, and I want to feel safe to walk at night with my dog, just like I do now in Beach Grove.

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Found a great info page in Wikipedia on Internal Controls

http://en.wikipedia.org/wiki/Internal_control

Now how on earth am I going to condense all of this down into four sessions for bookkeepers...

Sales, what leads up to a sale, the sale process, post sale, now that everything is on the internet for sale, eBay, Craig's List, my website, your website

Purchases, what leads up to a purchase, the order, the receipt of goods, verification of the bill, post purchase, now that I can buy it online

Deposits, now that banking is so automated, this will be interesting. Have you tried making a deposit from home yet? Last week I deposited a cheque at my desk, using my iPAD to record the deposit on the bank APP. No more trips to the bank machine in my future.

Payments, now that I can pay with PayPal using my iPhone, and PayPal wants me to upload my picture so the vendor can ID me right on my phone.

This is such an interesting topic given the times we live in and advances in technology!

www.ipbc.ca

Will ATM's disappear?  Are receivables a thing of the past for small businesses?

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Internal Controls in my community, Delta BC

I'm writing my script for a series of four hours for bookkeepers, topic, Internal Control. Yesterday, I spent the day looking through my textbook for management audit at the definitions of what is internal control, who it applies to, why it's necessary and how it's implemented. it's about doing the right thing in order to succeed at whatever your endeavour. It's about protection, it's about ethics.

Then, because my husband said "you need to go say something about the Southlands development, particularly about the process of why we have to keep on saying no, over and over", so off I went to sign up to speak. I'm # 331 so maybe I'll get to speak on Friday night. There have been 209 speakers over 3 meetings this week and the hearing has been extended to Friday evening.

I listened to speakers for the YES camp, intent on flattering the developer with how much they 'trust' him and the process and how they are the silent majority. I wondered how many would feel the same way if they knew about the potential for tax credit claims that will result in significant tax savings the developer can obtain if he qualifies for the Eco Sensitive Land donation tax credit.

I don't know if the developer qualifies, but when I Tweeted about it last night, the PR person was quick to respond that this wasn't their motivation, but it was what he didn't do that was interesting. He didn't deny there was a potential benefit. I think that the Southlands has become like an albatross, and for the developer, the donation tax credit is perfect. Me, I'd like that 80% donation to be 100%, and for the developer to move on to other projects, like renovation of the town centre and creation of enough housing, services and facilities for the plethora of seniors or about to be seniors in town. The Southlands development may be beautiful, but it's not in the right place. Move it to the town centre. Get it off the floodplain. That's my opinion too.

Now, remember, that plebiscite run by the people for the people back in the 80's where people stayed home from their holidays to vote because their kids insisted they vote against the development? I was reminded of why it was so successful by one speaker last night.

I was so impressed by a young man, maybe 10 or 12 year old, who reminded us of the disruption to habitat that will result, as the Southlands is home to prey and predator. He asked us to remember that we need to save this land for him and those who are yet to be born. I wonder, this time around, how many kids in Delta will hear his speech and pressure their pro-development parents to change their minds? Last time, one of my clients told me his children had totally refused to have anything to do with him unless he voted against the development. He was a developer. Those kids are now adults. I'm sure they all remember Friends of Boundary Bay, Martin Keeley and his Wetlands Road Show it travelled province wide for many years. Remember those lessons in the trailer and the parks and schools? If anyone (especially teachers) wants a copy of those publications, ask me, I have them and can distribute them to you. eileen@taxdetective.ca.

I listened to the NO camp expound on their reasons for not proceeding. All great reasons, especially the one about how this is a great plan, it's just in the wrong place, so put it in the town centre and lose the mall.

One speaker echoed my husband's reason eloquently, about how it's time to put this to a vote. The public hearing process really isn't democracy in action.

But my reasons for saying NO weren't being expressed. I've been pondering what are they?

1) Fear its going to cost me. I know this sounds stupid, but it's about the hole in my driveway. This is the same fear as last time, in the 80's. Except, now that hole, it's bigger. The hole fills up with sea water when the water table rises with every high tide, especially storm surges. Sometimes, it overflows and creates a puddle in my driveway.

