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.

  • Popcorn Day!
    Posted

    It was a poppin day over here at Andrews with our first ever Popcorn Day! Thank you Kernels for supplying us with many different flavorful kinds.

    It was a poppin day over here at Andrews with our first ever Popcorn Day! Thank you Kernels for supplying us with many different flavorful kinds.

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  • BUSINESS AFTER FIVE
    Posted

    Timothy Malleau and Greg Mouland represented Andrews & Co. at Business After 5 in early February. The event took place down the street from us at Stray Dog Brewing Company where they discussed “freedom to do what feels right, the defiance of a life confinement, and taking risks to do something great”.

    Thank you to the Ottawa Board of Trade for putting on a wonderful event and thank you to Stray Dog for hosting.

     

    Timothy Malleau and Greg Mouland represented Andrews & Co. at Business After 5 in early February. The event took place down the street from us at Stray Dog Brewing Company where they discussed “freedom to do what feels right, the defiance of a life confinement, and taking risks to do something great”.

    Thank you to the Ottawa Board of Trade for putting on a wonderful event and thank you to Stray Dog for hosting.

     

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  • Important Filing Dates 2019
    Posted

    Take a look at our 2019 important filing dates to ensure you stay on track for the rest of the year!

    • Visit our resources tab to download your own copy

    Take a look at our 2019 important filing dates to ensure you stay on track for the rest of the year!

    • Visit our resources tab to download your own copy
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  • Newest Member of our Management Team
    Posted

    Andrews and Co is pleased to congratulate Adam Patrick on becoming a part of the management team.

    Adam has been with the firm for over 4 years and his leadership and commitment to our staff and clients have made him an integral part of our future.

    Congratulations Adam!

    Andrews and Co is pleased to congratulate Adam Patrick on becoming a part of the management team.

    Adam has been with the firm for over 4 years and his leadership and commitment to our staff and clients have made him an integral part of our future.

    Congratulations Adam!

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  • CHILDCARE COSTS: Art, Sport and Educational Camps
    Posted

    A September 11, 2018 Tax Court of Canada case examined the eligibility of a number of child care costs with a recreational and educational component. The taxpayer and his spouse worked full time and had two children, aged 10 and 12.

    The Court acknowledged two separate lines of cases related to eligibility of child care expenses (all informal and, therefore, not binding on CRA).

    The first set, argues that the definition of a “child care expense” is restrictive such that recreational or educational activities do not qualify. The reasoning is that expenses to develop the physical, social and artistic abilities of the child would have been incurred whether or not the parents had been working.

    The second line of cases requires that one evaluate whether the purpose of the expense was to allow the parent(s) to work. A bona fide expense would not be denied solely because the activity was recreational or educational in nature.

    Taxpayer Wins, Mostly

    The Court accepted the second set of cases as guidance, noting that if Parliament had intended to limit such activities, it would have said so in more specific and restrictive language. As such, the Court accepted the majority of the taxpayer’s child care expenses that contained a recreational and educational component.

    Parental Discretion

    The Court found that the taxpayer’s decision to engage university students, who were paid $5/hour more than what was paid to high school students, was irrelevant as “it is not for the state to decide who minds the appellant’s children as long as the expenses are reasonable.” In other words, it is the parents that are responsible for choosing who they wish to use, and they do so, based on the child’s needs; this choice is an exercise of parental discretion.

    The Minister also suggested that the child who was 12 years of age in the year may not have needed some of these expenditures due to his age, to which the Court responded that Parliament grants child care expenses for eligible children up to age 16 – it is up to the parent to decide whether a child 12 or older should stay home alone.

     Limitations

    Costs related to activities on a Saturday, and during school hours, were denied as they did not facilitate the taxpayers’ ability to work. Amounts related to camp were limited to a weekly amount of $125 (as the child was over 7), as specifically provided for in the Income Tax Act. Camp costs for children under 7 are limited to a weekly amount of $200. A higher amount may be available for those with a disability.

