Lohn Caulder LLP

As readers will be well aware, the HST is being scrapped, and we are bringing back the provincial sales tax on April Fool’s Day, 2013. We thought it might be entertaining, and hopefully even useful, to review the history of this whole escapade, and its players . . .

First, Some Sales Tax History: BC’s former provincial sales tax had its origins in the 19th century. In those days, BC’s economy was far more dependent on the production of tangible goods. In those days, it was far easier to administer a tax that was based on tangible things, such as barrels of whiskey or piles of lumber, because they could be seen, and counted.

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We’ve been busy modernizing some of our procedures over the summer and fall. One of our changes that’s getting very positive feedback is Internet banking. That means you can now pay our account via your bank’s, or other financial institution’s, bill payment website.

It costs you, and us, nothing to use this method of payment, and you get a very effective record of the transaction when using it. So do we.

We’re already well along the way towards a ‘cashless’ society, and cheque writing is rapidly going out of fashion, too.

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The CPP is changing, beginning in 2012. These changes include the following, taken from the Service Canada website:

• Your monthly CPP retirement pension amount will increase by a larger percentage if you take it after age 65.
• Your monthly CPP retirement pension amount will decrease by a larger percentage if you take it before age 65.
• If you are under 65 and you work while receiving your CPP retirement pension, you and your employer will have to make CPP contributions. These contributions will increase your CPP retirement benefits.
• If you are age 65 to 70 and you work while receiving your CPP retirement pension, you can choose to make CPP contributions. These contributions will increase your CPP retirement benefits. You can opt out of making CPP contributions by filing form CPT30.
• The number of years of low or zero earnings that are automatically dropped from the calculation of your CPP pension will increase.
• You will be able to begin receiving your CPP retirement pension without any work interruption.

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Are you a U.S. Citizen or a U.S. ‘Green Card’ Holder?

As you may already be aware there have been a number of articles in the mainstream media recently concerning tax filing obligations of U.S. citizens or residents living abroad.

All U.S. citizens and green cardholders are required to file an annual U.S. individual income tax return (form 1040).

If that is you, please read on:

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Elimination of Tax Deferral – Partnerships and Joint Ventures

As a result of the 2011 Federal Budget the government has proposed to eliminate the tax deferral for corporations that have a significant interest in a partnership. Also on November 29, 2011, the CRA announced that joint ventures will no longer have a fiscal period. Therefore we will now have to report the income from joint ventures and partnerships up to the year end of the company.

For more information, see http://www.cra-arc.gc.ca/tx/bsnss/tpcs/crprtns/dfrrl/menu-eng.html.