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.

  • CONGRATULATIONS TO OUR NEWEST CPA’S
    Posted

    Andrews and Co is pleased to congratulate Lauren Sels and Karina Iskakova on becoming  Chartered Professional Accountants.

    Both Lauren and Karina are great assets to the firm and are committed to providing accounting services and lasting relationships with our clients.

    We are very lucky to have these ladies as part of our team!

    Andrews and Co is pleased to congratulate Lauren Sels and Karina Iskakova on becoming  Chartered Professional Accountants.

    Both Lauren and Karina are great assets to the firm and are committed to providing accounting services and lasting relationships with our clients.

    We are very lucky to have these ladies as part of our team!

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  • 2017 Nexia Canada Seniors Conference
    Posted

    Andrews & Co. was proud to send Anik, Lauren and Adam to the Nexia Canada Seniors Conference on November  5th.  This year’s conference, which was led by Dov Wolman from PWGL Inc. and Erez Bahar from Davidson & Company LLP was located in Montreal, Quebec. Representatives from all across Canada attended this event and took part in different accounting discussions and networking sessions.

    The three were very happy to attend the Nexia conference and meet their peers from across the country. They look forward to attending the next conference!

    Andrews & Co. was proud to send Anik, Lauren and Adam to the Nexia Canada Seniors Conference on November  5th.  This year’s conference, which was led by Dov Wolman from PWGL Inc. and Erez Bahar from Davidson & Company LLP was located in Montreal, Quebec. Representatives from all across Canada attended this event and took part in different accounting discussions and networking sessions.

    The three were very happy to attend the Nexia conference and meet their peers from across the country. They look forward to attending the next conference!

    Read More
  • 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 11th 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 11th 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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  • 2017 Montebello Team Bonding Retreat
    Posted

    This past month our Acohar team had the chance to get away from the office and visit Fairmont le Chateau Montebello for a two day team bonding retreat. On the night of arrival staff relaxed by enjoying massages and a lovely dinner at the chateau. On Friday morning each department met to discuss new ideas and future changes. During the afternoon all staff participated in a team bonding curling event which allowed them to network, socialize and collaborate to build new relationships.

         

    This past month our Acohar team had the chance to get away from the office and visit Fairmont le Chateau Montebello for a two day team bonding retreat. On the night of arrival staff relaxed by enjoying massages and a lovely dinner at the chateau. On Friday morning each department met to discuss new ideas and future changes. During the afternoon all staff participated in a team bonding curling event which allowed them to network, socialize and collaborate to build new relationships.

         

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  • EMPLOYMENT INSURANCE: Some Improvements
    Posted

    The 2017 Federal Budget proposed a number of changes to Employment Insurance (EI). Some of the proposals include the following:

    A New Caregiving Benefit

    This benefit will provide eligible caregivers up to 15 weeks of EI benefits while they are temporarily away from work to support or care for a critically ill or injured family member.

    More Flexible Parental Benefits

    This will allow parents to choose to receive EI parental benefits over an extended period (up to 18 months) at a lower benefit rate (33% of average weekly earnings). The existing benefit rate (55% over a period of up to 12 months) will remain available for parents who prefer this arrangement. Finally, women will be able to claim EI maternity benefits up to 12 weeks before their due date (expanded from the current standard of 8 weeks).

    Education While Receiving EI Benefits

    Changes to enhance the ability of EI claimants to pursue self-funded training while maintaining their EI status were proposed.

     

    Action Item: Ensure you are aware of these changes to Employment Insurance.

     

    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 2017 Federal Budget proposed a number of changes to Employment Insurance (EI). Some of the proposals include the following:

    A New Caregiving Benefit

    This benefit will provide eligible caregivers up to 15 weeks of EI benefits while they are temporarily away from work to support or care for a critically ill or injured family member.

    More Flexible Parental Benefits

    This will allow parents to choose to receive EI parental benefits over an extended period (up to 18 months) at a lower benefit rate (33% of average weekly earnings). The existing benefit rate (55% over a period of up to 12 months) will remain available for parents who prefer this arrangement. Finally, women will be able to claim EI maternity benefits up to 12 weeks before their due date (expanded from the current standard of 8 weeks).

    Education While Receiving EI Benefits

    Changes to enhance the ability of EI claimants to pursue self-funded training while maintaining their EI status were proposed.

     

    Action Item: Ensure you are aware of these changes to Employment Insurance.

     

    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.

    Read More
  • DONATION OF PUBLICLY TRADED SECURITIES: Increase the Value of Charitable Giving
    Posted

    An individual who gifts cash or assets to a charity is able to claim a donation tax credit which reduces their personal tax liability. If the individual gifts certain publicly traded securities directly to the charity, they may enjoy additional benefits.

