Warning:

 

The CRA is currently reviewing specific investment funds which allow individuals to transfer funds into a self directed RRSP and then borrow money against those RRSP’s.  They have declared one fund in particular a “sham” and have suggested that taxpayers who partake in this fund are using it as a “tax avoidance vehicle”.

 

We highly recommend that individuals contacted by the CRA in this regard seek legal advice. The investment business involved may be interested in reviewing information sent to you by CRA and may possibly be able to help. The Small Business Legal Centre is abreast of the situation and would be able to provide further direction.

Important Information Regarding EI for Self-Employed People

The federal government has passed new legislation allowing self employed people to participate in the Employment Insurance program so that they may claim sickness benefits, compassionate care and maternal/parental benefits.  Although this may seem beneficial, the decision to enter into an agreement with the Commission should be carefully weighed. 

One rule which causes concern states that "you can only terminate your agreement if you have never received EI special benefits as a self-employed person.  If you have received benefits, you cannot terminate your agreement.  In other words, after you receive EI special benefits, you have to continue to pay EI premiums on your self-employment income for the entire duration of your self-employment career, regardless of any change in the nature of your self-employment"

We would caution those interested in this program to fully investigate all rules and regulations on the Service Canada website.

 ECO Energy Retrofit Program

Effective Janyary 1, 2008 you may be able to retrofit a home and qualify for a grant (including mobile homes on foundation and low-rise multi-unit residential buildings).  The firest step is to request an energy audit and select improvements from the home energy action checklist which will be eligible for a maximum grant for a home of $5,000.  The total grant for one individual or entity over the life of the Program is $500,000.  The grants are based on whether you meet the energy criteria.  For more information click here...

New in Canada's Economic Action Plan

Through Canada's Economic Action Plan, the federal government is helping businesses in all sectors of the economy by providing a temporary 100-percent capital cost allowance (CCA) rate on new computer hardware and systems software acquired after January 27, 2009, and before February 1, 2011. This initiative will cost an estimated $340 million in 2009-2010 and $355 million in 2010-2011. To Read more on this click here

 CRA's Tax Tips

Every month the CRA publishes tax tips on it's website.  This can be a very good resource if you like to stay informed on new tax innitiatives and helpful hints.  Simply click on this link to find out what helpful information the CRA has for you.