We Owe How Much? … OUCH!

Manage cash flow better by projecting future tax liabilities. Unforeseen circumstances often leave owner-managers short of the cash needed to pay federal and provincial taxes. Unfortunately, many owner-managers consider unpaid tax bills to be the same as unpaid trade credit. They are not. Unpaid taxes can cause a lot of problems. Ensuring funds are available to pay obligations to the Canada Revenue Agency (CRA) should be a top priority for any business, whether incorporated or a sole proprietorship.
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The Little Black Book of Scams

A few common-sense strategies can protect your business from external fraud. Scams and frauds are probably as old as humanity, but recently they have taken a new turn with the arrival of the Internet and the development of sophisticated telecommunications technology. The Government of Canada has reacted by setting up the Canadian Anti-Fraud Centre, and the Competition Bureau has published a valuable handbook called The Little Black Book of Scams (full text available at www.competitionbureau.gc.ca), which describes 12 important classes of scam and how to protect yourself against them.
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CPA Canada Federal Budget Commentary 2018

The Federal Government’s 2018 Budget touts Canada’s strong economic growth over the past two years, including real GDP growth of 3.2 per cent since the second quarter of 2016, an unemployment rate of 5.9 per cent, and significant improvements in average weekly earnings, consumer confidence, and household consumption. The Finance Minister expects similar growth in the near-term. In addition, federal revenues increased by more than 11 per cent in 2017, largely from personal and corporate income taxes.
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For the Record

To run an owner-managed business successfully, it is not enough just to track the movement of funds in and out. Statements providing the type of information needed by your external CPA are also essential because the external accountant is the intermediary between your business and the Canada Revenue Agency, creditors, a potential buyer and others who need the special financial statements only your external accountant can produce.
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Financial Statements for Your External CPA

To run an owner-managed business successfully, it is not enough just to track the movement of funds in and out. Statements providing the type of information needed by your external CPA are also essential because the external accountant is the intermediary between your business and the Canada Revenue Agency, creditors, a potential buyer and others who need the special financial statements only your external accountant can produce.
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Registered Retirement Savings Plans

The 2017 RRSP contribution limit is 18% of your 2016 earned income to a maximum of $26,010. (For those who have not topped up every year, this is the additional room now available.) Earned income includes self-employed net income, net income from a partnership, payments from supplementary unemployment benefit plans, CPP/QPP disability payments, salary, wages, taxable alimony or maintenance received, royalty and net research grants and net rental income.
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Investing for Retirement

Saving for retirement can be approached in several ways.

Media ads constantly bombard us with images of happy, attractive couples enjoying their retirement years on a sunny beach in Jamaica or on a cruise ship in the Mediterranean. But to reach that dream, it is necessary to invest today’s earnings so that they will grow into tomorrow’s retirement fund.
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Small Business and the CRA

Ensure your books are always in order for the CRA.

Owner-managers work hard in their businesses but are often overwhelmed by the reporting requirements for the Canada Revenue Agency.
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Changes to Income Tax Rules for 2017

Be aware of changes to the income tax rules that will affect your 2017
filing.

For those already thinking about their 2017 income taxes, the following summarizes some of the changes from 2016.
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The Tax Refund Myth

A “tax refund” is really just the CRA giving you back your own money.

“The government gave me money back” is a common phrase often heard after the April 30 or June 15 filing deadline. The truth is that the government is…
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