Announcements

 

Get caught up with Andrews & Co.

Whether it's tax season or welcoming new team members, we have a lot going on at our firm. We'll keep you connected by sharing our ongoing news.

  • Nexia Canada Managers Seminar 2019
    Posted

    Last week Adam Patrick and Anik Audet travelled to Toronto to participate in the Nexia Canada Managers Training Seminar. Throughout their jam packed two days Adam and Anik did many team bonding activities such as axe throwing and a Toronto Blue Jays game while also attending several Manager Seminars. Thank you Zeifmans and Nexia Canada for hosting a wonderful two days!

    Last week Adam Patrick and Anik Audet travelled to Toronto to participate in the Nexia Canada Managers Training Seminar. Throughout their jam packed two days Adam and Anik did many team bonding activities such as axe throwing and a Toronto Blue Jays game while also attending several Manager Seminars. Thank you Zeifmans and Nexia Canada for hosting a wonderful two days!

    Read More
  • Golf Day 2019
    Posted

    This past Friday marked Andrews & Co.’s Annual Foreman Memorial Golf Tournament held at The Meadows Golf and Country Club. Staff enjoyed a round of 18 holes, dinner and many activities such as Longest Drive, Closest to The Pin and 50/50 draws to raise funds for the Candlelighters Childhood Cancer Support Programs. Overall, as a firm, Andrews is proud to donate $1700 (surpassing our goal of $1300) to help fund Candlelighters research this year! Thank you to everyone who supported, and donated us this year.

    This past Friday marked Andrews & Co.’s Annual Foreman Memorial Golf Tournament held at The Meadows Golf and Country Club. Staff enjoyed a round of 18 holes, dinner and many activities such as Longest Drive, Closest to The Pin and 50/50 draws to raise funds for the Candlelighters Childhood Cancer Support Programs. Overall, as a firm, Andrews is proud to donate $1700 (surpassing our goal of $1300) to help fund Candlelighters research this year! Thank you to everyone who supported, and donated us this year.

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  • ACCELERATED DEPRECIATION: Federal Fall Economic Update Changes
    Posted

    In response to U.S. tax changes and cuts, the Federal Government released its Fall Economic Update on November 21, 2018 which primarily focused on changes to the first year of depreciation on most capital assets. The changes include immediate full depreciation in respect of manufacturing & processing assets, along with clean energy generation and storage assets. Also, an enhanced first year depreciation claim is now available for most other depreciable assets.

    Manufacturing and Processing Machinery and Equipment

    Machinery and equipment used in manufacturing and processing acquired and made available for use from November 21, 2018 to December 31, 2023 will be eligible for a full capital cost allowance (CCA) deduction in the year of acquisition (the full deduction will then be phased out incrementally). Specifically, the asset must be used directly or indirectly by the taxpayer in Canada primarily for the manufacturing or processing of goods for sale or lease, or leased by certain corporations to a lessee who can reasonably be expected to use the property in this manner.

    In broad terms, the manufacture of goods normally involves the creation of something (e.g. making or assembling machines, clothing or soup) or the shaping, stamping or forming of an object of something (e.g. making steel rails, wire nails, rubber balls, or wood moulding).

    Processing of goods usually refers to a uniform process, system, technique, or method of preparation, handling or other activity designed to effect a physical or chemical change in an article or substance (e.g. galvanizing iron, creosoting fence posts, dyeing cloth, dehydrating foods, or homogenizing and pasteurizing dairy products), other than natural growth. Jurisprudence has determined that a taxpayer would be engaged in processing if the following two tests are met: there is a change in the form, appearance, or other characteristics of the goods subject to the operation; and the product becomes more marketable.

    Property “used directly or indirectly” in eligible activities may qualify for this enhanced deduction.

    Some assets commonly used in smaller operations, such as restaurants, bars or bakeries, may qualify. For example, an oven which converts ingredients into a meal for sale may be considered used in manufacturing or processing.

    Clean Energy Assets

    Clean energy assets (Classes 43.1 and 43.2) will qualify for the same first year depreciation claims as manufacturing and processing equipment (100% up to December 31, 2023, declining thereafter). Eligible assets for these classes include certain types of energy and heat production and storage equipment related to hydro, wind, solar, bio fuel, eligible waste fuels, hydrogen fuel cells, kinetic wave/tidal, ground source heat pump systems and heat recovery equipment.

    Most Other Capital Assets – Accelerated Investment Incentive

    CCA also will be enhanced for acquisitions of depreciable assets in most other classes from November 21, 2018 to December 31, 2027.

