Donna Mazerolle & Associates Newsletter
Issue 1 – May 2011
How 3 of Canada’s Tax Laws Could Affect Your Business
Canada’s tax laws are many, and while it’s not the most exciting reading, it does pay to be aware of your obligations.
In this and future newsletters, Donna summarizes some recent tax rulings, tips and comments that could impact your business. It’s best to take a minute or two to review the following, and take note if they apply to your situation. Being aware, ahead of time could save you money and problems down the road.
Should you have any questions about the topics below, or need guidance on strategy, business plans, accounting or bookkeeping for your business, call Donna Mazerolle at 506-657-4067 or contact us .
PLACE OF SUPPLY RULES
In a June 3, 2010 52-page Release, CRA provides information on the Place of Supply Rules for purposes of GST/HST for determining where a supply is made. In general, the place of supply is the address of the recipient of the service or, where the good is delivered. This is important because of the different GST/HST rates – British Columbia, 12%, Ontario, New Brunswick and Newfoundland 13%, Nova Scotia 15% and other jurisdictions 5%.
It is important to note that provinces that still have a Provincial Sales Tax, such as Saskatchewan, Manitoba, Prince Edward Island and Quebec may have different Place of Supply Rules
CANADA PENSION PLAN (CPP)
New legislation includes many changes to the Canada Pension Plan, most of which take place in 2012.
For example, in 2012 individuals under the age of 65 who work, as well as their employers, will be required to make CPP contributions, even if they are receiving a CPP retirement benefit early. This will be voluntary for individuals age 65 or over, but employers of those opting to participate in the CPP would be required to also contribute.
SCHOLARSHIPS FOR THE CHILDREN OF EMPLOYEES
In a September 29, 2010 External Technical Interpretation, CRA notes that they now accept that where an arm’s length employer provides a post-secondary scholarship, bursary or free tuition to family members of an employee under a bona fide Program, the amount may be non-taxable.