Several years ago it cost us about $1,500 to create a new and better sand pit beneath the driveway, and an enhanced hole cover. When we purchased this property 28 years ago, we didn't know that there was not a drainage system in most of Beach Grove. It was only when I volunteered to serve on a Beach Grove/Boundary Bay committee where I learned about the bylaws and the infrastructure restrictions in these two communities.

That's also where I learned that only several of the many streets in our community have any sort of drainage built in. That's likely why Delta steps up so readily to deal with storm surges every winter. They probably worry about the lawsuits should this become a bigger problem. At some point I suspect we're going to have to pay to have our streets ripped up to deal with this lack of infrastructure.

I would like to know why Delta isn't likely to enforce their % of pavement on road allowances by-law. Not only does pavement impact greenhouse gases, but it makes drainage difficult. At some point this has the potential to become a special project for Delta and it's going to cost us to have the roadways ripped up again.

2) Fear of flooding. Why is that? The pavement of local road allowances has proliferated recently, in spite of bylaws that limit pavement on road allowances and property.  Puddle jumping is often required, for example, this morning, the corner of Enderby and 16th, there's water on the roadway. So much so that I bought red rubber boots so I could stomp in the puddles. It's therapy. You may have seen me, I walk my dog two or three times and day, 20-30 minutes each time, various routes through the Grove.  I can tell you, there are lots of  puddles and the pavement probably isn't legal. Is there a puddle in your driveway that never goes away?

I'm sure that Delta is reticent to enforce their bylaws especially along Beach Grove Road where the taxpayers pay 3-5 times the property taxes I pay back a few blocks. Must be difficult to say to someone who has paid you $15,000 or $20,000 in property taxes, no you can't pave your driveway.

But it's my observations over 28 years of living here, and walking my dog, the houses whose driveways aren't paved, the people across the street aren't getting flooded during storm surges to the extent that those with paved properties across from them are. If you live across from someone whose entire road allowance is paved, why aren't you calling to complain? Why doesn't by-laws consider this important? I'm amazed at why this is allowed to continue and propagates itself by the Corporation re-paving when it's necessary to dig it up. Why don't they have a standard that they replace pavement with gravel and start to reverse this ridiculous trend?

3) Rising cost of insurance. My insurance agent's assurances that our house insurance, which is already very expensive at almost $1700/yr because of living on a flood plain will likely increase yet again. I wonder will the strata council for the Southlands struggle to obtain insurance, or how much will the strata fees be because of insurance? Will buyers have difficulty obtaining mortgages if they can't obtain reasonable insurance coverage?

Or is that why the berms are being substantially increased in the developers' planning process? What will that do to insurance premiums for those of us on the other side of the berm?

Back to my driveway hole, will it be seen to be more risky to live outside the Southlands because of the shift in the water table that may happen because of the weight of the development? Water displacement - has anyone examined the possibility that the development of the Southlands will impact the water table in the surrounding communities? I read about that happening by the Queensborough Bridge some years ago. Developer loaded the site, and the neighbour's property flooded because the water table accommodated by shifting. Huge lawsuit.

4) Pedestrian safety. We have narrow lane ways here, two cars can squeeze past each other, but they need to slow down to do that. There are no sidewalks in most of the Grove, road allowances, gravel, sometimes with large boulders or large rocks that are impossible to walk on without twisting an ankle, or potentially breaking a dog's leg.

Some landowners are aggressively discouraging use of their road allowance by pedestrians. The speed limit is 30 km. On several of the thru-fares, there are speed bumps, and in the past several years, the speed on 16th Avenue was reduced from 50 km to 30 km.

5) My sense of safety feels like it is in jeopardy. These days some drivers speed, in excess of 30 km on thru-fares like Duncan and Farrell, and Beach Grove Road, even with it's bumps. They blast through intersections doing at least 60 km without even glancing to see whether or not there is someone approaching. Those drivers on the roads that cross these thru-fares, Kirkwood being one, aren't always stopping at the stop sign. In the last two weeks, I've witnessed three incidents where they didn't stop at all.

I've learned it's best to avoid the sleep deprived parents booting it through the Grove to get their kids to Beach Grove School. And to avoid the drive home crowd, frustrated at truckers who have hit overpasses and caused them long delays. I've experienced road rage several times in the past few weeks here in the Grove. Signage has appeared recently with serious messages like "45 children live and play on this block...slow down", so it's not just me that feels this way.

