Burlington Propsoses Another Cultural Landmark

As a member of the Board of Directors of Burlington Museums, I can report that a dedicated group of volunteers has worked tirelessly to bring a long-standing dream to fruition. That is, for Burlington to have a world-class museum, not only to continue the legacy of Joseph Brant, but to host blockbuster exhibits normally reserved for the likes of the Royal Ontario Museum. All that stands in our way is Federal infrastructure funding , the announcement of which is imminent.  This new building will become a key anchor in the west end of Burlington Downtown and will be a major tourist attraction.

Burlington City Council is on Board, (if we secure the Federal Funds), and a Campaign Cabinet is ready to go ahead with a fundraising campaign to help finance the building

Below is a video prepared the Project Architect, Chamberlain Architects that shows the proposed dramatic redevelopment of this Lakeshore Road landmark.

Enjoy, and let’s hope that we secure our Federal Funding!

Talking HST on TV Cogeco

The Chamber of Commerce is hosting a special series of workshops for HST. You can watch the video for more details

Contact the Burlington Chamber of Commerce for more information.

Francis

Chamber of Commerce Hosts Minister Tony Clement

I was very pleased yesterday, January 14th, to host  and moderate a business forum with Federal Minister Tony Clement.  20 key Burlington business leaders joined in an open, round table discussion that encompassed such wide-ranging topics as financing for innovation, job creation in a knowledge economy, sustainability of the Ontario economy and the impact of federal infrastructure financing,  as well as forging links between education and business.  This is grass-roots advocacy in its purest form, as most of our two hours with Minister Clement was spent asking him unscripted questions on any topic that was under his control as Industry Minister.  As was the case when Federal Finance Minister Jim Flaherty visited, there was a heightened debate on the link between business and education.  I would like to again thank Burlington MP Mike Wallace for organizing Minister Clement’s visit.

You can read more on the Burlington Chamber of Commerce website and in today’s Hamilton Spectator Article.

2010 Brings Additional TFSA Room

With the turning of the calendar to a new year, I want to remind you of a potentially significant tax savings opportunity.  You will recall from reading Year End Tax Planning #2 the new Tax Free Savings Accounts are cumulative, meaning that each new calendar years opens another $5,000 of contribution room.  For example, say you deposited $4,000 last year into your TFSA account.  The unused $1,000 will increase this year’s $5,000 limit, for a total available contribution of $6,000.  Conversely, if you withdrew money last year, you can replace it this year.  See my earlier post for complete details

Francis

Home Renovation Tax Credit Almost Finished

You only have until February 1, 2010 to take advantage of this temporary Credit  You will recall from reading Year End Tax Planning #1 that eligible renovation expenditures made from January 28, 2009 through January 31, 2010 only, qualify for the credit.  Don’t miss out.  For further details, see my earlier post on the topic.

Regarding the deadline, this excerpt form the CRA website states “Canadian homeowners should be aware of the deadline to ensure they are able to claim the non-refundable tax credit of up to $1,350 for their home renovation or alteration. Eligible expenses for goods acquired during this period, even if they are installed after January 2010, will still qualify. If an eligible expense involves work performed by a contractor or a third party, and the work is not completed by the end of the eligible period, only the portion that is completed before February 1, 2010 will qualify even if a payment has been made.  In addition, there is no requirement that homeowners pay the amount in full before the deadline. For example, if you are billed by a contractor for goods acquired and work performed before the deadline and you do not pay the bill until after the deadline, your expenses would still be eligible for the HRTC provided that you met all the other requirements.” [read more]

Francis

Year End Tax Planning #7 – Personal Payments

There are a number of payments that must be made by December 31st in order to be included in your 2009 personal income tax return.  Don’t miss out! 

• The final tax instalment payment for 2009 was December 15th (if you missed it, make it immediately as  non-deductible interest on late or deficient instalments is currently 5%).
• Charitable donation payments must be made before the end of the year. The maximum annual claim is 75% of net income. Unused amounts can be carried forward up to five years. Where publicly listed shares are donated, the gain is no longer taxable.
• Eligible medical expenses can be claimed for any 12 month period ending in the calendar year. Only amounts in excess of the lesser of 3% and $2,011 are eligible.
• Reminder: Parents of children under the age of 16 are entitled to a non-refundable tax credit of up to $500 for each child registered in an eligible program of physical activity.

Other payments that must be made by December 31 to be considered in the 2009 tax return include:

• Investment management & custody fees
• Loan interest
• Safety deposit box
• Alimony/maintenance payments
• Political contributions
• Tax shelter payments
• Tuition fees
• Child care
• Professional fees
• Interest on family loans (generally at the prescribed rate) must be paid by January 29, 2010 to avoid income attribution. Consider new arrangements for family income splitting while the prescribed rate is low – currently 1%.  See Year End Tax Planning #3
• Review family trusts for any action that’s required by December 31, 2009.

If you have any questions or concerns, please contact me.

Francis

Horne LLP Boasts a 100% Pass Rate for 2009

On December 4, 2009, the Ontario Institute of Chartered Accountants released the results of the 2009 Uniform Final Examination (UFE).  The UFE is the final step in the life of a student whose goal it is to attain the Chartered Accountant or CA designation.

The UFE, written in September, is a national three-day evaluation that assesses competencies including essential knowledge, professional judgment, ethics and the ability to communicate. The UFE is an important component of the CA qualification program, which includes prescribed education, practical experience and examination requirements. Only those who complete this entire program successfully are entitled to use the internationally recognized designation of Chartered Accountant, a profession known for superior financial expertise, strategic thinking, business insight and leadership.