    CRA Administrative Policy

    As this case was informal, it is not precedential. While it may provide a filing position, CRA may still challenge these types of child care expenses. CRA’s webpage continues to state that fees for leisure or recreational activities, and fees related to education costs, cannot be claimed as a child care expense.

     

    ACTION ITEM: If incurring child care costs with a recreational or educational component, consideration may be given to claiming these amounts as a child care expense, up to the maximum allowed amount. That is, an annual amount of $8,000/child under 7, $5,000/child aged 7 to 16 and $11,000 for a disabled child.

    A September 11, 2018 Tax Court of Canada case examined the eligibility of a number of child care costs with a recreational and educational component. The taxpayer and his spouse worked full time and had two children, aged 10 and 12.

    The Court acknowledged two separate lines of cases related to eligibility of child care expenses (all informal and, therefore, not binding on CRA).

    The first set, argues that the definition of a “child care expense” is restrictive such that recreational or educational activities do not qualify. The reasoning is that expenses to develop the physical, social and artistic abilities of the child would have been incurred whether or not the parents had been working.

    The second line of cases requires that one evaluate whether the purpose of the expense was to allow the parent(s) to work. A bona fide expense would not be denied solely because the activity was recreational or educational in nature.

    Taxpayer Wins, Mostly

    The Court accepted the second set of cases as guidance, noting that if Parliament had intended to limit such activities, it would have said so in more specific and restrictive language. As such, the Court accepted the majority of the taxpayer’s child care expenses that contained a recreational and educational component.

    Parental Discretion

    The Court found that the taxpayer’s decision to engage university students, who were paid $5/hour more than what was paid to high school students, was irrelevant as “it is not for the state to decide who minds the appellant’s children as long as the expenses are reasonable.” In other words, it is the parents that are responsible for choosing who they wish to use, and they do so, based on the child’s needs; this choice is an exercise of parental discretion.

    The Minister also suggested that the child who was 12 years of age in the year may not have needed some of these expenditures due to his age, to which the Court responded that Parliament grants child care expenses for eligible children up to age 16 – it is up to the parent to decide whether a child 12 or older should stay home alone.

     Limitations

    Costs related to activities on a Saturday, and during school hours, were denied as they did not facilitate the taxpayers’ ability to work. Amounts related to camp were limited to a weekly amount of $125 (as the child was over 7), as specifically provided for in the Income Tax Act. Camp costs for children under 7 are limited to a weekly amount of $200. A higher amount may be available for those with a disability.

    CRA Administrative Policy

    As this case was informal, it is not precedential. While it may provide a filing position, CRA may still challenge these types of child care expenses. CRA’s webpage continues to state that fees for leisure or recreational activities, and fees related to education costs, cannot be claimed as a child care expense.

     

    ACTION ITEM: If incurring child care costs with a recreational or educational component, consideration may be given to claiming these amounts as a child care expense, up to the maximum allowed amount. That is, an annual amount of $8,000/child under 7, $5,000/child aged 7 to 16 and $11,000 for a disabled child.

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  • TAX.. some quick points to consider
    Posted
    • The annual TFSA contribution limit for 2019 will be increased to $6,000 (from $5,500) due to indexation. For those who have been eligible to build contribution room since inception of the program in 2009 and have never contributed, the total maximum room as of January 1, 2019 is $63,500.
    • For 2019, the Employment Insurance premium rate is reduced to 1.62% (from 1.66%). The maximum insurable earnings is $53,100 (from $51,700), resulting in a maximum employee premium of $860 (a net increase of $2) and maximum employer premium of $1,204 (a net increase of $3).
    • Registered charities will now be able to pursue their charitable purpose by engaging in non-partisan political activities in the development of public policy without limitation. These rule charges are largely retroactive to January 1, 2008. Previously, a registered charity must have limited their non-partisan political activities to 10% of their resources.
    • CRA recently opined that investment management fees in respect of tax-sheltered accounts (like RRSPs, RRIFs and TFSAs) paid outside of the account (e.g. management fees charged to a non-registered account), would be subject to a 100% advantage tax. That is, a tax equal to the full value of the management fee would be levied. It was recently announced that the implementation date of this policy was extended indefinitely until a review had been completed.

