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Experienced Bookkeeper

Our Langley location is looking for a full-time experienced bookkeeper. 

The position requires extensive knowledge and proficiency with:

  • Sage Simply Accounting and both QuickBooks Online and desktop versions
  • Payroll preparation, ROE’s, WCB, T4 and T5018 preparation
  • GST and PST preparation and reporting
  • T1 preparation for individuals and proprietors experience an asset

The successful candidate must be able to work well within a team and have excellent communication, organization, and time management skills. Experience working in a public practice environment with deadlines and a strong understanding of a variety of businesses and their bookkeeping requirements is an asset.

We are an established firm with a great working environment and benefits.

Please respond with your resume and salary expectations by email to vspindor@eprcpa.ca. Thank you to all applicants however only those being interviewed will be contacted.

No phone calls please.

EPR CLIENT NEWS BULLETIN – MEDICAL PRACTITIONERS AND THE GST

April 10, 2018

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Unlike most businesses, medical practitioners[1] only need to collect Goods and Services Tax (“GST”) on certain types of supplies and are restricted from claiming an input tax credit (“ITC”) on costs incurred based on the type of supplies provided.

It is important that a medical practitioner correctly evaluate the GST status of their supplies as either taxable supplies, zero rated supplies or exempt supplies.

Taxable Supplies

If a medical practitioner is a GST registrant and provides a taxable supply they will be required to collect and remit GST on the taxable supply.  Taxable supplies are the most common type of supply and medical practitioners making taxable supplies are required to collect the 5% GST (or Harmonized Sales Tax (“HST”) at the applicable rate).  If a medical practitioner is supplying a service or product which is not a zero-rate or exempt supply then the supply would be a taxable supply.  Any GST paid on costs incurred to make the taxable supply would be eligible for an ITC which would offset any GST collected.

Examples of taxable supplies provided by medical practitioners can include the following: providing reports for non-medical reasons, management fees received, administrative services provided, fees received on research projects, expert witness fees, consulting services, fees for any service which are not diagnostic or treatment based in nature.

A taxable supply may be partially an exempt or zero-rate supply and therefore it is important to evaluate the nature of each transaction and determine what type of supply is being provided.

Zero-Rated Supplies

Some supplies are zero-rated under the GST/HST.  GST/HST applies to these supplies at a rate of 0% and similar to making taxable supplies, medical practitioners making zero-rated supplies are entitled to claim the GST/HST paid on costs incurred related to the making of the zero-rated supplies as an ITC.

Examples of zero-rated supplies provided by medical practitioners are qualifying medical devices, prescription drugs and drug-dispensing services[2].

Exempt Supplies

Some supplies are exempt from the GST/HST and GST/HST does not apply to these exempt supplies.  If you are solely providing exempt supplies you do not charge the GST/HST and you generally cannot claim ITCs to recover the GST/HST on costs incurred to make the exempt supplies.

Examples of exempt supplies are most health, medical and dental services performed by licensed physicians or dentists for medical reasons[3].  This does not include what would otherwise be considered a zero-rated or taxable supply.

What Should You Do?

Medical practitioners should identify if they are providing a mix of taxable, zero-rated or exempt supplies, each of which would result in their respective GST/HST treatment.  Taxable supplies would require GST/HST to be collected while zero-rated and exempt supplies would not require GST/HST to be collected.  GST/HST paid on costs incurred to make taxable supplies and zero-rated supplies would be eligible to claim ITCs while costs incurred to make exempt supplies would not.

CRA has provided administrative guidance on types of supplies and examples of taxable supplies, zero-rated supplies and exempt supplies here: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/charge-gst/charge-gst-hst.html#type.

Please note that what has been outlined above is general in nature and that the GST/HST rules are complex.  Before you make any changes to your GST/HST, please consult your tax or accounting advisor.

Maple Ridge: eprmr@eprcpa.ca
Langley: eprly@eprcpa.ca

[1] Medical practitioner is defined as a person who is entitled under the laws of the province to practice the profession of medicine or dentistry

[2] As outlined in Excise Tax Act and its Regulations

[3] As outlined in Excise Tax Act and its Regulations

EPR CLIENT NEWS BULLETIN – BC BUDGET 2018

February 27, 2018

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On February 20, 2018, B.C. Finance Minister Carol James announced proposed changes to the provincial tax laws in the release of Budget 2018.  While the personal income tax rates and corporate income tax rates were left unchanged from prior announcements, other changes were introduced for:

  • Sales Taxes;
  • Income Taxes;
  • Property Taxes;
  • Affordable Child Care;
  • Elimination of Medical Services Plan (“MSP”) premiums; and
  • A new Employer Health Tax.

Sales Taxes

Provincial Sales Tax

PST rate increase for passenger vehicles – Effective April 1, 2018, passenger vehicles valued at $125,000 or more are subject to a higher PST rate.  From $125,000 to $149,999.99 the rate has been increased from 10% to 15%[1] and from $150,000.00 and above the rate has been increased from 10% to 20%[2].

Income Taxes

Corporate Income Tax Rates

The budget did not announce any changes to B.C.’s corporate income tax rates.  As a result, the B.C. corporate income tax rates remain as follow:

Corporate Income Tax Rates as of January 1, 2018 for Canadian-controlled private corporations

BC

BC/Fed

Active income at small business rate[3]

2%

12%

Active income at the general corporate rate

12%

27%

Investment income[4]

38.7%

50.7

Tax Credits

Tax credits extended – the book publishing tax credit, B.C. mining flow-through share tax credit, farmer’s food donation tax credit and the interactive digital media tax credit have been extended through to the end of 2018[5].