    While the full value of the securities will be a charitable donation either way, if the securities are donated directly to the charity, the taxable portion of the capital gain is reduced to 0%. That means there is no tax liability on the disposition. For example, consider an individual who wishes to gift $5,000. If that individual sells $5,000 worth of publicly traded securities, they must then pay capital gains tax on the disposition. However, if they donate the shares directly to the charity, they are not subject to the capital gains tax, but still benefit from the donation tax credit.

    Though the planning may seem simple there are a number of complexities that may arise. For example, while similar benefits can be obtained when gifting securities acquired through an employee stock option plan, careful planning is required to eliminate the taxable benefit which normally arises on exercise of these options.

    Corporations also benefit from no capital gains tax on these donations. In addition, they receive the added benefit of increasing their capital dividend account by the full amount of the capital gain, potentially allowing payment of tax-free dividends.

     

    Action Item: When planning charitable giving, consideration should be given to gifting publicly traded securities, rather than cash, to better the tax benefits.

     

    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.

    An individual who gifts cash or assets to a charity is able to claim a donation tax credit which reduces their personal tax liability. If the individual gifts certain publicly traded securities directly to the charity, they may enjoy additional benefits.

    While the full value of the securities will be a charitable donation either way, if the securities are donated directly to the charity, the taxable portion of the capital gain is reduced to 0%. That means there is no tax liability on the disposition. For example, consider an individual who wishes to gift $5,000. If that individual sells $5,000 worth of publicly traded securities, they must then pay capital gains tax on the disposition. However, if they donate the shares directly to the charity, they are not subject to the capital gains tax, but still benefit from the donation tax credit.

    Though the planning may seem simple there are a number of complexities that may arise. For example, while similar benefits can be obtained when gifting securities acquired through an employee stock option plan, careful planning is required to eliminate the taxable benefit which normally arises on exercise of these options.

    Corporations also benefit from no capital gains tax on these donations. In addition, they receive the added benefit of increasing their capital dividend account by the full amount of the capital gain, potentially allowing payment of tax-free dividends.

     

    Action Item: When planning charitable giving, consideration should be given to gifting publicly traded securities, rather than cash, to better the tax benefits.

     

    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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  • CHARITIES AND FOR-PROFITS WORKING TOGETHER: Receipts for Cause-Related Marketing
    Posted

    A registered charity may work with a for-profit entity to promote the sale of the for-profit’s items on the basis that part of the revenues will go to the charity. This is commonly called cause-related marketing. On February 9, 2017, CRA published guidance addressing this.

    CRA noted that the benefit that a for-profit receives from this type of arrangement is considered an advantage. The charity must quantify this advantage and reduce it from the amount of the donation to calculate the eligible donation. Where the total value of the advantage cannot be calculated, the charity cannot issue a receipt. That said, CRA noted it may be possible to claim the donation as an advertising expense.

     

    Action Item: Consider this type of arrangement to raise funds for your charity! Or, as a for-profit, to raise your profile in the community.

     

    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.

    A registered charity may work with a for-profit entity to promote the sale of the for-profit’s items on the basis that part of the revenues will go to the charity. This is commonly called cause-related marketing. On February 9, 2017, CRA published guidance addressing this.

    CRA noted that the benefit that a for-profit receives from this type of arrangement is considered an advantage. The charity must quantify this advantage and reduce it from the amount of the donation to calculate the eligible donation. Where the total value of the advantage cannot be calculated, the charity cannot issue a receipt. That said, CRA noted it may be possible to claim the donation as an advertising expense.

     

    Action Item: Consider this type of arrangement to raise funds for your charity! Or, as a for-profit, to raise your profile in the community.

     

    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.

    Read More
  • PROFESSIONALS’ WORK IN PROGRESS EXCLUSION: Changes are Coming
    Posted

    In the past, taxpayers in certain designated professions (i.e., accountants, dentists, lawyers, medical doctors, veterinarians and chiropractors) may have elected to exclude the value of work in progress (WIP) in computing their income for tax purposes. This essentially enabled these professionals to defer tax by permitting the costs associated with WIP to be expensed without including the matching revenues.

    However, the 2017 Federal Budget proposed to eliminate this election, effective for the first tax year that begins after March 22, 2017. Transitional rules have been introduced to implement the change over two years. Once fully implemented, WIP, which is valued at the lower of cost or fair market value, will need to be included in income each year.

    At present, many professionals either do not account for WIP in their financial accounts or account for WIP at its expected billing amount, using staff and partner billing rates rather than cost. These professionals will be required to determine the cost of their WIP in order to comply with these new provisions. There has been some uncertainty expressed regarding how the cost of WIP is properly calculated.

    CRA has stated that the proposed changes are not expected to have any impact on bona fide contingency fee arrangements. That said, some practitioners have expressed concern that this concession has little or no basis in law.

