November 2010 - The Bulletin Magazine

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TAX TIPS CONTINUED for each late month, to a maximum of 20 months. This higher penalty would only be charged if the taxpayer has also received a formal demand to file from the CRA. If you file your return late because of circumstances beyond your control, CRA may waive or cancel the latefiling penalty they have charged you. If this happens, complete Form RC4288, Request for Taxpayer Relief, and mail it to CRA. Only requests relating to tax years ending in any of the 10 calendar years before the year you make the request will be considered. For example, a request made in 2010 must relate to the 2000 or a subsequent tax year to be considered. If the taxpayer fails to pay the required amount of tax on time, even if his or her return was filed on time, he or she will be subject to arrears interest. The interest, which is not tax deductible, is compounded daily and charged at the CRA prescribed rate plus an additional four per cent. The rate (changes quarterly) indicated below is in effect from July 1, 2010 to September 30, 2010. Income tax • The interest rate charged on overdue taxes, Canada Pension Plan contributions, and Employment Insurance premiums will be 5%. • The interest rate paid to corporate taxpayers on overpayments will be 1%. • The interest rate paid to non corporate taxpayers will be 3%. • The interest rate used to calculate taxable benefits for employees and shareholders from interest-free and lowinterest loans will be 1%. The technical interpretation In a technical interpretation (2005-0119721E5), the CRA was asked to comment, in light of the legislation, whether various penalties, fines and interest imposed by various taxing statutes are deductible. Penalties: The CRA responded that, under the new legislation, no deduction is permitted for any fines and penalties other than those specifically prescribed by the tax regulations. Currently, only three penalties are prescribed: • the penalty for late payment of GST, • the penalty for late payment of duties, and • the penalty for the late remittance of the September 11 Air Travellers Security Charge. Interest: The new non-deductibility rule does not, however, generally apply to the deductibility of interest. That being said, the Income Tax Act has its own specific rule introduced in 1989 that specifically prohibits interest on unpaid income taxes to be deductible. This may be contrasted with the Excise Tax Act (which imposes the GST), which does not contain a similar provision and thus interest owing on late GST remittance would be tax deductible. With respect to interest on provincial taxes owing, the CRA stated that such interest would also not be deductible in computing income. Finally, the CRA confirmed that any interest assessed under the Canada Pension Plan Act or Employment Insurance Act due to an untimely remittance of an employer source deduction would be deductible in computing business income. Bookkeepers should set up separate accounts for deductible and non-deductible interest and penalties. Ian Hawkins is the principal of Mount Albert Tax Company located next to the Post Office on Centre Street, Mount Albert. 26 The Bulletin | NOVEMBER 2010 www.TheBulletinMagazine.com
SNEEZE FACTS for SNIFFLING WORKERS Sneezes, like it or not, give your honker a voice. These sudden and often violent explosions of air and liquid were once thought to be little more than your nose’s way of cleaning up shop. However, with a little understanding about sneezeology, individuals around the world are embracing the spasmodic interruption and celebrating the sneeze. What your Sneeze says about You The explosion caused by a sneeze may just provide the behavioral indicators necessary to get to know your new colleague. A sneeze can act as a dead giveaway of your true personality, according to Patty Wood, sneeze expert. While a sneeze is a sneeze, according to Wood, the idiosyncrasies that accompany the act are behavioral giveaways. For example, restraining your sneeze suggests that you dislike conflict and hope to get on well with others while a fast and decisive sneeze displays personal efficiency. Sneeze in Threes? Yes, Please! Survey results show that 50% of successive sneezers are charismatic, creative and good communicators. The other 50% miss out, according to surveys, and pick up the cost of extra tissues for being triple-threat sneezers. Think your triple sneezing session is worse than a one-ply tissue? Think again. The world record holder for successive sneezing, UK resident Donna Griffiths, sneezed for 978 days in a row. Donna sneezed up a storm in ’81, producing around one million sniffle explosions. Since around 100,000 bacteria fly out with each sneeze, Donna may have spread up to 100 billion bacterial buddies by year end. While the source of Donna’s unfortunate sneezing session is unknown, we do know that sneezing normally occurs when particles take shelter in your shnozz. Pollutants from the air and dust bunnies from behind the filing cabinet enter into your nose, causing the human body to expel them in a fabulous spectacle of 100mph spray. Look Toward the Light for Sneeze Stimulation Your glowing computer screen or curtainless window may be to blame for your sneezes, that is, if you’re lucky enough to have a photonic sneeze reflex. 1 in every 3 people sneezes as a result of light sensitivity, with other sneeze summoning activities including over eating, shivering, and eyebrow tweezing. Corporate Kleenex for Sneeze Filled Workplaces While individual sneeze style sings of your personality, workplace sneeze parties reveal only the location of your abundant dust bunny supply. Toronto software company SAS Institute constructed a Green office building with the intent of fighting the “sneeze factor” normally inherent in old, stuffy buildings. The new post renovation open office environment now allows air to circulate better. That tickle in your nose is looking for escape, so don’t be afraid to let it out in the board room. Make sure you cover your sneeze with your sleeve! THANK YOU I would like to take this opportunity to express my gratitude to the residents of East Gwillimbury for their show of support for me during this past Municipal election. I would especially like to show my heartfelt appreciation to my Campaign Team for their hard work, invaluable contribution of time and effort, and their dedication. Sincere congratulations to our new Town Council and I wish them all the best during their upcoming term. Thank you, Paul Taylor www.TheBulletinMagazine.com NOVEMBER 2010 | The Bulletin 27
Page 1 and 2: www.TheBulletinMagazine.com THE Bul
Page 3 and 4: CONTENTS IN EACH ISSUE 6 WHAT’S O
Page 5 and 6: East Gwillimbury Skating 2010/11: E
Page 7 and 8: celebrating our 120th anniversary,
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Page 11 and 12: DECEMBER EVENTS Saturday, December
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Page 17 and 18: November 11th More Than Just One Da
Page 19 and 20: Remembering to say thanks (NC)—Wh
Page 21 and 22: Veterans' Week 2010, November 5 to
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November 2010 - The Bulletin Magazine

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