I am in business to serve, to find ways to help my clients do better and work with less stress and improve their finances. That's why I am happy to announce our new partnership with Canadian Financial with the goal of helping more clients business to grow and succeed.

Canadian Financial offers access to traditional & alternative lending options plus access to dealer programs, insurance programs and leading edge financial technology options. With access to over 25 programs and 230 lenders, Canadian Financial is here to help you reach your goals!

What solutions can you find here?

• Consumer Financing
• Insurance Porgrams
• Business Financing
• Fintech Platforms

Check here to look for a solution for your needs: 
 
Contact us for more details!

I am reaching out to let you know what is new for 2021 Personal Income Tax Season!

• What is the deadline to file your taxes in 2022?
  • On or before April 30, 2022 
  • On or before June 15 for the self-employed

It's important to file before the due date to avoid penalties and late fees, but also to get your refunds and benefits as soon as possible.

When is the last day to invest in RRSPs? 
The final date for 2021 RRSP contributions is March 1, 2022. All the contributions you make before this date are going to be used to reduce your taxable income for 2021! Contact your Financial Advisor today to check your RRSP's room and save money on taxes.
When can you start filing? 
The earliest day to file is February 21 as CRA is still updating tax rates and all the necessary information to process your taxes. 

When can you expect your refund?
This date is not written in stone and CRA will no guarantee a fix timeline, the expected date would be:

• 2 weeks if you file your taxes online
• 8 week if you file your taxes by paper
• 16 weeks if you file from out of the country​

What is the best way to get ready?
Open a "My business" account with CRA to access all your slips, sort out oll your medical expenses, donations and political contributions, documents regarding sale or properties, Income and expenses for activities such as business, rentals, foreing business, etc. Let us know when you are ready!

Principal Residence Reporting
All taxpayers who sell their home must report the sale on their tax return, even if it was their principal residence for the whole time they owned it. There are substantial penalties for not reporting the sale. If you sold your home in 2021,provide us with all the details.

Foreign Property Disclosure
Canadian resident individuals who held property outside Canada with a total cost of more than $100,000 CAD at any time in the tax year must comply with special reporting to the CRA. There are substantial penalties for non-compliance.

Business & Rental Income and Expenses:
You will report your gross income and deduct allowable expenses related to running your business, rental properties. If you have questions regarding the expenses you can claim send us an email and we can share the list with you. 

Employees working from home
CRA has extended to 2022 the "Home Office Expenses" claim and increase it from $400 to $500. This method can be used for tax years 2020, 2021 & 2022. You can still use both the Simplified and the Regular method. Follow CRA link to know more details:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-22900-other-employment-expenses/work-space-home-expenses.html
Still have questions? Send us a message to admin@d

My name is Dayani, Cuban-born 🇨🇺 now living in Ottawa, Canada 🇨🇦 with my 22 yo daughter and my cute dog Lili. Single mom👧, Coffee lover ☕️, and avid reader📚, finding and sharing my voice as I live fully on my terms. I am sharing with you one of my fist pics in Ottawa.

Former Geologist and current Accountant we packed our life in a suitcase and moved 🛫 to Canada 14 years ago to create a better life for us. I was shocked to discover that my credentials were worthless and I had to start all over again.

After landing a "teen" job in a store I went back to school, without any savings.😳 Soon after, I stared working as a junior accountant with one of the most amazing woman I met Marlene L. Grant💖. She tauhgt me so much: canadian accounting, software, process, more work ethics and kindess as a way to live.

Moving aparently "up" I starting working for a huge firm but after 2 years I lost my job 🤦‍♀️after a change in management and decided to open my own business to support myself and my family without the pain of not getting a paycheque just because another person said so. And I wanted time for myself and my daughter. Family is really important to me.

