- Maternity Leave – up to 15 weeks
- Parental Leave – up to 35 weeks
- Sickness Leave – up to 15 weeks
- Compassionate Care – up to 6 weeks
- Registered Charity Information Return, Form T3010A
- Registered Charity Basic Information Sheet, Form TF725
- List of directors/trustees or like officials, Form T1235
- List of qualified donees, Form T2136
- Copy of the registered charity’s own financial statements
- To ensure that most of the registered charity’s funds are used to further its charitable purposes and activities;
- To encourage registered charities not to accumulate excessive funds; and
- To keep other expenses at a reasonable level.
- It received or was entitled to receive taxable dividends, interest, rentals or royalties totalling more than $10,000 in the fiscal period,
- The total assets of the organization were more than $200,000 at the end of the immediately preceding fiscal period (the amount of the organization’s total assets is the book value of these assets calculated using generally accepted accounting principles); or
- An NPO information return had to be filed for a previous fiscal period
A Registered Retirement Savings Plan (“RRSP”) is a tax-deferred retirement savings plan that is registered with the federal government. The concept behind it is that you contribute an amount to an RRSP and, in return, you receive a tax deduction for the amount of your contribution. Contributions to the plan can be invested in a variety of underlying investments such as stocks, bonds, savings deposits, or mutual funds to name a few. Investment income earned within the plan on the invested assets is not taxed. Once you withdraw funds from the plan, you must include the amount of withdrawal as income on your personal tax return.
Benefits of Contributing to an RRSP
Contributing to an RRSP is a step toward retirement planning and maintaining your standard of living upon retirement. The contributions made to an RRSP will result in a tax deduction resulting in a tax deferral. Then at retirement, when your income is reduced and in a lower tax bracket, you will withdraw funds from your RRSP which will then be included as income on your personal tax return.
A person can also contribute to a spousal RRSP. This is a plan that is registered to the spouse of the contributor. The contributor makes the contribution to the spousal RRSP and obtains the corresponding tax deduction but the spouse will withdraw the funds at a later date and include the withdrawal on their personal tax return as income.
Contributions – When to Start and How Much?
I recommend that you start as early as possible. Although the peak years of income earning are between the age of 30 and 60, the earlier you begin contributing, the more benefit you will receive from the compounding of investment income.
The annual contribution limit is equal to 18% of the previous year’s income up to $22,000 in 2010. In addition, any unused contribution room carry-forward and may be used at any time. The maximum that you can contribute can be found on your Notice of Assessment. You are allowed an over-contribution of $2,000 but any amount exceeding this limit will result in a penalty of 1% per month of the over-contributed balance.
Contributions may be made anytime during the tax year and 60 days into the following year to apply to the current year’s income. Therefore, you can contribute to an RRSP until March 1, 2011 and receive the tax deduction on your 2010 personal tax return.
When Can I Withdraw My RRSP?
An RRSP is designed as and more effective as a long term investment. However, should a person need part or all of their RRSP savings before retirement, you can withdraw an amount at anytime. The amount of your withdrawal must be reported as income on your personal tax return in the year of withdrawal.
You can also withdraw funds from your RRSP for the Home Buyers Plan (HBP). This allows an individual who is a first time home buyer to withdraw up to $25,000 from their RRSP to build or buy a home. The benefit with the Home Buyers Plan is that the withdrawal is not included in income for taxation purposes. You have to repay all withdrawals to your RRSP for the purposes of the HBP within a period of no more than 15 years. If you do not pay an amount that is due within a given year, that amount will be included in your income.
As you can see, an RRSP is a win-win situation. To receive the most advantages from one, it is best to start contributing as early as possible. If you have any questions regarding an RRSP, please call 905-216-2445, click email@example.com or visithttp://www.vnaccountingsolutions.com/
You don’t own it.
You have no control.
Is underwritten at claim time.
Can be cancelled by the bank and/or the group underwriter.
Is non-transferable to another bank or mortgage.
Can only be cancelled by you – in writing or if you stop paying for it.
The policy is transferable.
The policy can be convertible to whole life insurance (depending on the policy you choose).
