News & Views

February 2010

Teed & Company has been voted as the Best accounting service of Surrey/North Delta 2009 in Now Newspaper's recent Reader's Choice Poll.

The Now's Best of Surrey Reader's Choice Poll results was published in a special section in January 29, 2010 edition.

NOVEMBER 2009

NEW CRA FILING RULES

Commencing with January 1, 2010 if you, as an employer, file more than 50, T4, T4A, T4RSP, T4RIF, or T4A-NR information returns (slips) you are required to file them electronically. However, there is a one year transition period ending January 1, 2011, if you are non-compliant at that date an 搃ncorrect filing format penalty?may be assessed.

INDIVIDUAL PENSION PLAN (IPP)

If you are a business owner, incorporated professional, or key employee with annual T4 income of at least $116,000 and are between the ages of 40 and 71 this may be an attractive tax planning move for you. Some advantages are;

• In addition to the contributions and expenses of the plan being tax deductible by your corporation you will be able to split the pension income with your spouse.
• Contribution limits are generally higher than for RRSP抯.
• You may be able, under certain circumstances, to make past service contributions
• The assets of an IPP are generally protected from creditors under provincial pension legislation.

We are working closely with a local broker and an actuary and would be pleased to discuss this opportunity with you.

October 2009

MAKE YOUR BUSINESS MORE FRIENDLY

I recently read several articles about a new trend in marketing your business and making it more friendly at the same time.

Most of us over 40 recall a time when there were no cell phones, personal computers, ipods or Blackberries. Those in their 20抯 don抰 remember a time in their life when these things didn抰 exist. Now they are a part of our daily life. But are we using them in business to their full advantage? What seems to be an upcoming trend is to use Twitter, Facebook, LinkdIn and blogs as additions to their existing website. An increasing portion of the market we are trying to reach with our goods or services use this technology to some extent. This is a great opportunity to reach a massive audience quickly and with minimal cost.

For example if Teed & Company had a Twitter account I could be sharing this information in a Tweet. There are many things you can use these communities for; announcing changes in your business, upcoming products or events, new developments in your industry. The whole point of this it to ensure that you keep your company 搕op of mind?with those you build into your Twitter community. According to many this is the way of the future, using technology to advance your business. Seems we have been doing this all along since the Industrial Revolution. The difference now is that the technology changes so quickly it is sometimes hard to keep up.

If you are already Tweeting in Twitter or writing on someone抯 Wall in Facebook and try the suggestion of using for business send me an e-mail at and let me know how it has worked out. If you aren抰 doing this stuff now is the time to start!

January 2009

MORE ON THE NEW TAX FREE SAVINGS ACCOUNT

Here are some advantages of the new TFSA:

• While the original deposit, up to $5,000 per year is not tax deductible, any income earned from it and all withdrawals are tax free.
• The TFSA does not affect RRSP contribution limits.
• Income earned from the TFSA is not included in income supplement calculations for Old Age Security.
• The TFSA is not age limited as with RRSP抯. In other words the TFSA can be used after age 71.
• In our opinion this savings vehicle is useful for those approaching 71 in age, those who maximize their RRSP contributions each year and want to make further investments.
• Our advice to clients when making RRSP contributions is to ensure, to the best of their knowledge at the time, that funds deposited will not need to be withdrawn. With the TFSA there is no need for concern as there are no tax consequences to ANY WITHDRAWLS.

MORE ON DONATION TYPE TAX SHELTERS

• CRA has announced that they will be investigating ALL of this type of tax shelter.
• Be aware that many people who have invested in these shelters in the past have been reassessed and have paid additional income tax plus penalties and interest.
• The tax shelter number is ONLY a means of identification it does not mean it is approved by CRA.

REDUCE YOUR 2008 INCOME TAXES

Send us an e-mail to info@teed-cga.com and we will be pleased to send you a copy of this brochure by return e-mail.

ATTENTION - STRATA CORPORATION OWNERS OR PROPERTY MANAGERS

• At present we are the external accountants approximately 20 commercial and industrial strata corporations in the lower mainland.
• Many owners are unaware that because Strata Corporations are corporations they are required to file corporation income tax returns. In the event that the Strata is owed a refund on GST payment of the refund will not be made unless the Corporation Income Tax returns are filed up to date.
• Having an independent accounting firm preparing year end statements and tax returns also provides oversight of the monthly bookkeeping function. As well adding an internal control it provides us with an opportunity and business advisors to assist you in the financial areas of the operation.
• This is an area of our practice that we are looking to expand and would be pleased to discuss the services we can provide to you ?phone or e-mail Brian Teed, CGA or Ida de-Heer-Amissah, FCCA, CGA.