    This publication is produced by Andrews & Co. as an information service to clients and friends of the firm, and is not intended to substitute for competent professional advice. No action should be initiated without consulting your professional advisors.

    • The annual TFSA contribution limit for 2019 will be increased to $6,000 (from $5,500) due to indexation. For those who have been eligible to build contribution room since inception of the program in 2009 and have never contributed, the total maximum room as of January 1, 2019 is $63,500.
    • For 2019, the Employment Insurance premium rate is reduced to 1.62% (from 1.66%). The maximum insurable earnings is $53,100 (from $51,700), resulting in a maximum employee premium of $860 (a net increase of $2) and maximum employer premium of $1,204 (a net increase of $3).
    • Registered charities will now be able to pursue their charitable purpose by engaging in non-partisan political activities in the development of public policy without limitation. These rule charges are largely retroactive to January 1, 2008. Previously, a registered charity must have limited their non-partisan political activities to 10% of their resources.
    • CRA recently opined that investment management fees in respect of tax-sheltered accounts (like RRSPs, RRIFs and TFSAs) paid outside of the account (e.g. management fees charged to a non-registered account), would be subject to a 100% advantage tax. That is, a tax equal to the full value of the management fee would be levied. It was recently announced that the implementation date of this policy was extended indefinitely until a review had been completed.

    This publication is produced by Andrews & Co. as an information service to clients and friends of the firm, and is not intended to substitute for competent professional advice. No action should be initiated without consulting your professional advisors.

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  • Happy Holidays
    Posted

    On behalf of the Andrews team we wish you a wonderful holiday season and a happy new year!

    On behalf of the Andrews team we wish you a wonderful holiday season and a happy new year!

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  • CHRISTMAS ANGEL TREE PROGRAM UPDATE
    Posted

    A big thank you to everyone who contributed to this years Angel Tree Program. We collected lots of gifts for the Orleans-Cumberland Community Resource Centre Christmas Program. The Holidays are right around the corner!

    A big thank you to everyone who contributed to this years Angel Tree Program. We collected lots of gifts for the Orleans-Cumberland Community Resource Centre Christmas Program. The Holidays are right around the corner!

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  • Movember 2018
    Posted

    Andrews & Co. would like to thank all those who participated and donated to our Movember 2018 campaign. Our goal was $1500 and we surpassed it with $2565 raised! What a huge success! We would like to thank the Mo-bros of Andrews & Co. Adam, Brendan, Paul, Evan, Garrett, Simon, Jerome, Lance, Denis, Ryan, Sheridan and Phil for all their hard work and dedication.

     

    Andrews & Co. would like to thank all those who participated and donated to our Movember 2018 campaign. Our goal was $1500 and we surpassed it with $2565 raised! What a huge success! We would like to thank the Mo-bros of Andrews & Co. Adam, Brendan, Paul, Evan, Garrett, Simon, Jerome, Lance, Denis, Ryan, Sheridan and Phil for all their hard work and dedication.

     

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  • CHRISTMAS ANGEL TREE PROGRAM
    Posted

    It is that time of year again! Andrews & Co. is proud to support The Christmas Angel Tree Program this December brought to you by The Orleans-Cumberland Community Resource Centre. We have invited staff and the community to choose an angel from our tree in the lobby and deliver an unwrapped gift to Andrews & Co by December 6th at 9am. The angel will tell you the age and gender of the child and some ideas of what they have told Santa they would like.  The Orleans-Cumberland Community Resource Centre will then come and collect all the gifts in time for their Christmas Program!

    Thank you everyone for your support!

     

    It is that time of year again! Andrews & Co. is proud to support The Christmas Angel Tree Program this December brought to you by The Orleans-Cumberland Community Resource Centre. We have invited staff and the community to choose an angel from our tree in the lobby and deliver an unwrapped gift to Andrews & Co by December 6th at 9am. The angel will tell you the age and gender of the child and some ideas of what they have told Santa they would like.  The Orleans-Cumberland Community Resource Centre will then come and collect all the gifts in time for their Christmas Program!

    Thank you everyone for your support!

     

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