Welcome to our newest staff member Tessa Vos who joined Willsey Davis as an accounting technician in January.  Tessa is currently enrolled at GPRC and will complete the Bachelor of Commerce program in April 2014.  Tessa was raised in South Africa and moved to Canada with her family when she was 11 years old.  Welcome to our team Tessa!

Willsey Davis is a bronze sponsor of the annual ACFA Regionale de Grande Prairie Maple Sugar Festival.  This festival celebrating the Francophone culture and heritage will be held at Muskoseepi Park on Saturday March 1, 2014

*  Certain rules regulate the degree charities can participate in political activities.  Is your charity onside?  

See www.cra-arc.gc.ca/chrts-gvng/chrts/cmmnctn/pltcl-ctvts/menu-eng.html.

 *  Are you a US Citizen, Resident or Green Card Holder?  Information exchange and U.S. filing requirements have many implications and procedures to consider.

Travel Costs

In an April 5, 2013 Technical Interpretation, CRA considered whether initial travel costs incurred to participate in a foreign medical experimental drug research project and subsequent foreign travel costs after the drug became available in his locality would be considered a valid medical expense.

When the drug became available in Canada, the taxpayer's Canadian doctor advised the taxpayer to continue monitoring with the foreign doctor who had more expertise with the taxpayer's condition and the specific drug. CRA agreed that the reasonableness test was likely met even though medical services were available in a closer location, and would be considered a medical expense.

In an October 3, 2013 CRA Release (Marital Status), CRA noted that:   

A spouse is a person to whom you are legally married.

A common-law partner is a person who is not your spouse but with whom you are living in a conjugal relationship, and to whom at least one of the following situations applies. Your partner:

(i)  has been living with you in a conjugal relationship, and this relationship has lasted at least twelve continuous months;

(iii)  has custody and control of your child (or had custody and control immediately before the child turned 19 years of age) and your child is wholly dependent on that person for support.

You are "separated" when you start living separate and apart from your spouse or common-law partner because of a breakdown in the relationship for a period of at least 90 days and you have not reconciled.

If you continue to reside in the same household and continue to share parenting and financial responsibilities, CRA will not consider a separation to have occurred for the purposes of the Canada Child Tax Benefit (CCTB) or the GST/HST credit legislation. An exception to this may occur when separate living quarters are self-contained in the same household.

Where there is a marital status change, CRA will recalculate your benefits based on the number of children you have and their ages, your province or territory of residence, and your revised family net income based on your marital status change. Your benefits will be adjusted the month following the month in which your marital status changed.

CCTB: If you or your new spouse or common-law partner have children who are residing with you, CRA will move all the children to the female parent's account. If you are married or living common-law with a person of the same sex, one of you will receive the CCTB for all of the children.   To receive the CCTB, you and your spouse or common-law partner have to file a tax return every year, even if you have no income to report.

GST/HST CREDIT: If you did not apply for the GST/HST credit on your tax return and your status is now separated, widowed or divorced, you can apply now.

Action Item: Contact us as soon as there is a change in your marital status as there are numerous current and future tax implications, such as changes to your Canada Child Tax Benefits and GST/HST Credits!