6) What's the impact on me when the 1,900 new families drop their children in Beach Grove every morning, and pick them up after school.

We have a no left turn off Boundary Road into Beach Grove Road for the morning school rush, which gets ignored, as there are no consequences. Will Delta be working to obtain adequate school busing from Boundary Bay and Southlands, with this proliferation of young families? Didn't the school bus just get cancelled? Will Delta Police find the will to enforce the no left turn and the speed limit?

7) We have by-laws designed to protect us from harm. I don't believe they are being enforced adequately. I started out talking about internal controls? If we're going to add 1,900 people to Tsawwassen, the Corporation of Delta must examine and raise it's standards, and provide enforcement of  by-laws. By-laws like no left turn, speeding, pavement allowances, impedance's to walking on road allowances. Delta should be planning drainage upgrades and dyke reinforcement, and fixing problem puddles on roadways.

In summary, you asked me how this development is likely to affect me? I live and work, and walk in Beach Grove. That's right next door. For me, it's about the cost of drainage improvements, the cost of insurance increases, the risk of water table displacement affecting my property, pavement allowances, road allowance safety, and safety concerns for pedestrians, especially all the dog walkers, and the families who walk here, given the likelihood of a significant increase in local traffic.

I shop at the mall. I'd love to see that mall ripped out and replaced with something creative, including a farmer's market. Why can't Southlands be a donation to the Municipality in it's entirety instead of only 80%? Give the developer of a new improved mall incentives to move the development to the town centre, up off the flood plain.

Mayor and Council for Delta if 1,900 new neighbours plan to use my local streets, it's going to be necessary to invest in drainage, road improvements, and enforce road allowances or design safe routes for walkers.

A public hearing may be one way to gauge what's going on, but is it democratic? Public speaking is a huge fear for most people, you've heard from several hundred people brave enough to overcome that fear. There are how many residents in Tsawwassen? Is this process fair? It's certainly entertaining, But is that a reason to continue these hearings? Put it to a vote, and please consider very seriously accepting a 100% donation of the land, and taking the advice of those who advocate moving the development to the town centre.

Now, back to internal controls for bookkeepers...it's all about ethics. Ethics is really about protection. Protection that starts with me and my safety and sense of well-being, and it ripples out, like tossing a rock into a pond. If I protect me, then I can extend my protection to my neighbour, and to my community.

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Be careful what you sign

Wouldn't you think that a professional firm with a national presence who presents a contract for self-employed services would have a reasonable contract with terms you could live up to?

They contacted me after I visited their booth at a professional trade show.  I should have known better. They said they had clients who wanted QuickBooks consulting. They promised work. I provided them information about me, and invested probably at least a half day updating my information to their specifications and providing a resume on their website.

Then they called me in for an interview. This took another half day, and I paid for downtown parking. Once there, a discussion ensued about how since I was in public practice, I would be treated as self-employed. I was presented with their 'boiler-plate' contract, about five pages of it, and told to sign. 

I don't sign five page contracts without reading and understanding and thinking about them. As I'm insured through my practice, and have my own tools and equipment, and work from a home online, it seemed reasonable I would be self-employed. But there was this challenge, how would I ensure they and their clients agreed to privacy, and Proceeds of Crime & Terrorist Financing clauses in my engagement letter? And they wanted me to give notice, two weeks notice, and in public practice, if you stop working for a client because of ethical reasons, you don't give notice, you walk away. I forwarded them what I would expect their clients would agree to. No response.

Then I read the requirements of their contract. One section in particular stopped me in my tracks. They expected me to make them and their clients 'named insured' on my policy and for me to obtain a waiver of subrogation. This bothered me, because I wasn't sure it was even possible for me to do that. I contacted the insurance company and was just informed, no, it's not possible.

I called them back, and said that if we were to work together, it would have to be on an employment basis, where they assumed the risk. Guess what? Silence.

I'm not a lawyer but, common sense tells me if you sign a contract promising something you can't deliver, that contract isn't going to be valid and enforceable. If anything went wrong, you'd be personally liable because you promised something it was impossible to deliver.

Moral of the story? Don't make promises you can't keep. Be careful what you sign. Read and understand that what you agree to provide must be possible.