     

    Action Item: If you are in one of the industries impacted, and have not previously tracked the cost of your WIP, consider doing so. Also, budget for the possible additional tax liability over the next two years due to catching up the deferral of WIP.

    In the past, taxpayers in certain designated professions (i.e., accountants, dentists, lawyers, medical doctors, veterinarians and chiropractors) may have elected to exclude the value of work in progress (WIP) in computing their income for tax purposes. This essentially enabled these professionals to defer tax by permitting the costs associated with WIP to be expensed without including the matching revenues.

    However, the 2017 Federal Budget proposed to eliminate this election, effective for the first tax year that begins after March 22, 2017. Transitional rules have been introduced to implement the change over two years. Once fully implemented, WIP, which is valued at the lower of cost or fair market value, will need to be included in income each year.

    At present, many professionals either do not account for WIP in their financial accounts or account for WIP at its expected billing amount, using staff and partner billing rates rather than cost. These professionals will be required to determine the cost of their WIP in order to comply with these new provisions. There has been some uncertainty expressed regarding how the cost of WIP is properly calculated.

    CRA has stated that the proposed changes are not expected to have any impact on bona fide contingency fee arrangements. That said, some practitioners have expressed concern that this concession has little or no basis in law.

     

    Action Item: If you are in one of the industries impacted, and have not previously tracked the cost of your WIP, consider doing so. Also, budget for the possible additional tax liability over the next two years due to catching up the deferral of WIP.

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  • RETIREMENT INCOME CALCULATOR: Ensure you are Financially Ready
    Posted

    The Canadian Retirement Income Calculator (https://www.canada.ca/en/services/benefits/publicpensions/cpp/retirement-income-calculator.html) provided by the Government of Canada estimates retirement income generated through a number of programs such as the Canada Pension Plan, Old Age Security pension, an individual’s employer’s pension plan, RRSPs, and other sources based on past and intended contributions.

    When using this tool, individuals should have their CPP Statement of Contributions, financial information about their employer’s pension, most recent RRSP statement, and any other information related to savings that will provide for ongoing monthly retirement income.

     

     

    Action Item: Use this tool to help assess your financial readiness for retirement.

    The Canadian Retirement Income Calculator (https://www.canada.ca/en/services/benefits/publicpensions/cpp/retirement-income-calculator.html) provided by the Government of Canada estimates retirement income generated through a number of programs such as the Canada Pension Plan, Old Age Security pension, an individual’s employer’s pension plan, RRSPs, and other sources based on past and intended contributions.

    When using this tool, individuals should have their CPP Statement of Contributions, financial information about their employer’s pension, most recent RRSP statement, and any other information related to savings that will provide for ongoing monthly retirement income.

     

     

    Action Item: Use this tool to help assess your financial readiness for retirement.

    Read More
  • DEATH BENEFITS: Tax-Free Employment Benefit
    Posted

    A death benefit is a payment received subsequent to the death of an employee, in recognition of the deceased employee’s services. Up to $10,000 can be received by the Estate or beneficiaries of the deceased as a death benefit on a tax-free basis. As an employment-related cost, this would generally be deductible to the payer.

    A March 14, 2017 Technical Interpretation, addressed several questions related to these payments following the death of an owner-manager.

    CRA noted that the determination of whether an individual is an employee is a question of fact. The fact that an owner-manager received salaries for several years but was only paid dividends in the two years prior to death would not automatically mean that no death benefit could be received. It would be more difficult to support an employment relationship where the individual never received employment income from the corporation.

    The existence of a formal commitment, such as a contract or a Directors’ Resolution, prior to the date of death is not a requirement for an amount to be a death benefit. Finally, a death benefit could be paid out over time, but the $10,000 exclusion applies only once, not once for each year.

     

    Action Item: Consider this tax-free employment benefit.

    A death benefit is a payment received subsequent to the death of an employee, in recognition of the deceased employee’s services. Up to $10,000 can be received by the Estate or beneficiaries of the deceased as a death benefit on a tax-free basis. As an employment-related cost, this would generally be deductible to the payer.

    A March 14, 2017 Technical Interpretation, addressed several questions related to these payments following the death of an owner-manager.

    CRA noted that the determination of whether an individual is an employee is a question of fact. The fact that an owner-manager received salaries for several years but was only paid dividends in the two years prior to death would not automatically mean that no death benefit could be received. It would be more difficult to support an employment relationship where the individual never received employment income from the corporation.

    The existence of a formal commitment, such as a contract or a Directors’ Resolution, prior to the date of death is not a requirement for an amount to be a death benefit. Finally, a death benefit could be paid out over time, but the $10,000 exclusion applies only once, not once for each year.

     

    Action Item: Consider this tax-free employment benefit.

    Read More