Income sprinkling

As proposed, the ability to split income to your spouse and between family members will be greatly restricted. The tax on this split income will have a reasonability test component implemented and income splitting to related family members may be subject to kiddie tax (effectively tax at the highest marginal rates in Canada). The consultation paper also proposes to limit access to the capital gains exemption to certain individuals and Family Trusts. This may increase the tax on the sale of certain small businesses when the transaction relates to the sale of shares.

The changes are expected to be effective in 2018.

Passive Investments in Corporation

The Federal Government is proposing is to eliminate the ability of corporation to generate additional capital through income being taxed at small business rates and using that tax deferral to buy passive investments (stocks, rental real estate properties, GICs), rather than investing directly back into their business by means of high wages for employees, new machinery or other methods to improve productivity etc. The Federal Government is still seeking significant feedback on this topic. However, the new tax system regarding holding passive investments is expected to be complicated for many small business owners and the compliance cost to be quite high.

The timing on implementation on this part of the proposal has not be specified.

Corporate Surplus Stripping

The Federal Government is expanding its rules with regards to corporate surplus stripping. It will limit certain tax planning methods involving the ability to extract corporate surplus normally taxed as a dividend rates to be taxed at capital gains rates.

The changes for implementing these new corporate surplus stripping rules will be effective on amounts received or receivable on or after July 18, 2017.

Job Type:

• Full-time

Required experience:

• Public Accounting firm: 3 years

Responsibilities include the following:

• Compilation of financial statements, preparation of working paper files, and various other accounting assignments;
• Preparation of personal and corporate tax returns,
• Responding to the inquiries and requests of CRA,
• Preparation of T4/T5 and T5018 filings
• Assisting with the month-end and quarter-end bookkeeping on a timely and accurately basis including GST and payroll
• Supervising and training other members of the bookkeeping team
• General client support and services.

Qualifications:

• Minimum of three years’ experience working in a public accounting firm;
• Working knowledge of Sage 50 and QuickBooks Online/Desktop;
• Experience with CaseWare and Taxprep tax preparation software or other tax preparation software;
• Detailed and results oriented individual with the ability to adhere to strict deadlines;
• Ability to multitask and ability to work longer hours at certain times of the year;
• A self-starter and ability to work in a team environment with limited supervision;
• Ability to communicate proficiently about accounting and deadlines in layman terms;
• Having a Bachelor Degree or Diploma in Accounting an asset;
• Excellent English communication skills, both written and verbal;
• Being able to communicate in a second language proficiently an asset.

Compensation:

• Expected base salary range is competitive with the market, dependent on qualifications and experience
• Paid overtime or time off in lieu of overtime;
• Flexible work week during the summer months;
• Profit sharing ability;
• Continued professional development.

Public transit tax credit

Budget 2017 proposed the elimination of the public transit credit after June 2017. This means that even if you paid an amount before July 1, 2017 for a public transit annual pass, which is valid after June 30, 2017, you will have to prorate your cost to determine the amount paid that is for the period from January 1 to June 30, 2017.  No amounts paid for transit after June 2017 is eligible for a credit.

Ride-sharing drivers

Effective January 1, 2017, all the self-employed commercial ride-sharing drivers (i.e. Uber) have been required to register, collect, report and remit GST/HST, regardless of their total annual revenues from ride-sharing.

New Back-to-School Tax Credit for BC

Subject to the approval of the Legislature, the B.C. Back-to-School Tax Credit is a new, non-refundable tax credit of $250 per child providing a benefit of up to $12.65 per child.   Eligible BC resident parents must have a child turning an age from five to 17 in the tax year.

Consolidation of caregiver credits

Effective January 1, 2017, the budget proposes to consolidate the infirm dependant credit, the caregiver credit and the family caregiver credit into the new Canada Caregiver Credit (CCC). In most cases, the proposed changes will not restrict your credits. The main changes will be that the caregiver amount for in-home care of your parent or grand-parent who is not infirm will no longer be available and you are no longer required to live with the dependant to claim the new CCC.

Medical Expenses Tax credit (METC) – Reproductive Technologies

The Budget 2017 proposed changes in the application of the METC for reproductive technologies. The costs incurred for a medical intervention required in order to conceive a child that were previously not allowed as a medical expense are now eligible for a tax credit. The expenses incurred in the previous 10 years may be claimed. Amounts incurred in 2007 must be claimed by the end of 2017.

If you believe that you have incurred these amounts between 2007 and 2016 and need assistance in filing an adjustment, please contact our office to see how we can help you.

Elimination of various tax credits

In addition to the elimination of the public transit tax credit, the proposed changes will eliminate other credits, including the children’s arts amount and children’s fitness tax credit, along with the investment tax credit for child care spaces and the deduction for eligible home relocation loans.

Please note that the provincial counterpart of those credits may still be there even though they have been eliminated on the federal level.