OPPORTUNITIES YOU CAN TAKE ADVANTAGE OF IN TOUGH ECONOMIC TIMES

The following is an article written by Gary Chomyn, President of New Media Sales & Management Co. Ltd. and a client of ours. This is the best piece I have read regarding taking hold of opportunities in our current economic situation as opposed to laying low and not taking any chances.

I believe there is a positive message here for everyone not only business people.

揚URSUE YOUR DREAMS ?OR HUNKER DOWN?

I've just about had it with the news headlines. "Times are tough and they are going to get tougher...prepare for the crisis to worsen....blah, blah, blah" and it goes on...

If we all believed the news and took heed of the cautionary words of "wiser men" none of us would be doing what we are doing today...

Remember when we all took the big chances in our lives....and took the path less traveled? There were huge risks, but we believed in ourselves and we had the energy and the determination to get what we wanted. We made things happen, and a lot of that hard work was done during recessions... while others were hunkering down.

In my opinion too many people today are afraid and because of it are "hunkering down". I've been guilty of using these words too... and effective today, that's over. There are tons of opportunities available, FOR EVERYONE...have you figured out yours?

Here is something to consider, compiled by author Roy H. Williams:

The 7 Steps to Hunkering Down:
1. Stay scared. Call it "street smart."
2. Cultivate cynicism. Call it "straight talk."
3. Praise pessimism. Call it a "reality check."
4. Believe you are wiser than everyone else.
5. Feel secretly superior.
6. Take no action that might improve your condition.
7. Crow "I told you so" when things get worse.

The 7 Steps to Pursuing Your Dream:
1. Know what you're trying to make happen.
2. Expect good things to happen for you.
3. Plant seeds of good things daily.
4. Trust that some of your seeds will grow.
5. Measure success by your own criteria.
6. Make progress daily without fail.
7. Believe in the power of the "Elbs"..."Exponential Little Bits" These are small steps you take every today to help you live your goals and dreams. If you want more on this ASK ME...

So what's your plan??

The next few years will see new champions and new business leaders emerge. Leaders dream and accomplish their goals, while others hunker down!

Have a great day.

Gary Chomyn, CMM?/p>

Gary is a Marketing and Management Consultant who works with clients in BC and Alberta. He can be reached at 604-805-1256 or gc@newmediaADgroup.com For more on his company go to www.newmediaADgroup.com

November 2008

PREMIER GORDON CAMPBELL ANNOUNCES ECONOMIC RELIEF MEASURES

The premier announced the following 10 measures during his October 22, 2008 address;

• Unlimited deposit insurance for credit union deposits
• New private sector pension plan for those with no access to a pension plan
• Retroactive personal income tax cut – retroactive to January 1, 2008 – 5% rate reduction. This is in place of the 2% and 3% cuts that were to commence July 1, 2008 and January 1, 2009 respectively.
• 50% school tax rebate on property taxes for all light and heavy industry
• Accelerated tax relief for small business – Effective December 1, 2008 a 1% reduction in addition to the 1% reduction on July 1, 2008.
• Double commissions for business who collect PST and hotel room tax.
• Accelerated public infrastructure projects not requiring long lead times to keep people employed in the construction industry.
• 33% reduction in BC Ferry fares for December and January.
• Rein in avoidable government spending
• Recall the legislature on November 20

STUDENT HOME BOARDING FEES

• Homeowners who are paid to board students in their homes while the student attends a local school need to be aware that these fees may be considered taxable by CRA. This is the result of a technical interpretation and would be applied on a case by case basis. However, reasonable expenses incurred by the homeowner to provide the services to the student may be deducted from the fees received by the homeowner. Homeowners who participate in these programs need to keep a record and the receipts for all expenses incurred.

CRA REVOKES CHARITABLE STATUS OF BANYAN TREE

• The Banyan Tree Foundation set up a scheme where many donors were given donation tax credits for more than they actually donated. There is some question as to whether donors may be forced to pay back the tax refunds resulting from these donations. Be very wary of ANY scheme which purports to give you a tax credit for an amount larger than the amount you actually donated.

REDUCE YOUR 2008 INCOME TAXES

Send us an e-mail to info@teed-cga.com and we will be pleased to send you a copy of this brochure by return e-mail.

STRATA CORPORATIONS

• At present we are the external accountants approximately 20 commercial and industrial strata corporations in the lower mainland. This is an area of our practice that we are looking to expand and would be pleased to discuss the services we can provide to you – phone or e-mail Brian Teed, CGA or Ida de-Heer-Amissah, FCCA, CGA.