    Prior to the rule change, the half-year rule essentially only allowed half a year of depreciation in the year of acquisition (applicable to most CCA classes), regardless of how early or late in the fiscal year the asset was acquired. Now, for most assets, the usual half year of CCA available in the year of acquisition will be tripled for acquisitions to December 31, 2023 (the enhancement will decline thereafter, returning to the typical half-year rule in 2028).

    For example, a Class 10 vehicle which is normally subject to a 15% depreciation claim in the first year would now be allowed a 45% claim.

    Planning and Purchases

    Claiming depreciation is optional. In essence, one has the option of claiming depreciation up to the maximum level available in respect of its class for any given year (other less common limits may also apply). The accelerated depreciation rules operate as the name implies: they accelerate when a tax deduction for depreciation can be claimed, but they do not increase the overall lifetime amounts that can be claimed. In other words, more can be claimed up front, but less will be available in the future. Note that an accelerated CCA claim in the year of acquisition is only available in that year – one must “use it or lose it”. Reducing the claim in the year of acquisition does not allow an accelerated deduction in a future year.

    When determining whether, and to what extent a claim should be made, considerations vary depending on factors such as:

    • whether the asset is owned personally or in a corporation;
    • the current income levels, and the expected income in the future;
    • future corporate tax rates (for example, whether the corporation may be subject to small business deduction restrictions as too much passive income is being earned); and
    • whether the asset is generating passive or active income.

    Accelerated depreciation is available even if purchased just before year’s end, as long as it is also made available for use by that point as well.

     

    ACTION ITEM: Review whether capital purchases should be accelerated, and whether the accelerated deduction should be claimed given your particular situation.

    In response to U.S. tax changes and cuts, the Federal Government released its Fall Economic Update on November 21, 2018 which primarily focused on changes to the first year of depreciation on most capital assets. The changes include immediate full depreciation in respect of manufacturing & processing assets, along with clean energy generation and storage assets. Also, an enhanced first year depreciation claim is now available for most other depreciable assets.

    Manufacturing and Processing Machinery and Equipment

    Machinery and equipment used in manufacturing and processing acquired and made available for use from November 21, 2018 to December 31, 2023 will be eligible for a full capital cost allowance (CCA) deduction in the year of acquisition (the full deduction will then be phased out incrementally). Specifically, the asset must be used directly or indirectly by the taxpayer in Canada primarily for the manufacturing or processing of goods for sale or lease, or leased by certain corporations to a lessee who can reasonably be expected to use the property in this manner.

    In broad terms, the manufacture of goods normally involves the creation of something (e.g. making or assembling machines, clothing or soup) or the shaping, stamping or forming of an object of something (e.g. making steel rails, wire nails, rubber balls, or wood moulding).

    Processing of goods usually refers to a uniform process, system, technique, or method of preparation, handling or other activity designed to effect a physical or chemical change in an article or substance (e.g. galvanizing iron, creosoting fence posts, dyeing cloth, dehydrating foods, or homogenizing and pasteurizing dairy products), other than natural growth. Jurisprudence has determined that a taxpayer would be engaged in processing if the following two tests are met: there is a change in the form, appearance, or other characteristics of the goods subject to the operation; and the product becomes more marketable.

    Property “used directly or indirectly” in eligible activities may qualify for this enhanced deduction.

    Some assets commonly used in smaller operations, such as restaurants, bars or bakeries, may qualify. For example, an oven which converts ingredients into a meal for sale may be considered used in manufacturing or processing.

    Clean Energy Assets

    Clean energy assets (Classes 43.1 and 43.2) will qualify for the same first year depreciation claims as manufacturing and processing equipment (100% up to December 31, 2023, declining thereafter). Eligible assets for these classes include certain types of energy and heat production and storage equipment related to hydro, wind, solar, bio fuel, eligible waste fuels, hydrogen fuel cells, kinetic wave/tidal, ground source heat pump systems and heat recovery equipment.

    Most Other Capital Assets – Accelerated Investment Incentive

    CCA also will be enhanced for acquisitions of depreciable assets in most other classes from November 21, 2018 to December 31, 2027.

    Prior to the rule change, the half-year rule essentially only allowed half a year of depreciation in the year of acquisition (applicable to most CCA classes), regardless of how early or late in the fiscal year the asset was acquired. Now, for most assets, the usual half year of CCA available in the year of acquisition will be tripled for acquisitions to December 31, 2023 (the enhancement will decline thereafter, returning to the typical half-year rule in 2028).

