NALH Bookkeeping » Tax News

Making the Most of HST While It’s Here

NALH Bookkeeping Services — Wed, 14 Dec 2011 18:56:47 +0000

The HST (Harmonized Sales Tax) in BC has been a topic of debate since well before it was even introduced. Now that the voters have spoken and HST will be repealed, focus is turning to how to take advantage of it before reverting back to the old GST/PST system.

SmallBusinessBC.ca has a great article by North Vancouver accountant Gabriel Loren about ways you can benefit from HST while it’s still in effect.

As of March 31, 2013, small business owners across the province will face a big change as the HST system will be reverted back to PST/GST. What this means for small businesses operating in British Columbia, and businesses that have clients in BC, is that until March 31, 2013, you will need to continue to charge your clients in accordance with the current HST rules.

CLICK HERE TO READ THE FULL ARTICLE FROM SMALL BUSINESS BC >>

HST is Out – Now What?

NALH Bookkeeping Services — Fri, 04 Nov 2011 17:27:42 +0000

The ballots have been cast and the decision made. The HST in BC has been repealed. Now, the government is presented with the task of reinstating the GST/PST mode.

If you’re wondering what will happen now, you’re not alone. For many BC residents and entrepreneurs, questions abound. When will PST be re-implemented? Will we continue to pay 12% HST in the meantime? Will the PST work the same as it did before HST?

The HSTinBC.ca web site answers questions and many more, in addition to providing information about on how the taxes – old and new
– apply to consumers and business owners.

CLICK HERE FOR MORE INFORMATION >>

BC Voters Opt to Repeal HST in Referendum

NALH Bookkeeping Services — Fri, 09 Sep 2011 18:15:18 +0000

Whether you love it or hate it, the Harmonized Sales Tax (HST) in BC is soon to be a thing of the past. 55% of the 1.6 million BC voters who cast their ballots in the referendum opted to repeal the tax. So, the work now begins to re-instate the former GST/PST model of taxation for the Province of BC.

Interested in learning more about the results of the referendum and what reverting back to the GST/PST model could mean for your business?

CLICK HERE FOR MORE INFORMATION >>

Chairman of Vancouver Board of Trade Supports Keeping BC’s HST

NALH Bookkeeping Services — Mon, 20 Jun 2011 21:41:50 +0000

See below for a message from Jason McLean, Chairman of the Vancouver Board of Trade on why he believes keeping the HST is beneficial for business in BC.

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MESSAGE FROM THE CHAIRMAN of the VANCOUVER BOARD OF TRADE

Support the HST

The HST Referendum begins this week. You will receive a ballot by mail and asked to return it — with your vote — to Elections BC by July 22, 2011 and I urge you to review the facts and make an informed decision on which tax system is better for British Columbia. After considerable discussion and review, The Vancouver Board of Trade has concluded that the HST is, without question, the better system.

The HST replaces an expensive, cumbersome tax system that was heavy on red tape and low on value. It replaces two taxes with one tax — and with government legislation now passed to reduce the HST from 12% to 10% over the next three years, the HST will undercut the combined PST/GST taxes by a full two percentage points if accepted.

HST is the right tax system for our times. It is a key component in creating a competitive environment that will create jobs, reduce red tape, attract new business, and more efficiently and fairly generate the revenues necessary to pay for the things we care about. I urge all members to educate themselves and their employees and join the growing contingent of informed and forward-thinking citizens who support the HST.

The Positive Impact of the HST

At 10%, the HST will be two points lower than the 12% PST-GST
The average B.C. family will now pay $120 less per year than they did under the PST/GST
In addition to low-income families receiving up to $230 per person in HST credits, children and seniors will receive annual transition cheques of $175 until the 10% HST rate takes effect
83% of small businesses support a 10% HST according to the Canadian Federation of Independent Businesses
The HST is an efficient consumption tax with no loopholes, exemptions for special interest groups or deductions
The HST taxes the growing part of our economy — services — thereby providing $800m additional revenues British Columbia needs for health care and education by 2014
The HST removes tax duplication throughout the value chain — eliminating the costly compounding effect of PST which was applied at every level from raw materials right through to the retail level

It is time to turn the page and move forward.

