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October 2013 PADGETT BUSINESS SERVICES� Vol. 11, No. 10
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Greetings!
Hope you enjoy the October Newsletter. As always, we are here to answer any questions you may have regarding your small business.
Citizens and corporations of Alberta who are making payments by cheque to the Provincial Government should make them payable to Government of Alberta (formerly the cheques were made payable to the Minister of Finance). Payments to the Federal Government are made payable to the Receiver General.
Sincerely,
Karin & Gerald
(403) 452-8183
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The 2013 Federal Budget introduced the concept that Canada Revenue Agency (CRA) will pay financial rewards to individuals who provide information on major international tax evasion.
Find out more!
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Lifetime Capital Gains Exemption (LCGE)
The 2013 Federal budget proposes to increase the LCGE to $800,000 of capital gains realized by an individual on qualified property. It is effective for the 2014 tax year.
The LCGE will be indexed to inflation for the years following 2014. The new limits apply to any taxpayer who has claimed the LCGE previously.
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Door Prizes at Company Functions
In a 2013 Technical Interpretation, CRA was questioned about door prizes received by all attendees at a company social function.
Here's what they answered!
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Estate Planning
Estate planners often suggest that the RRSP/RRIF holder designate a beneficiary of the plan. There are many advantages: - Probate fees can be avoided because the funds transfer direct to the beneficiary.
- The funds are not exposed to the liabilities of the deceased's estate.
- No elections are required for the "refund of premiums" status.
- Premium refunds allow a tax-deferred transfer of funds.
- Reporting on the transfers to a surviving common-law partner or a spouse can be avoided.
- It avoids the exposure where a beneficiary will not sign the agreement which would require the estate to pay tax on the account value.
- It avoids the situation where the executor overlooks the situation entirely.
Find our more! |
 Padgett Business Services is dedicated to meeting the tax, government compliance, profit & financial reporting and payroll needs of businesses with fewer than 20 employees in the retail and service sector of the economy. This publication suggests general business planning concepts that may be appropriate in certain situations. It is designed to provide complete and accurate information to the reader. However, because of the complexities of the tax law and the necessity of determining whether the material discussed herein is appropriate to your business, it is important you seek advice from your Padgett office before implementing any of the concepts suggested in this newsletter.
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