And, if you are self-employed, it really isn't likely a personnel agency will be willing to live with a public practitioners terms of engagement, and vice-versa. Once burned, twice shy.

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What's with the DTC supplementary under 18 amount?

Yet again, a client who claims the DTC transfer for their child under 18 misses claiming the DTC supplement.

This supplementary amount tops up the DTC (disability tax credit) both federally and provincially, but it's clawed back by any child care expense claims by anyone. The supplementary amount is mentioned under the Disability amount transferred from a dependent but CRA really don't explain it very well at all

http://www.cra-arc.gc.ca/E/pub/tg/rc4064/rc4064-e.html#P614_55944

well, what do you know, it's finally explained somewhere - the new Folio has two paragraphs that describe how to calculate it, but they only talk about the federal component, and there is a provincial/territorial component that of course will vary by the province/territory.  IF someone finds a chart that lists those amounts, please share it!!!!

http://www.cra-arc.gc.ca/tx/tchncl/ncmtx/fls/s1/f1/s1-f1-c2-eng.html#N1049A

"Supplemental amount

2.27 The supplemental amount is available to an eligible person with a disability who is under 18 years of age at the end of the tax year. The maximum supplemental amount is a fixed amount ($4,402 for 2012), that is indexed each year in accordance with subsection 117.1(1). In certain circumstances, discussed at ¶2.28 below, the supplemental amount may be reduced. Assuming there is no reduction to the supplemental amount for the tax year, the maximum tax credit available in respect of the supplemental amount for 2012 is $660 (15% x $4,402).
2.28 The supplemental amount may be reduced where an amount paid in the year for the care or supervision of the eligible person with a disability is claimed by any person as a child care expense deduction under section 63, a disability supports deduction under section 64 or a medical expense tax credit under section 118.2 for the tax year. The reduction in the supplemental amount is the amount by which the care or supervision costs so claimed exceed a fixed amount. The fixed amount for 2012 is $2,578 and is indexed each year in accordance with subsection 117.1(1). If the amount paid for care and supervision of the eligible person with a disability, and claimed under section 63, 64 or 118.2 is $6,980 (for 2012) or more, the supplemental amount is reduced to nil."

The tax software out there that people use to file their own taxes doesn't seem to capture this extra credit, and I don't know how many times it's one of the things I've found that gives people an extra amount of refund every year (and back 10 years).

It's one of the reasons I get called the "TaxDetective".  It's because amounts like this are hidden, and in fact, CRA is not very forthcoming about disclosing that this extra supplementary amount exists either. Some years it completely disappears from all of their website and printed materials. Then I / and other people like me complain, and it re-surfaces.

This supplementary DTC disappears at age 18. The whole credit system for claiming for an adult child with a disability is completely different. The child has to file a return to claim their own DTC first, and then, the parent or other supportive relative can transfer any amount not used by the person over 18 (there's a long list of who that can be) and they don't have to live with you to claim some credits.

I have a web page with information about the transition to adult as the Pacific Spirit transition group asked me to speak about this topic and it was so muddled that I put together this page to remind myself of what all the rules are and how many things change at or about the time your child with a disability transitions to adult for tax purposes.

http://www.taxdetective.ca/youth.html

Remember, many of the personal tax credits can be apportioned between supportive relatives, which means that if one person claims the credits, but can't use all of them, the remainder can be allocated to a second or third supportive person. It's also possible to agree on the allocation to split up the credits because everyone takes their turn...as long as no one takes more than their share, and if someone does, sometimes, everyone loses the right to claim. So take care and play safe.


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I can't believe it, just got a third call

Another call from someone claiming to be from Century Holdings from this number

I can't believe they have called three times now, each time from a different number.

This time, it's 604-366-1023

I requested that this caller respect that I am on the Do Not Call list and to remove me from their calling list. He agreed to do that.

Here are the rules. Do you think they should cover opinion pollsters? I think they should.
https://www.lnnte-dncl.gc.ca/cofi-fico-eng

Century Holdings is a developer going for a development permit on a huge parcel of farm land. The proposal is that they would build on 20% and gift 80% to the municipality.  