Please note that to keep the HST you must vote NO on the ballot.

Remember, it is important to take a stand on this important issue.Â

For more information on the economic benefits of keeping the HST, please go to:
www.hstinbc.ca or www.hstjobs.ca

Yours truly,
Jason McLean, Chairman,
The Vancouver Board of Trade

Yay or Nay? How Will You Vote on the BC HST Referendum?

NALH Bookkeeping Services — Wed, 15 Jun 2011 22:32:05 +0000

BC’s Harmonized Sales Tax (HST) has been a hot-button issue since it was initially proposed and even more so after it was brought into effect. The HST has been so controversial that petitioners were successful in their efforts to have a referendum by BC voters on whether to rescind the tax and revert back to the GST + PST tax system or to keep the HST in effect.

In an effort to appease voters, the BC Government has passed into law an agreement to lower the HST rate from 12% to 11% in 2012 and to 10% by 2014.

Will you vote Yes to repeal the HST or No to keep it? As is the case with any election or vote, the decision is a personal one and is best made from an informed point of view.

Educate yourself on the pros and cons of keeping or rescinding the BC HST by visiting: www.hstinbc.ca

Self-Employed Tax Returns Due By June 15, 2011

Kaitlyn — Fri, 13 May 2011 19:16:00 +0000

If you or your spouse or common-law partner did business as a sole proprietor or if you have business income in addition to any money you earned as an employee of a company, the deadline for filing your tax return is on or before June 15, 2011.

CLICK HERE FOR MORE INFORMATION ON THE CRA WEB SITE >>

Tax Time Is Here Again – Deadlines To Remember

NALH Bookkeeping Services — Fri, 22 Apr 2011 18:11:12 +0000

As the saying goes, time flies and another tax year has come and gone. Check out CRA’s web site for important tax filing deadlines, including the following:

INDIVIDUALS – on or before April 30, 2011
SELF-EMPLOYED PERSONS – on or before June 15, 2011

Please note that any tax owing is due on or before April 30, 2011 for both individual and self-employed taxpayers, so make sure to remit any amounts owing to CRA before that date to avoid penalties and interest.

CLICK HERE FOR MORE INFORMATION >>

T4 Filing Deadline – FEBRUARY 28 – What should you supply to your bookkeeper?

NALH Bookkeeping Services — Thu, 17 Feb 2011 01:08:11 +0000

Deadline for filing T4s is February 28, 2011 for the calendar year 2010 for all employee wages and taxable benefits.

In order to prepare accurate T4 forms on behalf of a company, a bookkeeper needs a complete set of books to be able to see all wages and benefits that employees have earned during the filing period (the previous calendar year).

If employees receive taxable benefits above and beyond their salary or other wages, the value of those benefits needs to be added to the T4 calculations.

When providing your information to your bookkeeper, be sure to list any benefits that are taxable that were paid to employees throughout the year. Making sure your T4 preparer has all the info they need to process your forms efficiently and accurately.

How Will the HST Debate Play Out?

NALH Bookkeeping Services — Fri, 17 Sep 2010 23:57:10 +0000

Business in Vancouver has reported on the latest in the ongoing efforts to get the recently-launched Harmonized Sales Tax (HST) in BC overturned. How will it play out? Looks like we’ll have to wait and see.

What are your thoughts on how keeping or nixing the tax could help or hurt your business?

Here’s an excerpt of the article from BIV:

While a province-wide referendum on the HST is good for democracy in B.C., it will likely create an unprecedented level of uncertainty and hinder investment in the province.