Been in business for more that 5 years 🙋‍♀️(add to that 5 more years of thinking I had a business when I was just working for myself and not been well paid) had allow me to open my mind and grow with my community and clients. I'd used also personal and energy healing ❤️‍🩹 that helped me realize that I have something to say, something important to share. My struggles and experience as an Immigrant single mom who found her place, her voice and is building her chosen lifestyle can be useful - and I hope inspiring - for others to realize that building a profitable business, measuring the right numbers💰 is an option, a way to utilize your skills and serve others.

This is why I intend to guide other immigrant women to gain confidence around their finances and be independet. That is the WHY of my Survey. It's not a selling tool, I am just gathering information on what is important to you and your business. I am collecting information to serve you better! And there is a prize! Check Before  Sunday the 30th midnight.

Can you help me? Really appreciate all the help!

👇👇👇👇👇👇
https://forms.gle/SmpuDzgpoksYp9VbA

​After you file your tax return there is always a possibility that you and your business are going to be audited. And there is also no guaranteed way to do well. The best way to navigate this process is working proactively to have all the documents in order and being able to present all the documents are requested from you.

​I wanted to share some tips with you to avoid the pain of paying penalties and to have the best set of books to be stress free in case of and audit. These tips will help you get the best result from an audit:

1. Know your rights: It's important to know why the auditors are requesting a particular document and to understand your rights and the possible criminal implications. Read CRA website and be on top of the tax rules. be aware that you can challenge the results of the audit.
2. Don't withhold requested information: always provide the documents on the date they are required. But be aware to provide just the documents they asked for, not too many documents. Just they ones they asked for.
3. Communication is key: don't avoid contacting the auditor in advance to set up dates, place of meetings, if you need representation. Having a representative will save you stress as they will deal with the auditors. But don't have meaningless conversation with the reviewer, just ask the questions they ask.
4. Be proactive: always keep proper records, record only the expenses you are allow to, keep mileage and home office records!!! If you have employees, keep always contracts in place, and be aware of all the labour rules, both provincial and federally.
5. Be responsible: Even if you hire someone to file your taxes, be responsible and review the data, the consistency and that you are in line with other business in your same industry.

These tips work if you file personal or business taxes. The auditor job is to find areas where additional taxes can be collected and yours is to keep your money safe. Always work in advance. Be ready. 

We can help you with the record keeping, helping you having an audit-proof set of books. Contact us today if you have questions. 

Photo by Scott Graham on Unsplash

​Your business is growing and you need to start hiring! Congrats! But before finding the candidates you need to decide: are you looking for a subcontractor or for an employee? Are you outsourcing a service or hiring an ideal candidate with the skills to grow in your team? What are the rules to follow?

As a business owner you need to comply with government regulations when hiring. Canada Revenue Agency (CRA) is really strict with these rules as they are going to decide if you need to deduct liabilities from the person paycheque, if the person is eligible for regular employment insurance, how they are going to be treated under the Canada Pension Plan program, and decide the conditions of employment.

The easy way is not always the best way here. Most of the time due to not knowing the full consequences of hiring in the wrong way you can get in trouble with CRA en end paying penalties and ate fee on the liabilities you needed to remit to CRA. 

There are 2 to main areas that CRA asks when auditing a business hiring system (Quebec has its own set of rules) that rule for all the business: 

1. Intention?
2. Control?

If the intention for both the worker and the payee is having a contract for service (business relationship) or they intend to enter into a contract for services (employment relationship)? Sometimes the intention is clear and both parties are in agreement, even they write and sign an agreement, and this is the proof of common intent. If there is no contract, CRA assumes there is not common intent and to decide the intention an examination of both parties' action is required. Be aware that this is just one step, just intention doesn't determine the employment status.

Once you can determine the intention, then you go to decide who is in control. This point will clarify the working relationship. These question relate to the following elements:

• level of control the payer has over the worker's activities
• Who is the person providing the tools and equipment
• whether the worker can subcontract the work or hire assistants
• the degree of financial risk of the worker
• the degree of responsibility for investments and management of the worker
• the worker's opportunity for profit
• any other relevant factors, such as written contracts

Based on all the answers CRA decide if the actual working conditions are consistent with a contract of service or a contract for services.