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There's a DO NOT CALL list for a reason


We don’t call Century Holdings.  Why are they calling me? Twice in the past two days I’ve been called on my home phone to ask if I’m in favour of the Southlands.  I’ve advised both times I do not wish to answer their questions, as I don’t answer opinion questions over the phone. 

I don’t know if these are actually people calling from the Century offices, they do say they are, but I have no idea who is really calling, as they call from cell phones and when I call back they hung up on me.  These are the numbers. Call them yourself and ask who they are. They’ll probably hang up on you too.
778-839-1474
604-366-5723

I’m listed on the Do Not Call list. Why are they allowed to call me? Please ask Century Holdings to stop harassing me. That’s why I am on the DO NOT CALL LIST.

I am not in favour of the Southlands development, I might not have been as vocal about it this time as in the past, but I’m STILL NOT IN FAVOUR. 

In my opinion, Century Holdings should just donate the whole property instead of 80% and take their tax credit for the donation of eco sensitive land.

That’s probably what makes this whole deal viable for them. They already likely plan to take the 80% donation, why not make it 100% before Minister Flaherty decides to get rid of it and save the entire property?

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Are you worried someone is being taken advantage of?

Maybe it's an aging parent, an uncle, aunt, a neighbour, a friend. You are worried they will get taken advantage of.

Maybe they confided in you that they haven't filed their taxes for a number of years, or even worse, CRA has assessed them, and they've paid what was assessed based on sales proceeds, but they know they shouldn't have had to pay that much tax.

The trouble is they can't seem to get it together to calculate their cost basis and to file an amendment requesting a reduction in their taxes payable.

There's somewhere to go for help. The Public Trustee is the Public Guardian is the agency to go to for information.

They will steer you to the correct agency to report the situation anonymously so that your client gets the help they need.

You'll have to find the Public Trustee for your province/territory if you're not in BC. Here's the link for the BC Public Trustee web page that provides guidance on when and where to report that someone may need help.

http://www.trustee.bc.ca/services/adult/assessments_investigations.html

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What industry are you in? How do you or would you compare?

Were you thinking about leaping on the entrepreneurial band wagon, especially now that Intuit Canada has come up with the offer of a free year of access to QB Online for start-ups?

Before you leap, you might want to see what the profitability for your choice of industry might be. How much do you need to support you and your family in the style to which they have become accustomed? I'm always surprised by how many people in Canada report income of $30,000, and yet, have huge houses with what must be gigantic mortgages. If interest rates go up, that delicate balance could be totally upset by banks refusal to continue to finance the mortgage without more income reported. Then what would these people do?

Industry Canada has such interesting information, and they have their fingers in so many pies. If you're looking to trademark, copyright, or if you sell anything that is measured, they control the Weights and Measures, and if you were thinking Foundation or Not for Profit, they're into that too..

But back to the entrepreneur. Did you know that food truck you were thinking about starting? For all your blood sweat and tears, what would you earn? Here's where you'll find what others report.  Now, be careful, especially if it's a cash-based industry, because the numbers here may not be what they actually earn.

https://www.ic.gc.ca/eic/site/cis-sic.nsf/eng/home

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Professionals should consider secure encrypted email services

I just received this email from another accountant today and I quote..

 
"A few minutes ago we received a phishing email from a customer titled as “I have shared an IMPORTANT DOCUMENT” and it asks you to login to your Email account to retrieve the document.

 If you happen to receive an email from our account for similar title and text, PLEASE DELETE THE EMAIL.  Do not open or enter your Email ID or password."
 
Whenever I see phishing email, it scares me how easy it is to be tempted to respond. It's like offering me a chocolate, I have to take my hand away and look the other way to stop the urge to act.
 
and..I am grateful I have an annual subscription to www.e-courier.ca.
 
E-courier provides for my clients to email me documents securely and encrypted, and it's free to my clients to correspond directly with me inside this email service. I invite the client, the client establishes a password. I can send documents to the client, the client can send documents to me, and there's no file size restriction.  We can correspond inside this secure and encrypted service so no one else can read our email.
 
I log in to my account with e-courier.ca to receive the documents when the e-courier service sends me an email to let me know that the client has sent me a document.
 
