James D. Peros C.A. C.P.A

FRAUD PREVENTION Income Tax Scams  Beware of telephone calls or emails from persons pretending to be CRA agents and asking for personal information or promising you a tax refund.  According to the Canada Revenue Agency (CRA), an increasing number of Canadians are receiving telephone calls from persons falsely presenting themselves as CRA agents and aggressively asking for personal information such as credit card, bank account, passport numbers and even social insurance (SIN) numbers. (Keep in mind that CRA already knows your SIN.) This type of telephone scam, as well as other similar kinds of scam perpetrated through email, could result in identity theft and significant financial loss for unsuspecting taxpayers. How the Scam Works  The bogus calls have a readily recognizable structure. Callers identify themselves as “CRA agents”, provide an “ID number” and return telephone numbers within the local tax office area code. Callers usually make one or more of the ...

Virtual Offices Office Alternatives Virtual offices reduce costs significantly for certain types of business. Offices are familiar places that serve practical functions: the site where employees work, a location to meet with clients, and a centralized storage space for paper files. Historically, many service-based businesses (e.g., insurance, accounting, research, finance or sales) were able to maintain bricks-and-mortar offices because they had the critical mass needed to justify the cost and overhead of commercial space. The definition of workplace has changed considerably and continues to evolve because the nearly ubiquitous availability of portable tools and technology has profoundly changed the way we can work. The Internet is required for most kinds of work. WiFi and cellular network coverage mean Internet access is available nearly everywhere. Similarly, the portability of computers makes working from an airport, coffee shop or even a park possible. Laptops under...

A Joint Commitment Any business is a joint enterprise between its employer and its employees. Working Together Employers and employees benefit from each other. Certainly employers have responsibilities for their employees as the many rules and regulations contained in employment legislation demonstrate. On the other hand, employees must understand they too have to conduct themselves responsibly to ensure their employers continue in business. Employees should understand that, if the business they are working for goes under because their behaviour has led to low productivity, layoffs, lawsuits and weak earnings, no one benefits. Employment contracts should be designed to ensure the continued well-being of both the employee and the employer. The contract should cover remuneration, hours of work, days of work, breaks, vacation pay, deductions from pay, job location, overtime requirements, duties and responsibilities. These areas of common concern are a starting po...

TAXATION TIPS MEDICAL RECEIPTS Make sure you collect and keep all your receipts for tax-deductible medical and moving costs. Now is a good time to take a look at two tax deductions that taxpayers often think little about until the approaching income tax deadline sends them scurrying to find all those illusive receipts they might need for the end-of- the-tax-year meeting with their CPA. Over the last few years, the Canada Revenue Agency (CRA) has made many changes to allowable medical expense deductions. Technological advances and recognition of non-traditional treatments have created a broader range of deductions. By way of example, claims are now allowed for:  phototherapy equipment for treating psoriasis or other skin disorders    vehicle modification to enable wheelchair-bound individuals to drive a vehicle    medical marihuana if the person is authorized under the Controlled Drug and Substances Act to purchase or produce this otherwise il...