Jock Finlayson, executive-vice-president of policy for the Business Council of BC said, “I don’t have any criticism or concern specifically with what the legislative committee has recommended, but it is uncharted waters. We don’t have much experience in Canada and in B.C. with this kind of situation. We’ve been surprised, so far how this issue has played out and maybe there are more surprises to come. I think there’s just a lot of uncertainty around it.”

On Monday afternoon, the legislative committee exploring the options for the anti-HST petition organized by former premier Bill Vander Zalm voted to put the HST to a non-binding public referendum next September rather than draft a bill to scrap the HST and have it voted on in the legislature this fall.

Premier Gordon Campbell subsequently said the government would abide by the referendum’s result.

Read the full article on the Business in Vancouver web site.

More Information on HST

NALH Bookkeeping Services — Fri, 06 Aug 2010 17:03:20 +0000

With the implementation date of the HST now in effect, be sure to check out the following list of web resources to learn more about the new Harmonized Sales Tax and how it will affect you and your business.

BC GOVERNMENT

CANADA REVENUE AGENCY

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CRA Releases New Rates for Simplified Meal & Vehicle Expenses

NALH Bookkeeping Services — Thu, 29 Jul 2010 21:35:15 +0000

For meal expenses, the simplified rate is unchanged from 2008, a flat rate of $17 a meal or $51 per day, per person is allowed without receipts. If you choose the detailed method, you must keep your receipts.

For the simplified method of claiming vehicle expenses for trips relating to the northern residents deduction, moving expenses or medical expenses, the number of kilometres driven during the year may be multiplied by the appropriate cents/km rate below for the province in which travel begins.

Read the full article on the Knowledge Bureau web site.

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100% Depreciation on Computer Equipment & Software for 2009/2010

NALH Bookkeeping Services — Wed, 28 Jul 2010 17:48:54 +0000

To encourage investment by businesses in computer systems and related peripherals, the Income Tax Regulations were amended on May 13, 2009 to add new Class 52 to Schedule II with a 100-per-cent tax depreciation rate for eligible computers and software acquired after January 27, 2009 and before February 2011.

Visit the CRA web site for more information.

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HST-Related Reading

NALH Bookkeeping Services — Mon, 26 Jul 2010 17:27:32 +0000

Canada Revenue Agency
Bulletin B-103: Place of Supply Rules for Determining Whether a Supply is Made in a Province.

The Tax Detective
We also recommend checking out Eileen Reppenhagen’s web site, the Tax Detective. Eileen’s site includes links to a wealth of bulletins, articles and other information related to HST.

Fraser Institute – Countering the Myths Surrounding HST
The Fraser Institute authored a study that addresses many of the myths and misunderstandings about the HST, highlights the shortcomings of the current provincial sales tax system, and explains the differences between the PST and the harmonized sales tax.

Government of British Columbia HST Blog
The BC government has published a variety of articles related to HST and how it relates to and affects different industries and consumer groups.

This article is an excerpt from the NALH e-Newsletter. Click here to read the current issue.

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CRA Policy Shift on Employee Benefits

NALH Bookkeeping Services — Mon, 26 Jul 2010 16:18:02 +0000

Administrative Policy Changes for Taxable Employment Benefits to reduce a number of administrative difficulties and increase fairness include:

Overtime Meals and Allowances Provided to Employees
Municipality or Metropolitan Area
Loyalty Programs
Employer Provided Motor Vehicles Required to be Taken Home at Night
Non-cash Gifts and Non-cash Awards
Surface Transit Passes Provided to Family Members of Transit Employees

Read the full article on the CRA web site.

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GST/HST Notices & Technical Bulletin List

NALH Bookkeeping Services — Thu, 20 May 2010 20:29:18 +0000

CRA has compiled a list of notices and bulletins with regards to GST/HST. The list includes information sheets on transitional rules, along with question and answer bulletins for specific areas of concern.

Download the bulletin list in PDF format from the Curriculum Services Canada web site.