Film incentive B.C. Tax credit – The Film incentive B.C. Tax credit was expanded to include scriptwriting.

Infirm dependent credit and caregiver credits – the infirm dependent credit and caregiver credit have been replaced with a new B.C. caregiver credit to align with the new federal Canada Caregiver Credit.

Property Taxes

Property Transfer Tax 

The property transfer tax rate on residential properties above $3 million has been increased from 3% to 5%.  The property transfer tax rates of 1% on the first $200,000, 2% on the portion between $200,000 and $2,000,000 and 3% on the portion between $2,000,000 and $3,000,000 remain unchanged.

Foreign Buyers Tax 

The additional property transfer tax required to be paid by foreign nationals, foreign corporations or taxable trustees on certain purchases of B.C. residential property has been increased from 15% to 20%.  The area in B.C. in which this additional property transfer tax is levied has been expanded from the Greater Vancouver Regional District (“GVRD”) to include: Fraser Valley, Capital Regional District, Nanaimo and the Central Okanagan Regional Districts.  For residential property purchased in the GVRD there will be no transitional relief.  For purchases entered into in the expanded region before February 21, 2018 there may be some transitional relief.

Speculation Tax

A new annual speculation tax on residential property in B.C. will be introduced in 2018.  This new tax will be effective for 2018 and will apply to the GVRD, Fraser Valley, Capital and Nanaimo Regional Districts, and in the municipalities of Kelowna and West Kelowna.

The speculation tax will target foreign and domestic speculators in B.C. with upfront exemptions available for principal residences, qualifying long-term rental properties and certain special cases.  In the case that the upfront exemptions is not available there is a non-refundable income tax credit to help offset the tax for B.C. residents.

In 2018, the tax rate will be $5 per $1,000 of the property’s assessed value (i.e. 0.05%) increasing to $20 per $1,000 of the property’s assessed value (i.e. 2%) in 2019.  There has been no proposed legislation as of yet and therefore a lack of clarity exists on who this tax will apply too.  A concern is that B.C. residents with secondary recreational properties may be affected.  Presumably, the intention of the B.C. non-refundable tax credit is to lessen this impact for individuals earning income in B.C.

Beneficial Ownership of Real Estate

Corporations will now be responsible in tracking the beneficial ownership information of real estate and developers will be responsible for tracking information concerning the assignment of pre-sale agreements.  These proposed changes are slated to be released July 2019 and are proposed to include a requirement for B.C. corporations to hold accurate and up to date information on the beneficial owners of real property along with other information reporting requirements.

As a result, B.C. corporations with bare trustee relationships for real property need to maintain a register or continuity schedule of beneficial ownership.  The same proposal will require developers to collect and report comprehensive information regarding the assignment of pre-sale purchases.  The information collected will be reported to a designated provincial office and shared with federal tax authorities.

Affordable Child Care Benefit

Budget 2018 has introduced a new affordable child care benefit with expanded eligibility and higher benefit rates than the existing child care subsidy.  The new benefit will be phased in over three years.  The new affordable child care benefit will reduce parent fees for children under age six through a child care fee reduction program.  This benefit will be income tested and the following table illustrates the benefits once the new affordable child care benefit is phased in.

New Affordable Child Care Benefit by Care Type and Income Threshold

Gross Income

$0 to $44,999

$45,000 to $59,999

$60,000 to $79,999

$80,000 to $111,000

Type of Child Care

Maximum Monthly Benefit Amount

Taper Rate of Benefit

Maximum Monthly Benefit Amount

Taper Rate of Benefit

Licensed Group Infant

$1,250

$0.27

$910

$0.35

Licensed Group Toddler

$1,060

$0.23

$772

$0.30

Licensed Family Infant/Toddler

$1,000

$0.22

$726

$0.28

Licensed Group 3 years to School Age

$800

$0.17

$582

$0.23

Licensed Family 3 years to School Age

$800

$0.17

$582

$0.23

Licensed Group School Age

$420

$0.09

$306

$0.12

Licensed Family School Age

$420

$0.09

$306

$0.12

Licensed Preschool

$330

$0.07

$240

$0.09

Licensed Care Surrounding School Day

$420

$0.09

$306

$0.12

Elimination of Medical Services Plan Premiums and the Introduction of an Employer Health Tax

In Budget 2017 the government of B.C. reduced MSP premiums by 50% starting January 1, 2018 and in Budget 2018 will eliminate MSP premiums effective January 1, 2020.

In order to make up the shortfall in revenue Budget 2018 is replacing revenues from MSP premiums with a new employer health tax.

This new payroll tax will come into effect January 1, 2019 with the following rate structure:

  • Businesses with a payroll of more than $1.5 million will pay a rate of 1.5% on their total payroll;
  • Businesses with a payroll between $500,000 and $1.5 million will pay a reduced rate; and
  • Businesses with a payroll under $500,000 will not pay the tax.

The legislation for the Employer Health Tax has not yet been introduced but Budget 2018 mentions that payroll amounts are to be aggregated among associated businesses.

A number of these changes take effect in 2018 with the remaining ones being phased in over the next three years.  If you wish to discuss your situation and how any of the Budget 2018 measures would affect you please contact us for any further information.

Stay tuned for our federal budget commentary after the federal Liberals will deliver their third budget Tuesday February 26, 2018.

Maple Ridge: eprmr@eprcpa.ca
Langley: eprly@eprcpa.ca

 

[1] 12% for private sales or gifts

[2] 12% for private sales or gifts

[3] Generally, on the first $500,000 of taxable income unless taxable capital > $10M

[4] Includes a refundable tax on payment of dividends

[5] Certain credits have been extended to the end of 2021

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