    For example, a Class 10 vehicle which is normally subject to a 15% depreciation claim in the first year would now be allowed a 45% claim.

    Planning and Purchases

    Claiming depreciation is optional. In essence, one has the option of claiming depreciation up to the maximum level available in respect of its class for any given year (other less common limits may also apply). The accelerated depreciation rules operate as the name implies: they accelerate when a tax deduction for depreciation can be claimed, but they do not increase the overall lifetime amounts that can be claimed. In other words, more can be claimed up front, but less will be available in the future. Note that an accelerated CCA claim in the year of acquisition is only available in that year – one must “use it or lose it”. Reducing the claim in the year of acquisition does not allow an accelerated deduction in a future year.

    When determining whether, and to what extent a claim should be made, considerations vary depending on factors such as:

    • whether the asset is owned personally or in a corporation;
    • the current income levels, and the expected income in the future;
    • future corporate tax rates (for example, whether the corporation may be subject to small business deduction restrictions as too much passive income is being earned); and
    • whether the asset is generating passive or active income.

    Accelerated depreciation is available even if purchased just before year’s end, as long as it is also made available for use by that point as well.

     

    ACTION ITEM: Review whether capital purchases should be accelerated, and whether the accelerated deduction should be claimed given your particular situation.

    Read More
  • Nexia Day 2019
    Posted

    “Nexia Day is a great way for everyone to get involved and celebrate the strengths of our network, wherever they are” Kevin Arnold, CEO of Nexia International.

    On Thursday, staff of Andrews & Co. participated in a “Hot Ones” Wing Challenge. Staff had the chance to try 9 different flavours of wings, ranging from honey garlic to the hottest of them all, da bomb!

    During this challenge, Andrews & Co. staff raised a total of $525.00 for the Orleans-Cumberland Community Resource Centre Food Bank.

    Thank you to everyone who participated. For more information on Nexia Day please visit their website: https://nexia.com/nexia-day/

    “Nexia Day is a great way for everyone to get involved and celebrate the strengths of our network, wherever they are” Kevin Arnold, CEO of Nexia International.

    On Thursday, staff of Andrews & Co. participated in a “Hot Ones” Wing Challenge. Staff had the chance to try 9 different flavours of wings, ranging from honey garlic to the hottest of them all, da bomb!

    During this challenge, Andrews & Co. staff raised a total of $525.00 for the Orleans-Cumberland Community Resource Centre Food Bank.

    Thank you to everyone who participated. For more information on Nexia Day please visit their website: https://nexia.com/nexia-day/

    Read More
  • Travel Expenses: Home to Work Site
    Posted

    Travel from home to a regular place of employment is usually a personal expenditure, the costs of which cannot be claimed as an employment expense. However, if the taxpayer is required to travel away from the employer’s place of business, amounts may be deductible by the employee.

    A June 29, 2018 Tax Court of Canada case examined this issue. The taxpayer travelled from home to three different construction sites to carry on employment duties. Specifically, the taxpayer’s work for a Toronto construction corporation required frequent travel to sites requiring round trips of 167 km (Hamilton) and 92 km (Aurora), and infrequently to a site requiring a 94 km round trip (Whitby).

    CRA argued that each was a regular place of employment, such that no deduction was available. The Court, however, concluded that this was travel “away from the employer’s place of business or in different places”, as required by the Income Tax Act. As such, the costs of this travel could qualify as deductible employment expenses.

    While the taxpayer was not ultimately successful in his claim due to his receipt of an allowance from his employer, the case may provide a basis for business travel from home to a construction site.

    As implied above, there are other conditions that must be met in order to deduct amounts against employment income. For example, the employee must not receive a non-taxable allowance in respect of the travel, and an appropriately completed T2200 from their employer must have been issued.

     

    CAUTION ITEM: Although it may be possible deduct travel amounts against employment income, such amounts are often challenged by CRA.

    Travel from home to a regular place of employment is usually a personal expenditure, the costs of which cannot be claimed as an employment expense. However, if the taxpayer is required to travel away from the employer’s place of business, amounts may be deductible by the employee.

    A June 29, 2018 Tax Court of Canada case examined this issue. The taxpayer travelled from home to three different construction sites to carry on employment duties. Specifically, the taxpayer’s work for a Toronto construction corporation required frequent travel to sites requiring round trips of 167 km (Hamilton) and 92 km (Aurora), and infrequently to a site requiring a 94 km round trip (Whitby).

