webtip

PRIVATE HEALTH SERVICES PLAN (PHSP)

In an August 18, 2015 Technical Interpretation (2015-0581431E5, Underhill, Cynthia), CRA confirmed that in most cases a deduction for PHSP premiums paid for a sole proprietor (subject to the limitation in Section 20.01) can be made, even if the spouse of that sole proprietor is also a sole proprietor and deducts an amount in respect of premiums for another PHSP that covers the same individuals.

For further information see VTN Monthly Tax Update Seminar, Issue No. 412

CRA ISSUED WARRANTS: ACCOUNTANT'S 5 "R" ACTION PLAN

Getting issued a warrant from the CRA can be stressful. Watch Paul K. Grower BA (Hons), LLB and Joseph R. Devaney CPA, CA discuss the 5 "Rs" for accountants to follow if this happens.

These are the five “R”s that will get you through it:

  1. Relax – try to – lots of pressure and stress

  2. Respond – review warrant / call counsel

  3. Remember – who / what / where / why?

  4. Recognize – privilege and protect it

    • You cannot assert privilege over it “all”.

    • But, if in doubt – assert (CRA should seal the docs).

  5. Report – to client and counsel ASAP.

Want to learn more from Paul? Register for the Lunch and Learn course Tax Disputes.

CHILD CARE EXPENSES – CAREGIVER IMMIGRATION

In an August 14, 2015 Technical Interpretation (2015-0580291E5, Dubis, Robert) CRA noted that costs incurred to hire a child care worker would be eligible child care expenses. Such costs include fees to an immigration lawyer and to Service Canada to obtain a labour market opinion, advertising expenses, placement agency fees, and mandatory registration fees.

For further information see VTN Monthly Tax Update Seminar, Issue No. 412