December 2008 - Plumbing & HVAC

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Shop Management Trucks and taxation Does taking a commercial vehicle home constitute a taxable benefit? The Canada Reve - nue Agency (CRA) and Trade Canada Revenue states that: ‘In addition to what would obviously be considered use of a motor vehicle supplied by an employer that is not in connection with or in the course of the taxpayer’s office or employment, i.e., personal use (e.g., vacation trips, personal shopping trips, etc.), such use includes travel between the employee’s place of work and home, even though the employee may have to return to work after regular duty hours. ‘An exception occurs, however, where (as required by the employer or with the employer’s permission) the employee proceeds directly from home to a point of call other than the employer’s place of business to which the employee reports regularly (e.g., to If an employee takes a service truck home, like this one belonging to Bruce Maly Plumbing in Peterborough, Ont., is that really a benefit to the employee? The courts aren’t so sure. It would appear to exclude technicians who are going to one construction site for an extended period of time Con tractors have a love/hate relationship with vehicles and the taxable implications. The personal driving of an employer’s vehicle is a taxable benefit to the employee. CRA defines personal driving is any driving by an employee, or a person related to the employee, for purposes not related to his or her employment. This includes: • vacation trips; • driving to conduct personal activities; and • travel between home and work (even if you insist that the employee drives the vehicle home). It is not considered personal driving if the employer requires or allows the employee to travel directly from home to a point of call (such as a technician going to the jobsite) other than your place of business to which the employee regularly reports, or to return home from that point. 85% Water Savings Do you have a project that would benefit from 85% water savings? Zurn EcoVantage Pint Urinal Systems provide clean, odorless operation and deliver water and money savings. The Pint ® is ideal for hospitals, schools, institutions, and many other ICI projects. Contact Zurn for more information on a special installation sample offer. Send an e-mail to pintpromo@zurncanada.com Reference the promo code make repairs at customer’s premises), or returns home from such a point. These particular trips are not considered to be of a personal nature.’ (Visit: http://www.cra-arc.gc.ca for more information.) I believe that a service technician who goes from his home to the service calls on a regular basis would be covered as having no personal taxable benefit. Get your accountant’s opinion on this before taking any implementation. However, it would appear to exclude technicians who are going to one construction site for an extended period of time. Employers and employees should keep these records so that the total kilometres driven in a calendar year by an employee or a person related to the employee may be properly apportioned between business use and personal use. Court cases Court decisions would seem to indicate that the standby charge – “the benefit employees enjoy when your automobile is available for their personal use”— does not apply to commercial vehicles. On July 16, 2002, the Tax Court of Canada ruled that extended cab trucks and a van which were provided by the employer and which the employees were required to take home at night Date Description Business Private Total Odometer Kms Kms Kms March 31, 2009 158,000 April 1, 2009 Drove from home to customer site A, 1,000 0 1,000 159,000 then to customer site B, then to office, then to customer site C, then home To survive an audit the employee should keep detailed records. because they were on twenty-four hour call and which contained equipment and instrumentation were for their work and were not “automobiles” and therefore were not subject to the prescribed standby charge. On Aug. 13, 2004, the Tax Court of Canada ruled that a 1998 Ford 150 x 18 extended cab truck was not an “automobile” because it was designed for business and commercial purposes; it does not accommodate more than a driver and two passengers. The taxpayer was allowed the full GST input credit. The interpretation is also made that there would be no prescribed standby charge. To the best of my knowledge this ruling has not been overturned. (Talk to your accountant). A special thanks to chartered ac - countant Collin Johnsen for his input. “PHVAC-Pint85” with your inquiry. Ronald Coleman is a Vancouverbased accountant, management consultant, author and educator specializing in www.zurn.com the construction industry. His web site is www.ronaldcoleman.ca and he can be reach ed by e-mail at ronald@ronaldcoleman.ca. Circle Number 138 for More Information Circle Number 139 for More Information 34 Plumbing & HVAC Product News – November/December 2008 www.plumbingandhvac.ca
FlexBalance e hydraulic bridge for trouble free systems operation. 5900 FlexBalance-Plus featuring PallRing Rings FlexBalance-Plus Separator FlexBalance e Separator r 5900 FlexBalance & FlexBalance-Plus ance-Plus series s Separators Patented Pall Ring micro-bubble separation technology Taco’s patented 5900 FlexBalance and FlexBalance-Plus Separators act as a hydraulic bridge between the primary and secondary circuits inhyd hydronic heating and cooling applications. The FlexBalance-Plus product line incorporates Taco’s patented Pall Ring technology for deep micro-bubble eand dirt removal. Both provide improved system energy efficiency, allowing the use eofsmaller pumps for each system circuit. The Taco 5900 series separators – simple, yet smart. TACO CANADA LTD. 8450 Lawson Road, Milton, ON L9T 0J8 Tel. 905-564-9422 Fax. 905-564-9436 www.taco-hvac.com iSeries Mixing Valves Software Radiant Mixing Blocks Circulators Air Eliminators Electronic Controls ols Hot Water on D’MAND ® ProFit Parts Mixing Valves Circle Number 140 for More Information
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December 2008 - Plumbing & HVAC

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