Nineteen-year-old Max moved from Calgary to study full-time at the University of Ottawa on August 15, 2008. Although he received a scholarship, he decided to get a job at the local grocery store to earn some pocket money during the school year. Max has taken the course "Responsible Citizenship and Canada's Tax System." This course is provided to educators by the Canada Revenue Agency (CRA).

...with the new Tax-Free Savings Account

Ottawa (Ontario), January 2, 2009. The Honourable Jim Flaherty, Minister of Finance, the Honourable Jean Pierre Blackburn, Minister of National Revenue and Minister of State (Agriculture), and Mr. Peter Aceto, President and CEO of ING DIRECT Canada, today welcomed the availability of the new Tax-Free Savings Account (TFSA) introduced by the Government of Canada in the 2008 Budget.

"The Tax-Free Savings Account is the single most important personal savings vehicle since the introduction of the RRSP," said Minister Flaherty. "It will give Canadians more flexibility than ever in saving for the future. Effective January 1, Canadians 18 years of age and older can set aside up to $5000 every year in a variety of savings options and never pay tax on the income earned or on withdrawals."

T2 filing made easy

Did you know…

That you can file corporation income tax returns electronically from your desktop computer? The benefits of using the Corporation Internet Filing service include receiving an immediate confirmation of receipt and faster processing and refunds. Join us in creating a sustainable environmental footprint by reducing our paper consumption.

Tax professionals can use their EFILE number and password to file eligible corporation income tax returns on behalf of their clients. Need to pay a balance owing? Many businesses find it convenient to use their financial institution's Internet or telephone banking service.

For more information on filing a T2 return electronically, visit www.cra.gc.ca/corporation-internet.

Abstract- The future of the accounting profession is being shaped by changing workforce demographics. Statistics show that the number of women and dual-career families entering the labor pool is increasing. Like other professions, the field of accountancy has come to recognize that the younger generation of employees are more concerned about balancing their private and professional lives than older workers. Accordingly, accounting organizations headed by the AICPA and accounting firms across the US are teaming up with businesses to develop programs designed to help both employers and employees address lifestyle issues that face dual professional families. One of the concerns that need immediate attention is the improvement in the career opportunities of women accountants. Also requiring consideration are flexible work arrangements, such as telecommuniting and compressed work weeks, to improve the productivity of both men and women in the accounting profession.

In recent years, nearly 50% of recruits entering the profession have been women. This year 12 to 18% of the new partners at some of the largest CPA firms are women.

Is it time for the profession, its societies, and individual firms and companies to examine the reasons for this disparity? And what about the lifestyle issues that face today's dual professional family?

Four keys to maximizing the sale price of a business.
BY MARK WARDELL

My client wants to sell her business in a couple of years. How can she convert her business’s personal goodwill into business goodwill to maximize the sale price?

Goodwill is a major component of the value of a business and forms the better part of its owner’s “profit” when it’s time to sell. Personal goodwill is the portion of that value associated with the owner’s name, reputation, contacts, skills, and abilities. Unfortunately, it is extremely common to find that the majority of a business’s goodwill value is linked directly to the owner and therefore tied up in un-sellable, personal goodwill.

Azita Dehmobed,
TACC Accountant

 
Working away from home?

The Canada Revenue Agency (CRA) is reminding Canadians to properly indicate their province or territory of residence on their tax returns. This ensures that you are paying the taxes you owe, and allows the CRA to properly distribute the taxes it collects on behalf of provinces and territories.

When you let us know where you were living on December 31, it helps to determine which province or territory will receive your tax dollars. The CRA collects taxes for individuals on behalf of all provinces and territories except Quebec. Services and social programs that you and your family use on a day-to-day basis are directly affected when you don't pay taxes to the proper province or territory.

It's the law.

Ottawa, Ontario March 3, 2008… The Minister of National Revenue, Gordon O'Connor, is launching the Canada Revenue Agency's participation in Fraud Prevention Month by encouraging Canadians to protect themselves against identity theft. Interacting with over 30 million individuals, businesses, and other organizations each year, the Canada Revenue Agency (CRA) takes the protection of taxpayer information very seriously.
“The CRA considers the protection of taxpayer information our top priority” said Minister O'Connor. “March is Fraud Prevention Month in Canada. It is an important reminder that we all need to take precautions to protect our personal information, including keeping access codes private and choosing your tax preparer or other professionals carefully before sharing your confidential information.”

Direct Method

The direct method, although less popular, is favored by many financial managers because it reports the source of cash inflows and outflows directly, without the potentially confusing adjustments to net income. Instead of starting with a reported net income, the direct method analyzes the various types of operating activities and calculates the total cash flow created by each one. Before beginning the direct method, all accrual accounts must first be converted to a cash figure.

VI. General Format for a Statement of Cash Flows

Cash payments include

Note: While cash inflows from interest or dividends could be considered investing or financing activities, the FASB classifies them as operating activities (which means you should too!).

IV. Investing Activities

Investing activities include transactions and events involving the purchase and sale of securities (excluding cash equivalents), land, buildings, equipment, and other assets not generally held for resale. It also covers the making and collecting of loans. Investing activities are not classified as operating activities because they have an indirect relationship to the central, ongoing operation of your business (usually the sale of goods or services).