The actual degree of control may be difficult to determine when you are hiring a professional such as doctors, engineers, etc as their expertise and specialized training will require less directions and guidance in their activities. They tend to be more independent that let's say a cashier who you give an schedule, daily activities to complete, and systems to follow.

When you provide the tools, decide the working hours, take all the financial risks and are the only one with the capacity to hire someone as assistant for the work and/or subcontract the work, then you are hiring an employee and you have obligations under the Federal Labour standard  and your provincial Employment Standards https://www.canada.ca/en/services/jobs/workplace/federal-labour-standards.html). You are obligated to calculate payroll and deduct Employment Insurance, Canada Pension Plan and Income Taxes, both federal and Provincial. At the end of each month you will need to remit the deductions plus the employer burden to CRA under your Payroll account.

If hiring subcontractors, then they are in control of their schedules, they have the capacity of hiring another person to do the job, as you are contracting a service, the result! They are also incurring in financial risks. The subcontractors need to keep their own set of books, save money to pay their own taxes and register for HST/GST when needed.

Either if you are looking for a subcontractor or an employee you need to be informed and make the right decision. Don't go with the note of "saving money" and "make things easier" hiring a subcontractor when in reality the relationship is for employment. Be complaint of the regulations and your business will flourish with succeeds and growth.

Are you still in doubt? Contact us today with your questions! 

Photo by Gabrielle Henderson on Unsplash

The government of Canada has created various programs to support Canadians and business facing the effects of the COVID-19. The programs are divided in 3 sectors: Individuals, Business and Industries

There are programs to support individuals and families, who are facing cuts or totally loss of income, as well as special sectors of the public:

• Increasing the Canada Child Benefit
• Special GST credit payment
• deferral on tax payments
• Support on mortgage payments
• Canada Emergency Response Benefit (CERB)
• Indigenous Community Support Fund
• Supporting Preparedness in First Nations and Inuit Communities
• Improving access to essential food support
• Enhancing the Reaching Home Initiative
• Youth support: mental health.
• Reduced minimum withdrawals for Registered Retirement Income Funds
• Supporting the delivery if items and personal outreach
• Immediate and essential services through the New horizons for Seniors Program
• Suspended repayment and interest on Canada Student Loans and Canada Apprentice Loans
• Temporary Changes to Canada Summer Jobs programs.

To support business the government is focusing on:

• Avoiding layoffs and rehiring employees
• Deferred payments
• Access to Credit
• Supporting Financial Stability
• Supporting self-employed individuals

For special details on each program I'm sharing with you the CFIB reports and FAQ that covers all these aspects in a really detailed and easy to read way: https://www.cfib-fcei.ca/en/small-business-resources-dealing-covid-19

Related to industries, the programs are focusing on:

• Increasing credit available for agriculture, fisheries and aquaculture
• support for airports
• support for broadcasters.

These is merely a summary of all the programs available to you, your family and your business. Check the official website for details on each program: https://www.canada.ca/en/department-finance/economic-response-plan.html

Photo by Nathaniel Bowman on Unsplash

Reading the news, and I still can't find the proper solution for business owners. There are great news but still I see to much bureaucracy and not all the points solved.  The government is taking strong and immediate actions but still there are people falling through the cracks.

What is still the same?
Income Support for employees: 

• Regular benefits: unemployment
• Special benefits:  Sickness, maternity & parental, compassionate care and Family Caregiver - also for self-employees (with previous arrangements with service Canada)

What has change under the special measures for these benefits?
t involves Canadians without paid sick leave who are sick or quarantined: now the waiting period have been waived, and there is no need for medical certificate to prove you are sick. Regularly, you need 600 hours of insurable work to be eligible , for the emergency measure the minimum hours are not defined yet

What is new?
The original Care & Emergency Benefits packages are now ONE package (simplified): under the “Canada Emergency Response Benefit”, eligible Canadians will be paid $2000/m during 4 months. This is a taxable benefit. 