If you're a professional, and you don't have a secure, encrypted service, I would recommend investigating www.e-courier.ca
 
 
 
 

 

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Parting with such sweet sorrow

On Saturday we had a garage sale. It felt really great to get rid of so much stuff we never use, hopefully to someone else who will use it. 

My biggest thrill was finding a woman to adopt my cross country skis (wood with soft lignite edges, not these plastic boards with metal edges). Those skis were magical, they got me up and down some amazing mountain trails in the Rockies around Banff in my 20's and 30's.  And around here when we would get snow, I'd throw them out to season, and sometimes get Jim across the back fence to apply some wax, and off I'd go until I was too tired to move, but I'd have this huge grin that would last for days.

The bear trap bindings that hugged the backs of the boots and clipped down up front were as shiny as when I bought them 40 years ago in Calgary in a little ski shop in SW Calgary.

The woman was taller than me, but the buttery soft leather boots with down filling fit, and yes, we checked, she could wiggle her toes to keep them from freezing. Those leather boots had metal pieces protecting the flanges on the front to fit in the bear trap bindings. And the blue leather handled bamboo poles, they were still so pretty. I forgot to give her the spare aluminum tip, so if she reads this, please come back for it.

What was bitter sweet were the memories. Gigantic crunchy garlic pickles at the top of Stanley Park Glacier in the sunshine sitting on green garbage bags to keep our bums dry. Drinking from surgical tubing strung over the snowy puffed edges of the Paint or Ink Pots, whichever they were, at the top of Johnston's Canyon just outside Banff on the old road.

Old army wool pants from the Army Surplus by the Stampede, cut off at the knee to adapt to cross country, wool sweaters, and in those days, there weren't gortex jackets, but green garbage bags were perfect for sitting on for lunch, and did double duty as wind protection on the way down. It would take about 2 or 3 hours to climb up, 45 minutes for lunch and 45-75 minutes to whiz down. Days are short in the mountains in winter.

Another memory was the time the temperature was dropping so fast on the way back from a lake that I ended up with about 12 inch blocks of ice all the way down each ski because the wax we figured would work - well let's say it didn't even come close.

There was this couple, I thought they were elderly, but they were probably in their 60's that we used to often meet on those trails. I always thought that I'd be like them, out there in the winter on sunny days with the sun on bright snow in the Rockies. Wasn't meant to be.


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Accounting for lawyers

Resources for accounting for lawyers

  • Sample legal file for legal WIP -
    • http://www.taxdetective.ca/Samples/sampledatafiles.html
      • Scroll down to the middle of page to find the link to a file called
        • Qbb 2011-03-13 - Lawyer's WIP
        • This QBB file is a QuickBooks data file and it has to be saved and restored in QuickBooks before it can be opened
      • This file shows Inventory of unbilled costs as a Current Asset
  • Two articles - ask me for a copy
    • Eileen's Article - QB AA - WIP those Lawyers into Shape - 2006-04 - Reppenhagen, Eileen, Tax Detective
    • Esther Friedberg Karp's Article - QB for Law Firms - Its Street Legal, 2005, Esther
Considering setting up a sample in the QuickBooks Online Plus as a trial file to see how it will work in the cloud version of QuickBooks in Canada.

If this interests you, let me know by email eileen@taxdetective.ca and I'll set up a working class in my new scheduling program

eileenreppenhagen.fullslate.com

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Direct link for 7 pm free webinar Monday evening

Register now for 30 minutes on how to organize your paperwork

If you're self-employed this is for you!

https://eileenreppenhagen.fullslate.com/book?day=2101&services%5B%5D=29&time=68400

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Ten steps to organizing paperwork Monday at 7 pm Pacific Time - free half hour online webinar

I've been thinking about how to communicate about what it takes to keep your records current, and accurate.

Current means up to date, so that if you're wondering where you're at, to estimate your taxes, or if you're wondering who owes you and what your obligations will be, that your books are current.

Accurate means that they are reconciled, and that you've considered the items that didn't balance to determine whether or not they should be recorded because they will happen, and when that will be, or if not, that you've deleted those transactions so they don't confuse anyone looking at your financial statements.

I say this seriously, because every time I look at someone's QuickBooks file, there are entries to the bank that don't belong there that have never been deleted. They'll ask me why their financial statements don't agree with their bank reconciliation. It's because they've never deleted transactions that don't belong on the books.