The policy is underwritten at the beginning – if you are approved, then you are covered.
You can get benefits like: disability waiver of premiums, critical illness rider etc.
Use capital losses to offset capital gains
Make your charitable donations
Contribute to an RESP
Take advantage of the Children’s Fitness Tax Credit
Review your 2009 notice of assessment
Other claims to consider
You can find more information on what you can and can’t claim on my blog Save $$$$: Tax write offs for small business .
Advice for families: Divide, deduct and defer
Why getting a refund can be a bad strategy
Do you have late or past due tax returns that you need to file? Don’t wait any longer, and contact your accountant, as there are many advantages to catching up with the taxman.
This article addresses the top 5 reasons to file your past-due or late tax returns:
1. Get refund
In many cases, you may be eligible for a tax refund, which you can only receive by filing your tax return. A tax refund may result because of RRSP contributions made, child care expenses incurred, large amounts of taxes withheld from your paycheque, and many other reasons
So make sure you file your late, past due tax returns to collect your tax refund cheque.
2. UCCB & CCTB
The Universal Child Care Benefit ($100 per month per child) and the Canada Child Tax Benefit are only paid to those individuals have filed their tax returns. Therefore, if you have children and haven’t received any UCCB or CCTB payments thus far, make sure you file your overdue tax returns. Likewise, CCTB payments may stop being paid to you if you have past due tax returns.
3. Reduce interest and penalties
If you owe money to the Canada Revenue Agency, procrastination won’t help to reduce the amount you owe. In fact, interest will accrue at an annual rate of 5% and penalties can amount to 17% or more.
Therefore, if you owe money, please make sure that you file your past due tax returns to minimize any interest or penalties.
4. Applying for a mortgage or loan
When applying for a mortgage or loan, the bank will want to see your latest Notice of Assessment to verify your income. If you don’t have that available, because of overdue tax returns, you may be out of luck for your next home purchase or loan.
5. Demand notice from the CRA for late, past due tax returns
The CRA will send a demand notice to file your returns, followed by an “Arbitrary Assessment”, if the returns aren’t filed. An arbitrary assessment means that the CRA will assess your return based on the information they have received, and will not provide for any deductions that you may be entitled to. In other words, an arbitrary assessment is the worst-case-scenario and results in an overstated tax balance.
Additionally, the Canada Revenue Agency has the power to garnish your wages for overdue tax balances, seize your bank accounts and even seize your property.
To make sure you don’t end up in a situation where the CRA is confiscating your property, it’s advisable to file your late, past due tax returns and seek the advice.
Need more info; Call 905-216-2445, click firstname.lastname@example.org or visit vnaccountingsolutions.com
What do accountants bring to the table for charitable donations? I would like to make the case for a special kind of support, something that will help EVERY charity and something that comes naturally with accounting training and experience.
The difficult fact that each charity faces is that nobody wants to support administrative costs. Governments don’t fund this area, nor do foundations or private individuals as a rule. Yet every charity spends a significant amount of time and money on administration: paying the rent, keying in the payroll, buying insurance, etc.
As accountants, we are arguably experts on administration. We track it. We analyze it. We minimize it. We research it. And we appreciate it when it’s done well.
So many not-for-profit organizations I’ve worked with actually underspend on administration. They use obsolete computers and inadequate software, forcing them to spend too much staff and volunteer time on admin. Often staff are not sufficiently trained in standard packages like word processors and spreadsheets, so too much time gets spent on the otherwise normal processing of transactions and reports. Others are lucky enough to have an endowment cover at least part of the administrative costs, but they are a small minority.
Sometimes this skimping on administration leads to self-defeating results. It takes resources to write grant proposals, report to donors, mount events or create fundraising campaigns. As any salesperson will tell you, you have to spend money to make money.
Administration is not exciting. Most people would rather see their money go towards a scholarship, a key piece of equipment or research into curing a disease, but with our specialized training and experience, accountants are different. We know how important effective administration is, how the very success of the charity may depend on it.
So, please consider marking your next donation to your favorite charity, “For ongoing administration”. Your donation will get the attention it deserves!