Who is eligible? 

• Canadians who have lost their job, are sick, quarantined, or taking care of someone who is sick with COVID-19,
• working parents who must stay home without pay to care for children who are sick or at home because of school and daycare closures.
• The CERB would apply to wage earners, as well as contract workers and self-employed individuals who would not otherwise be eligible for Employment Insurance (EI).
• Additionally, workers who are still employed, but are not receiving income because of disruptions to their work situation

When can you apply?
After April 6 and will receive the benefits after 10 days

What we don't know yet about the“Canada Emergency Response Benefit” (CERB)?

Where to apply?
It's still unclear. To be proactive be sure to open your online account bot with CRA and Service Canada:

• CRA my Account: https://www.canada.ca/en/revenue-agency/services/e-services/e-services-individuals/account-individuals.html
• My Service Canada Account: https://www.canada.ca/en/employment-social-development/services/my-account.html

CRA is stating that: "The EI system was not designed to process the unprecedented high volume of applications received in the past week. Given this situation, all Canadians who have ceased working due to COVID-19, whether they are EI-eligible or not, would be able to receive the CERB to ensure they have timely access to the income support they need."

But right now there is uncertainty on how the self-employees who don't have kids, or are not sick, or taking care of others and people operating business that are incorporated can access those funds? Not sure yet! Is there a way we can all been covered? We need to be informed and keeping track of the news.

Still going for business:

1. Corporations have until September 1st to pay any tax payments
2. Subsidy to cover 10% of payroll costs for a period of 3 months
3. $10 billion in credit through Business Development Bank of Canada (BDC) or Export Development Canada (EDC)

Stay tuned for further updates as the news are released in the coming days. Stay strong and be safe.

Claiming business expenses can be intimidating when you are not clear if you are allow to claim the charge or not. 
​
First we need to understand that there are 2 scopes here: business and taxes. As a business owner all your Meals and Entertainment expenses are 100% included on your Profit and Loss expenses. Yes, the full amount is business related (conditions apply) and must be shown as part of your results because the expense is incurred for the purpose of earning income. 

Now, as CRA rules only 50% of the expense, or a reasonable amount (always lower than 50%) is eligible to be claimed as a deduction from your income. Same for the HST you pay on meals, you can claim the Input Tax Credits (ITC) only for 50% of the HST paid.

Conditions apply? YES! as per CRA tax rules to be eligible the meals expense must be:

• meals eaten with customers
• the cost of tickets for a theatre, concert, or athletic event, or other performance
• the cost of private boxes at sports facilities
• the cost of room rentals to provide entertainment, such as a hospitality suite
• the cost of cruises
• the cost of admissions to fashion shows
• the cost of entertaining guests at clubs (night, athletic, social, and sporting), as well as on vacation and similar trips
• taxes, gratuities, and cover charges are included in entertainment expenses

What can't be included?

• costs incurred for use of recreation facilities and club dues
• purchase of season tickets for sporting events (unless satisfactory proof is provided that the tickets are a promotional expense)
• meals claimed while outside a sales territory or on a vacation

Best practices for calculating, claiming and keeping records of Meals and Entertainments Expenses are: 

• Keep clear records of the transactions - both receipts, the one showing the payment, and the one showing the details and HST.
• Write down details on the receipt - client name, contact, purpose.
• Add to your calendar the meeting date and client
• Take a picture of you receipt or scan it ASAP - ink fades and maybe at year end you are not able to see the details.
• Keep daily records on your accounting books.

Always remember, the burden of proof is on you. Work efficiently each day and keep your records organized. 

Still having questions? No worries! Send me a message and we can chat! Let's keep your business organized and on track.

Photo by Freshh Connection on Unsplash