The partners of Horne and our entire team wish to congratulate our fellow team members, and our newest CA’s on their outstanding achievement as we celebrate a 100% pass rate for 2009.

Congratulations go to Christy Holland, Justin Mastrangelo, and Stephanie Fasulo on a job well done!

Year End Tax Planning #6-RDSP Accounts

RDSP stands for the new Registered Disability Savings Plan.  In this article I will give you some basics of these new plans.  You will want to open and contribute to this new account prior to the end of each calendar year so as to maximize any Federal matching dollars available.

Introduced in the 2009 Federal Budget, the RDSP allows you to save and invest for yourself as a disabled person, or for a disabled family member.  It operates in a similar manner to an RESP (Registered Education Savings Account) with contributions being non-deductible, matching monies from the Federal government, and by allowing your savings to accrue in a tax-free environment.

When you make contributions to your RDSP account, you may be eligible for matching government dollars in the form os Canada Disability Savings Grants (CDSGs) and/or Canada Disability Savings Bonds (CDSBs)

The lifetime contribution limit for an RDSP is $200,000, with no annual limit. Anyone can contribute to the RDSP with the written permission of the plan holder. Contributions are not tax-deductible and are not included in income when paid out of an RDSP. Investment income earned in the plan accumulates tax-free. However, grants, bonds, and investment income earned in the plan are included in the beneficiary’s income for tax purposes when paid out of the RDSP

The funds in an RDSP account can be used for anything as long as it is being spent for the benefit of the disabled person for whom the plan was created.

To qualify for an RDSP account, a person must be:

• Eligible for the Disability Tax Credit (disability amount);
• A Canadian resident; and
• Under 60 years of age.

If the person is a minor, their parent or legal representative may establish the RDSP for their benefit.

For more information on the RDSP, please contact me.

Francis

Remembering 2009

Byline:  Francis Mackan

As printed in the Burlington Post, December 9, 2009

How will business people remember 2009?

As Christmas and the end of another calendar year approaches, we begin to see numerous Year In Review pieces from all kinds of media sources.  You can read about the best in music, cars or fashion.  You can look back on winners and losers in politics, sports, or entertainment and yes, we can look back and pay witness to the economic storm we all weathered together.  For business people, calendar 2009 may be remembered solely for the battering the world economy took.

For the Burlington Chamber of Commerce, representing some 1,100 local businesses, the economy was front and center in 2009, and naturally we wanted to address the issue as proactively as possible in order to help our members. 

Early in the year we saw increases in attendance at our main networking functions, a sign perhaps that Burlington businesses were not prepared to be complacent.  One of our members produced a bumper sticker saying “I refuse to participate in a recession” and I saw many of our members live that motto.

However, our Board of Directors and our dedicated staff wanted to make sure our members were prepared and that is why we created our Economic Uncertainty Series.  This unique seminar series was presented free to our members, and without sponsorship, as a way to educate our members during these tough economic times.  Topics like Finding Financing In Tough Economic Times, or Accounts Receivable Management were well received and the feedback we received suggested that these were useful tools to give to our members.

Despite the economic downturn, our membership level reached an all time high in 2009 of 1,108 members.  This proves once again that the Chamber’s networking, education and advocacy work provides great value and gives all businesses a voice.

I wrote previously that I thought the City of Burlington and the Region of Halton business community would weather the recession better than the rest of the province and country, and looking back, I think this has been proven.  Despite the downturn, there are more businesses in Burlington today than there were a year ago, a positive sign the Burlington is a great place to do business.

For Burlington, the year 2010 will not be without its challenges.  We have a municipal election looming, we have a lot of work to do for our hospital, and our City Council will be making big decisions on capital projects proposed for our City. 

Join the Burlington Chamber of Commerce and be a part of the Voice of Business In Burlington.

The Case for Sales Tax Harmonization (HST)

I am definitely in favour of the Harmonization of the Ontario Sales Tax, the introduction of which is set for July 1, 2010.  All Business owners should also be 100% in favour of the new HST.  As a business owner, if you are sitting on the fence, or are against it, then you have not done your research.  For the individual person on the street, the argument in favour of HST has apparently been harder to sell, but in my opinion, only because of the misinformation from opposition politicians and the unwillingness of the media to counter those claims with the facts.

However, the following is a great article from McLean’s magazine on the case for HST.  It presents the broader arguments in favour of it, and outlines some broader concepts regarding the competitive landscape for Ontario businesses.  This should be everyone’s starting point in their understanding of the case for HST.  Once you are convinced of the broader arguments, the details don’t seem quite so unappealing.

Click here to read the McLean’s Article

In addition, on October 27, 2009, the Burlington Chamber of Commerce hosted a Business Forum with the Honourable John Wilkinson, Ontario’s new Minister of Revenue, speak to a Burlington business audience about the Province’s move to the Harmonized Sales Tax (HST).  As the host of that session, I thought Mr Wilkinson did an excellent job of promoting the case for HST, and he did it in a completely non-partisan manner.  Most refreshing.  There were many more smiles in the audience at the end of that session, than at the beginning.

Click here to read the text of Mr. Wilkinson’s speech

Ontario is one of the last heavily industrialized areas to the HST table.  There is a lot of empirical evidence right here in Canada that will tell us that this is good for all Ontarians

If you have questions or concerns regarding the proposed HST, please contact us.

Francis