Over the past year we have become aware of more instances of fraud than we had in the previous five years combined. What we've seen and, what studies have confirmed, is that major fraud is often committed by a senior, trusted individual who has worked in an organization for a long time. Fraud can go undetected for many years, especially if red flags are ignored. We thought it would be prudent to remind clients to be vigilant and to look into suspicious circumstances whenever they occur. So what are some situations that might arouse your suspicions? • Can you think of someone who is reluctant to change their position even when offered a promotion? • Is there someone who is surrounded by people who never challenge them? • Does that person respond negatively when they are challenged? • Is there excessive secrecy in a department and reluctance to provide information when requested? • Does someone have a "less than cordial" relationship with auditors or outside accountants? • Does that person seemed overly stressed for no apparent reason? • Do they have the opportunity to manipulate payroll, expenses, banking transactions or other financial information? What we recommend is that you be vigilant, ask questions and don't be intimidated. Shake things up. Be assertive when reassigning work, reviewing procedures and asking for information. Review your internal controls to ensure they are working. Obtain outside help if you need it. Don't think fraud can't happen to you, because it can happen to anyone.
June 23rd deadline for claiming your rebate for municipal campaign contributions
If you made a contribution of $50 or more to one or more candidates for an office on the Council of the City of Ottawa you may be entitled to a rebate. You should have been issued a receipt entitled Receipt - Candidate Campaign Contribution - Rebate Program for the 2010 Municipal Election. The contribution must have been monetary (i.e. not for goods or services rendered) and made by an individual. Here is some information about the rebates that can also be found on the City of Ottawa's website:
How are rebates calculated?
A minimum contribution of $50 is required to be eligible for a rebate. An individual who makes contributions to more than one candidate may apply for a rebate in respect of each contribution (minimum contribution of $50 per candidate) but is not entitled to receive total rebates exceeding the maximum rebate of $187.50.
Contributions of less than $50 will not receive a rebate.
Contributions of $50 to $150 will be rebated at 75 per cent.
Contributions of $151 to $300 will be rebated at 75 per cent of the first $150 and at 50 per cent of the remaining amount.
Contributions exceeding $300 will be rebated $187.50 only (since the maximum amount of rebateable contributions is $300).
NOTE: This means, the absolute TOTAL maximum amount of money rebated will be $187.50 for contributions made to one or several participating candidates.
Deadlines
Rebate cheques will be issued in August 2011 provided you have submitted your rebate application by June 23, 2011 and provided your candidate has complied with all provisions of By-law 2005-505.
If your candidate has extended his/her campaign as a result of a deficit, rebate cheques will be issued in January 2012 regardless of when you have submitted your application(s).
How to apply
Fill out the application form as indicated on the back of the receipt. Rebates are not automatically paid. You must submit your receipt/application to the Elections Office. The application may be delivered in person, or submitted by mail to the address shown on the application form, provided that it is received by the deadline.
Residents who wish to file their application in person may do so at any City of Ottawa Client Service Centre (CSC) or the Elections Office during regular hours of operation. To find out more, read the rebate program FAQs at the link below or contact the city of Ottawa Elections Office.
Bogus CRA Emails Send Recipients to Unsafe Website for Refunds
Some individuals are receiving emails that look like they are from CRA but they are not. The recipients are instructed to follow a link to access a "refund form". The link looks like CRA URL but it takes the user to a website that has been reported as unsafe.
We have copied one of the emails below (without the link) so you can easily identify it should you also receive one.
As of the beginning of this year the self-employed can elect to participate in the federal Employment Insurance program for special benefits. The special benefits that will become available to participating self-employed individuals are: • Maternity • Parental • Sickness, and • Compassionate care.
Maternity benefits are available to birth mothers for a maximum of 15 weeks.
Parental benefits are available to biological or adoptive parents for 35 weeks while they care for a newborn or a newly adopted child.
If someone is sick, injured or quarantined they can be covered by EI insurance for a maximum of 15 weeks.
6 weeks is available to someone who needs to be away from work to care or support a family member who is seriously ill with a significant risk of death.
In order for a self-employed person to make a claim he/she will have to have been participating in the program for at least one year. In addition they will need to have earned at least $6,000 in self-employed earnings in the preceding calendar year.
One advantage for the self-employed is that they will not be required to pay the employer portion of premiums, only the portion normally paid by employees.
Once a self-employed individual makes a claim they will be required to pay EI premiums as long as they are self-employed. Anyone who has not made a claim can opt out of the program at the end of any tax year.
Québec residents who are self-employed are already eligible for maternity and parental benefits through a provincial program. They are eligible for reduced rates if they are interested in participating in the federal program for sickness and compassionate care.
This blog entry highlights a few of the changes that were announced in the 2009 federal budget on January 27th.
First I should note that there were no new corporate rate reductions announced. However our finance minister did confirm that the government plans to make Canada more competitive by becoming the country with the lowest corporate tax rates among the major industrialized economies. As previously announced the general corporate tax rate is still scheduled to decrease from 19% to 15% by 2012.
The good news for small business was a $100,000 increase in the small business tax deduction. The annual business limit for Canadian-controlled private corporations eligible for the reduced small business tax rate increased from $400,000 to $500,000. This change is effective January 1, 2009 and is pro-rated for fiscal years straddling this date.
Consistent with the small business deduction change was the announcement that the phase-out range for investment tax credits for scientific research and experimental development is increasing by $100,000 so that the phase-out range is no longer $400,000 to $700,000 but $500,000 to $800,000.
More good news for manufacturers was that the temporary increase in the capital cost allowance rate for manufacturing and processing equipment to a 50% straight–line rate has been extended for eligible assets acquired in 2010 and 2011.
For eligible new computers and system software acquired in Canada after January 27, 2009 and before February 2011, a CCA rate of 100% applies with no half –year rule. That means that businesses can deduct 100% of most computer costs if they are incurred before February 2011.
There were also some changes on the administrative side. The government has increased the number of companies and situations where returns must be filed electronically (e-filed). Now all corporations with annual gross revenues over $1 million will be required to e-file their income tax returns. Additionally, tax information returns that include over 50 items (instead of 500) must be e-filed after 2009. So if your company has 51 T4’s to file next year you will need to do it electronically. To encourage everyone to follow the new rules, the budget also introduced a penalty for filing in an incorrect format.
There was some good news for individual taxpayers who own a home that is due for a renovation.
For 2009 a new, non-refundable temporary tax credit will be available to homeowners for improvements to a principal residence. The credit will apply to expenditures between $1,000 and $10,000, incurred for work acquired after January 27, 2009 and before February 2010. This credit can generate tax savings of up to $1,300 for homeowners.
Those are some of the 2009 budget highlights for businesses and individuals.