    CRA argued that each was a regular place of employment, such that no deduction was available. The Court, however, concluded that this was travel “away from the employer’s place of business or in different places”, as required by the Income Tax Act. As such, the costs of this travel could qualify as deductible employment expenses.

    While the taxpayer was not ultimately successful in his claim due to his receipt of an allowance from his employer, the case may provide a basis for business travel from home to a construction site.

    As implied above, there are other conditions that must be met in order to deduct amounts against employment income. For example, the employee must not receive a non-taxable allowance in respect of the travel, and an appropriately completed T2200 from their employer must have been issued.

     

    CAUTION ITEM: Although it may be possible deduct travel amounts against employment income, such amounts are often challenged by CRA.

    Read More
  • ALS WALK 2019
    Posted

    This past weekend Tracey Stratton along with other members of staff completed the Walk to End ALS in Ottawa. The total raised this year was $4,160! (fundraising, bake sale).

    Every year the office participates in the walk in memory of our former partner Andy Foreman.  Andy passed away in 2013 and since that time we have raised in excess of $20,000 for this worthwhile and close to home cause.

    Thank you to everyone who contributed to our efforts this year.

    This past weekend Tracey Stratton along with other members of staff completed the Walk to End ALS in Ottawa. The total raised this year was $4,160! (fundraising, bake sale).

    Every year the office participates in the walk in memory of our former partner Andy Foreman.  Andy passed away in 2013 and since that time we have raised in excess of $20,000 for this worthwhile and close to home cause.

    Thank you to everyone who contributed to our efforts this year.

    Read More
  • SOFTBALL LEAGUE 2019
    Posted

    Andrews & Co. is hittin the field this upcoming summer! Staff have recently joined a Softball League through Ottawa Sport & Social Club. Everyone is looking forward to working and playing together as a team on Tuesday nights.

    Andrews & Co. is hittin the field this upcoming summer! Staff have recently joined a Softball League through Ottawa Sport & Social Club. Everyone is looking forward to working and playing together as a team on Tuesday nights.

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  • Summer Office Hours 2019
    Posted

    Please note our office hours have changed for the summer

    Monday – Thursday 8:30am – 5:00pm

    Friday 8:30am – 1:00pm

    Please note our office hours have changed for the summer

    Monday – Thursday 8:30am – 5:00pm

    Friday 8:30am – 1:00pm

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  • 2019 ALS WALK
    Posted

    As many of you know our partner Andy Foreman passed away in March 2013 from ALS. ALS is a terminal disease that takes away people’s ability to walk, talk and eventually breath on their own.

    Staff member Tracey Stratton has once again registered to take part in the annual “Walk to End ALS’  which this year takes place on June 8.   Walking with Tracey will be other staff members, Andy’s wife and other members of his family. Through fundraising events including a bake sale and the walk a goal of $4,100 has been set to try and beat last years total raised of $4,075.

    If you would like to make a donation to this worthwhile cause the details can be found in this link: Personal Fundraising Page: https://secure.alsevents.ca/registrant/FundraisingPage.aspx?registrationID=4429439&langPref=en-CA

    As many of you know our partner Andy Foreman passed away in March 2013 from ALS. ALS is a terminal disease that takes away people’s ability to walk, talk and eventually breath on their own.

    Staff member Tracey Stratton has once again registered to take part in the annual “Walk to End ALS’  which this year takes place on June 8.   Walking with Tracey will be other staff members, Andy’s wife and other members of his family. Through fundraising events including a bake sale and the walk a goal of $4,100 has been set to try and beat last years total raised of $4,075.

    If you would like to make a donation to this worthwhile cause the details can be found in this link: Personal Fundraising Page: https://secure.alsevents.ca/registrant/FundraisingPage.aspx?registrationID=4429439&langPref=en-CA

    Read More
  • 2019 After Tax Party
    Posted

    And that’s a wrap! Andrews & Co. celebrated another successful tax season last Friday, with a fully catered party for all our hard working staff. This year we had Meatings Barbecue put on an incredible spread and Stray Dog Brewing Company who supplied a fantastic specialty beer!

    And that’s a wrap! Andrews & Co. celebrated another successful tax season last Friday, with a fully catered party for all our hard working staff. This year we had Meatings Barbecue put on an incredible spread and Stray Dog Brewing Company who supplied a fantastic specialty beer!

    Read More