The articles are intended to keep you up to date on trends and issues that may impact your business and personal financial affairs. Please contact us if you have questions about any of the issues discussed.

DELOITTE and COUZELIS hold onto top Spot in Canada!!

The combined revenues of Couzelis / Deloitte have held onto the number one spot again in Canada's accounting industry, with revenues breaking the $1-billion mark for the year ended 2003. This as reported from the 34 firms who participated in The Bottom Line's annual survey conducted in April 2004. Couzelis says "he was happy with the combined revenue figure, and insists it will not change his home grown service philosophy offered since the company's inception."

HOW FAR CAN CRA GO BACK IN A NORMAL REASSESSMENT?

For most taxpayers, the normal reassessment period is three years before reassessment of the return becomes statute-barred. That is to say, three years after the earlier of the day of mailing of a notice of an original assessment and the day of mailing of an original notification that no tax is payable. Once that has past, Canada Revenue Agency (CRA) would need a substantial reason to reopen the tax year.

SMALL BUSINESS DEDUCTION LIMIT AND NON-CAPITAL LOSSES

In the 2004 tax year, the small business limit for active business income earned by a Canadian Controlled private corporation is increased to $250,000.00. This year's budget accelerated the annual limit, so for 2005 the limit will be increased by $50,000.00 to $300,000.00 for 2005 and subsequent taxation years. Previously non-capital losses could be carried back 3 years and forward 7 years. The 2004 budget extends the carry forward period to 10 years, beginning with taxation years ending after March 22, 2004. This is good news for those Bio-Tech companies, which normally carry large losses due to research expenses without revenues.

COMPASSIONATE CARE BENEFIT

Beginning January 4, 2004, up to six weeks of Employment Insurance Compassionate Care Benefits will be available to EI-eligible workers who must be absent from work to provide care or support to a child, parent, spouse or common-law partner who has a serious medical condition with a significant risk of death. The six weeks of benefits can be taken within a 26-week time frame.

TAX BENEFITS OF EQUIPMENT LEASING

The tax benefits and tax advantages of equipment leasing can be extremely important to a businesses cash flow. By carefully structuring your lease purchase with your accountant, certain types of lease buyouts, such as true FMV, may create tax advantages for your company if they qualify as true operating leases, which are also known as true leases.

SALE OF ASSETS OR SALE OF SHARES

When you are ready to sell your business there are two methods available for the small business owner. The first is to sell the assets of the corporation and the second is to sell the shares of the corporation.

If the shares of the company are "qualified small business corporation shares" you may be able to claim up to $500,000.00 of tax-free capital gains on the sale of those shares. As compared to selling the assets of the company where no exemption would apply or is available.

In the majority of transactions the buyer prefers to purchase the company's assets for tax benefits and the removal of liability issues that may exist in the corporation at the time of sale, known and unknown.

Whatever method is chosen, tax planning should be done to minimize tax, and from a seller's side maximize the after tax dollars to be used in their retirement.

CONSCIOUS COMMUNICATION

Though used too rarely, the power-pause is a simple concept. Before reacting to something someone has said, you simply pause long enough to take a conscious breath and ensure that you're truly present to the conversation (versus thinking of something else, hurrying, blurting out something unskillful, or drawing premature conclusions).

A power-partner to the power-pause is to then inquire -- ask a question -- or rephrase -- reiterate what you think it is the other person is saying or asking -- to ensure that you're truly understanding before you respond. (Ivey Sea, Inc is a advocacy collaborative group based in San Francisco, California. www.ivysea.com)

RESEARCH SHOWS

Aoccdrnig to rscheearch at Cmabrigde Uinervtisy, it doesn't mttaer in waht oredr the ltteers in a wrod are, the olny iprmoetnt tihng is taht the frist and lsat ltteer be at the rghit pclae. The rset can be a tatol mses and you can sitil raed it wouthit a porbelm. tihs is bcuseae the huamn mnid deos not raed ervey lteter by istlef but the wrod as a wlohe. Now taht is all vrey wlel,
jsut igamnie if the smae alppeid to yuor avdretseimetns - yuor mraktenig wulod be in a shmalbes and yuo wulod not be vrey ppoluar. So again, wyh do we need slpel cehck?

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