Not to say you should just go deleting transactions without knowing for sure, but if you've got entries in the bank register that don't reconcile, and they will never clear the bank, the way to deal with them may be to delete them! But if they tie to other transactions in the books, it may be your links to other transactions are linked to the wrong place and that needs revision at the same time.

I'm going to be talking about the ten steps to organizing your records on Monday night at 7 pm Pacific time.

Sign up to attend the 30 minute webinar here and I'll open up the webinar ten minutes early.

If you've never used GoToMeeting.com  before, you can run the free trial, or to make it really easy, load the mobile APP for your iPhone, iPAD or Android device to listen in.  The APP is on their website. 

You won't be talking during the webinar, just listening, but you can type in your questions in the chat room.

eileenreppenhagen.fullslate.com

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Local theatre in Tsawwassen October 2013

I received this email today from Carroll Lefebvre. If you're in the lower mainland, this powerful play may interest you. Here's what Carroll had to say and I quote

 
"In light of Diversity Awareness Month, I invite you to come to see "The Laramie Project" being performed by The Sidekick Players, a local Tsawwassen Acting group, starting Oct 10th and running Thurs, Fri, Sat evenings for 3 weeks, plus 1 matinee on Oct 20th.

What is the play about? The Laramie Project is a TRUE story, about the events leading up to and the aftermath of the brutal beating of Matthew Shepard in Laramie Wyoming in 1998, because he was gay. His beating and death sparked worldwide vigils and protests and was a watershed moment, especially for North Americans. What makes this so unique and compelling is that the play itself is the actual words and conversations that the townspeople had, as they were interviewed by the Tectonic Theatre company that came to Laramie on 6 separate occasions speaking to over 200 people, to find out how this could happen. It’s a very intriguing presentation of the balance of people’s opinions and their actions; the fact that the dialogue said by the actors are the actual words recorded in the interviews makes it so very moving.

I can't say enough about the depth of meaning this play has, it is the most moving experinece I have had in 42 years of theatre.  The crew and the cast are moved to tears on stage during pivotal scenes. Please ask me any questions you have, I would like to answer them, and please consider attending. For more info even a quick search on "Laramie" and "Matthew" will net you a great deal of information."

Location – at the Tsawwassen Arts Centre, 1172 56 St Delta, BC V4L 1C4

Performances - 8pm performances Thurs, Fri, Sat nights Oct 10, 11, 12, Oct 17, 18, 19, and Oct 24, 25, 26. 1 matinee performance on Sunday Oct 20th at 2pm.

Cost - $18 adults, $15 seniors and students (not appropriate for children)

Reserve at 604-288-2415 -If you want to attend, you will need to reserve space (all the seats are assigned) so please call the phone number and leave your name, how many in the party, and the date you want to attend. Cash or cheque at the door (no credit cards).  Seating is limited.

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Filing your back taxes puts you "in" integrity, ergo, you'll sleep at night

Bravery, Responsibility, Integrity and Tenacity.

I'm borrowing the new Britannia HS BRIT acronym this morning because it definitely applies to anyone tackling a backlog of tax returns for a family.

Bravery
The act of starting anything requires a plan. Being willing to plan and execute something of this magnitude when you're this far behind, you're very brave.

Responsibility
Canadian are responsible for filing their own tax returns, and for understanding what those rules are. Not taking responsibility can be very expensive, could cost in penalties and interest if you owe tax, or in lost benefit programs. What programs could you lose out on? I can think of three right off the cuff but there's many programs that require the provision of Net income calculation. 
1) CPP, OAS, GIS top up for old age pensioners
2) Pharmacare
3) Premium assistance reduction on BC Medical plan premiums.
For sure your banker won't provide you with financing if your tax returns aren't filed and tax paid

Integrity
The loss of integrity that comes with non compliance can cause you to lose sleep. Being in integrity means sleeping at night. It's that simple. Out of integrity? You aren't sleeping.

Tenacity
Remember, when tackling a backlog of anything, it isn't going to take any less time than it would have taken if you'd done the work every year. If self-employed, your bookkeeping may take 4-5 hours a month. Multiply that by 60 months for five years backlog, and you're looking at a significant commitment in time, and the cost of assistance by someone qualified to help with the planning, organizing and execution of compliance.
Tenacity is sticking with it.

