taxdetective-Sandusky-Register

It's tricky how the new PST works. I am SO NOT comfortable with what's taxable and what's exempt. Anyone else feeling that way?

Everything is couched in double negatives, or at least that's how it appears when you read it.

They don't say don't register, or you should register, they say you have the option to register and give a list of what you'd have to fall into in order not to register

... if ALL of the following apply..and here's the list of the 7 things that ALL have to apply:

1) you're located in BC, and don't have a business premise - e.g. you sell goods from your home
AND
2) you sell taxable goods or software, or provide taxable services
AND
3) you don't regularly sell liquor, vehicles, boats or aircraft
AND
4) you make $10,000 or less in gross revenue from taxable sales and services
AND
5) you're not a lessor
AND
6) you're not an independent sales contractor (no idea what that is and of course the BC Gov't website with the PST information isn't searchable) but somewhere else in the FAQ, they added real property contractor as not qualifying either
AND
7) you don't offer four or more units of accommodation

Why would you want to register?  To purchase your goods for re-sale exempt of PST.

If you  pay the PST on what you sell, and you meet ALL of the 7 criteria above, you don't have to register, charge and remit PST

I found this on the one page PST Registration Quick Reference PDF (it was emailed to me, may not be on their website, not sure as it's not very searchable)

Then, in the FAQ, there's an example of bakery, where the tax on taxable goods is $500, but sales are more than $10,000 for eligible goods. And they have to register. Now is that because their sales are over $10,000, or because they don't have a home location? No clue.

If the tax you collect per year is over $12,000, you must file monthly.

If you collect less than $12,000, but more than $6,000, quarterly or monthly

If you collect less than $6,000 but more than $3,000, quarterly or semi-annual

And, if it's less than $3,000, annual, semi-annual or quarterly

So, it woudl seem that if your taxable sales are under $42,857 (with 7% PST) you should be an annual filer, but may choose to file more often.

Has anyone received their filing frequency notification?

You'll be able to file oline at something called eTaxBC, and pay with internet banking.

There's a commission structure again too. Commission is similar to the old structure where under $22, it's the amount payable, between $22.01 and $333.33 it's $22.00 and over that 6.6% of tax to a maximum of $198.  $3,000 x 6.6% is $198 (maximum)

Everyone should make it their responsibility to look out for those around them, and that includes letting those around you know there are reasons to file a tax return, especially for low income families or individuals, there are incentives to file.

To name several, the GST Credit, the Working Income Tax Benefit, the Refundable Medical Expense Supplement. These three alone can add up to thousands of dollars in refunds if returns are correctly completed.

Then there's the credits for supporting other dependent family members, which got a kick of another $2,000 if those dependents are infirm. I've been writing about the family caregiver amount, $2,000 bump that equates to $300 per infirm dependent for the past year.

Read how one doctor feels about making sure his patients file their taxes and maybe there's someone in your family or neighbourhood who could use a hand in filing their returns to improve their financial situation? There are free clinics this time of year, and maybe if you helped them get organized with their paperwork, they'd get it done.

http://www.winnipegfreepress.com/fpnewsvoices/doctor-prescribes-tax-returns-to-low-income-patients-199490231.html?domain=fpnews

The latest federal budget is full of news about how they are going to be operating in a more 'austere' manner, and that probably means there won't be as much help for the low income filer who is behind on their filing for prior years. I encourage you to lend encouragement or even help someone get organized so they can file.

And kudo's to this doctor for being brave enough to speak up to say yes, this matters to the health of my patients, that they file and that they get the credits they are entitled to claim. How does your doctor react when asked to complete more paperwork?

What's next you ask? Great question. Keep an eye on the Mark your Calendar page on my website for an event near you.

Thursday's talk could change how you handle the paper in your life - forever.
www.protechtivity.ca

ProTECHtivity workshop is this week, Thursday, in Delta at the T&C (right by the tunnel)

There are at least two reasons to attend this full day workshop.

First, if you're an accountant or a bookkeeper, it qualifies for PD points...

Second, you'll be connecting with other people who think it's worth learning about how to save time by using technology to best advantage.

