Sometimes in Canada, you may come across types of income that you don’t have to report.
Things like GST credits, child tax benefits, and some government payments or refunds are examples. But if you win that 649, you don’t have to report it. You do have to report the interest it will earn when you wisely invest it, so don’t confuse the two. If you were the victim of a crime, government compensation is non-taxable. And most gifts and inheritances fall in the non-taxable category. Life Insurance may also be non-taxable, but make sure you double check this. And for those of our friends on strike and receiving strike pay, that is considered non-taxable.
For more information on types of income that you don’t have to declare, Revenue Canada has a page devoted to this topic.
One of the most frequent questions we get is in regards to PST and software. The Provincial government has put out PST Bulletin 105 to address this. This Bulletin defines software ” …means a software program that is delivered or accessed by any means, or the right, whether exercised or not, to use a software program that is delivered or accessed by any means. Examples of software include source code, executable code,operating system software, application software, “apps” and gaming software….”
Are you involved in any of this? If so, you may have to register for PST. The purchase of software has PST on it. That means if you are *selling* software to someone in BC, you may be charging PST unless a specific exemption applies. Exemptions cited in this Bulletin include “…Exemptions for software under the previous PST will be reimplemented with the PST, including but not limited to, exemptions from tax on software in the following circumstances. Custom and custom modified software; Software used for the purpose of being processed, fabricated, manufactured or incorporated into: other software for the purpose of retail sale, or goods for the purpose of retail sale or lease. Services provided to software, including installation and modification services,will not be subject to PST…”
for More information, check out Bulletin 105.
The Services for youth program has a “Career Focus” page. It details funding of up to $16,000 for employers who may be hiring post-secondary students in a career position. This enables them to gain work-place experience in a position related to the career for which they have studied. It also helps employers finance a term employee. It is a continuous intake program, but it is noted that applications should be sent about 4 months prior to the anticipated start date.
You can get further information on this program from Service Canada’s Youth Services Page on Career Focus
If you are after the program application because you already have that perfect post-secondary student in mind, Service Canada has that has well.
And if you do participate in this program, please let us know how it goes for you. We are interested in hearing your feedback.
This is another reminder to be aware of creative fraudsters. Recently a client came to us with an email they received from “Canada Revenue Agency (CRA)”. The email claimed they were entitled to a refund from the filing of their personal income tax return. The email stated they could obtain the refund through direct deposit by clicking on an attached link and entering their bank account information. The link brought them to a site that looked in every way like the actual CRA website. It was very convincing. Luckily, in this case the client was suspicious, and came to us for clarification. This email was a scam.
It is important to remember that CRA will never request information from you through email or text messaging. They will only contact you by mail or phone.
If you are not sure about the authenticity of a call or letter it is best to phone CRA at 1-800-959-8281 to ensure it is legitimate.
Volunteer Burnaby recently held their Annual General meeting in the lovely setting of Burnaby City Hall. There were some interesting reports but the most fascinating was the presentation from Volunteer Grandparents (Volunteers for Intergenerational Programs Society). This Society had its 40th anniversary AGM in conjunction with Volunteer Burnaby. They had some of their original members, the people who started the society, give a presentation as to what it was like originally. It was really interesting to hear the stories of how the Society got formed back in the 70′s and to see some of the people they had affected.
Volunteer Grandparents is exactly what it says. They match younger people with surrogate grandparents where an extended family doesn’t necessarily exist. Their website has more information but we hope to hear more about the good work they do.