Catching up may take a few months.
You may choose to request a voluntary disclosure if you meet the criteria. You may need legal assistance. It just got more difficult to communicate with Canada Revenue Agency about disclosure as they no longer accept phone calls due to the volume of work in the system.

It's necessary to complete a form, send it in and expect, that if it's not completed correctly, to get the whole thing back in the mail. In the mean time, if you receive any demands to file, your ability to disclose voluntarily is lost.

Be prepared to be complete
It's necessary to meet all four criteria, especially to estimate how much is owed, and be prepared to pay what you owe.

Oh yes, you only get one kick at the can, so be prepared to deal with not only your taxes, but your GST/HST, and payroll disclosures.

Penalties for non compliance can be significant
An approved voluntary disclosure will eliminate all the penalties but only if you qualify. Voluntary disclosure won't forgive interest. But there is a Taxpayer Relief program that in limited circumstances may be helpful.

For more information about voluntary disclosures
http://www.cra-arc.gc.ca/gncy/nvstgtns/vdp-eng.html

For more information about Taxpayer Relief
http://www.cra-arc.gc.ca/E/pbg/tf/rc4288/

For rates, dates, and penalty information, scroll down to the relevant links
http://www.taxdetective.ca/whatsnew2009.html



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United Way new handbook for caregivers (focus on seniors)


Today is designated as the International Day of Older Persons by the United Nations. United Way has published an indispensable handbook for caregivers of seniors listing information and resources across Metro Vancouver.
 
COPY

United Way of the Lower Mainland News Release

October 1, 2013


     United Way releases new Metro Vancouver handbook

for caregivers of seniors
For anybody who is caring for an elderly family member or friend, or knows someone who is, the new Metro Vancouver Family & Friend Caregivers Information and Resource Handbook  is an indispensable resource.  The guide is a first of its kind supplying key information about the topics caregivers struggle with the most, including housing, health care and the law.

The 100-page handbook includes information on:

·         The full range of community services that help seniors to age-in-place in their own homes (many of these agencies receives grants from United Way)

·         Housing, including information on getting into assisted living and residential care, and a check-list of things to do when a senior has to move

·         Caregiver supports, including United Way-funded support programs and networks in the region

·         The non-medical home support services offered by United Way Better at Home, the government-funded and United Way-managed program soon to be available in many communities throughout the Lower Mainland

·         Health concerns, such as dementia and depression, with information on disease-specific programs and websites

·         Legal issues, including how to prepare a representation agreement, and

·         End-of-life issues and care.

The Handbookis published online at www.uwlm.ca and has been distributed to health authorities, community agencies, and caregiver support networks. Information for caregivers is also always available at bc211, a free information and referral service funded by United Way.

The booklet was made possible through a grant from United Way of the Lower Mainland to Burnaby Seniors Outreach Services Society (BSOSS). Gerontologist and elder caregiving consultant Katherine Willett is the writer and researcher of the guide. She started the project as a resource for Burnaby family caregivers and this summer expanded the directory to include information for caregivers across Metro Vancouver. The handbook will be updated annually.

In 2012, about 8.1 million individuals, or 28% of Canadians aged 15 and older, provided care to a family member or friend with a long-term health condition, disability or aging needs. Ailing parents were the most common recipients of care with 39% providing care to their own parents and 9% to their parents-in-law (Statistics Canada, Caregivers in Canada, 2012).

United Way of the Lower Mainland supports seniors to stay independent, active and connected. We do this by investing in home support services, caregiver and outreach programs to help seniors engage with their community and to live in their own homes, surrounded by friends, families and neighbours.

About United Way of the Lower Mainland

United Way is a charitable organization established over eighty years ago to support those in need in Metro Vancouver. We fund more than 150 agencies throughout the Lower Mainland to provide 450 programs and services to help children, families and seniors across the Lower Mainland. United Way of the Lower Mainland is dedicated to creating healthy, caring and inclusive communities by breaking the cycle of poverty, helping school-age children make the right life choices, and supporting seniors to age with dignity.

Media contact:

Jennifer Young

United Way of the Lower Mainland

604-268-1333, cell 604-309-3937


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