Third, you'll get a lifetime supply of my 24 Fillable Forms
(only if you attend my talk Too Much Paper | Never Enough Time)

And... there are prizes for random tweets, so use my Twitter ID @TaxDetective and #protechtivity hashtag and we'll monitor traffic for a door prize!

Use my guest promo code, for 20% off  | taxdetectiveguest | even if you don't attend my session...there are six speakers over the day and I'm really exciting about being part of this amazing event!  See you there.

Click here to visit the ProTECHtivity webpage to sign up now!

This isn't a new challenge and you aren't alone.

http://njnnetwork.com/2011/01/wife-of-canadian-with-disability-wins-historic-tax-case-against-cra/
I don't know if this is a solution, but here's Lembi Buchanan's plea, over 10 years after winning her case at the Supreme Court www.disabilitytaxcredit.com

The way our tax credit system is set up at the moment, doctors are being required to document claims for tax credits so you can get a reduction in your tax bill. Let's talk about this. What's the reason for this tax credit? Is it about giving you a break? Or is it about getting information about the health of families in our nation? One does have to wonder.

There's a serious flaw in this process.  First of all, doctors aren't tax experts. They don't know what the rules are. They are expected to not do harm. Is it really fair that we ask them to document the effects of disability or infirmity when patient's don't even live with the doctor?

The doctor may only see the patient every few weeks or months. Disabilities are often invisible. The only evidence may be anecdotal. The doctors aren't the caregivers, available 24/7, so how much do they really know about the effects of the impairment? Are we asking them to do something they don't have enough information to do? Why should this additional responsibility be put on those who care for our health. Not our financial health, our physical and mental health.

Doctors don't have time to care about your financial situation, nor should they have to. FYI, your doctor may be quite envious that you're entitled to these tax credits. Why? Doctors pay GST/HST on business expenses, and because they are exempt from charging tax, they don't get back input tax credits for some large business expenses like rent, and common area costs associated with their business.  They also pay tax on their top dollars earned at a much higher rate for every dollar earned than you do if you aren't in the higher income tax brackets. Doctors know that for a child with a disability, for a claim going back 10 years, there's possibly a refund for the family of over $30,000. Imagine how they feel. All they charged is $50 or $150 for form completion, and then they had to defend their request by completing additional extremely invasive questionnaires that you didn't even see. And they have patients who need them, patients who may die if they aren't getting enough sleep and make a mistake.

Now, in 2012, to add insult to injury, the federal gov't adds another requirement for documentation of the state of taxpayers health, this time in the form of another refundable tax credit, the 'Family Caregiver Amount' which is a federal credit of $2,000 added to five different types of dependants, providing the supportive family with $300 federal refund per dependant.  Spouse, child, parent or any relative over 18 with an infirmity, who lives with you, or doesn't live with you...all for a $300 tax reduction but that's per person. If you have several people in your family with an infirmity, you can claim that amount in addition to the usual dependant credit for each one you can get a doctor to write a letter for.

I don't blame doctors for being furious at tax preparers who suggest their clients ask the doctor if it's appropriate to complete a T2201 or a letter of infirmity. But hey, we are caught in the middle. Tax preparers don't know enough, all we know is what our clients tell us. We have an obligation to suggest they at least try to get the doctor to consider whether the claim is viable. I've heard stories of how doctors are furious with tax preparers for even suggesting or informing their clients these credits exist.

There has to be a better way than requiring our over-worked medical professionals from becoming advocates for taxpayers finances. I for one, was very frightened and am still coming to terms with the raw rage exhibited by one doctor at being asked about completing the disability form and/or a letter of infirmity. I have no idea where the rage came from, and can only assume something horrible happened and this request sent that doctor over the edge. How close to the same rage is your doctor? Do you dare ask for documentation of disability or infirmity?

Ask your Member of Parliament to have a discussion with their own doctor to see how far they get with requesting disability or infirmity documentation.. Let's get the discussion going on how this isn't a tenable situation and something has to be done to relieve the pressure.

Per Statistics Canada, a few years ago now, there were already 2.7 Million Canadians with a disability. How many doctors are there? What on earth are we thinking asking them to do all this paperwork on our behalf?