Business succession planning is a critical process for business owners in Canada. The process involves planning for the transfer of ownership and leadership of a business to another person or group of people, either within or outside the family. According to a study conducted by the Business Development Bank of Canada, 60% of small and…

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We are often asked by our clients how they should treat the carrying costs of vacant or undeveloped land for tax purposes. We are hopeful this blog will assist people to understand the appropriate treatment. Background Owners of vacant land incur carrying costs associated with ownership. Examples of such costs include property taxes, general maintenance…

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If you have an employee that is valuable to your company, you may want to give them a gift for a special occasion, such as their birthday or the birth of a child. But at what point does it become taxable to them? Cash gifts All cash gifts to employees are taxable no matter the…

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The BC Government recently announced that effective January 1, 2022, employees covered by the Employment Standards Act are entitled to receive 5 paid sick days per employment year. This is in addition to the 3 unpaid sick days which were previously available. What employees are eligible? Any employee who has been employed for 90 consecutive…

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Baker’s Law : Bad Clients Drive Out Good Clients Over the years, Pinnacle has developed a client ranking system. This system has proven invaluable in sustaining and enhancing our business culture. We hope we can help others by sharing a key piece of this system – client resonance. What is “Client Resonance”? Client resonance is…

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Do you own a small business corporation in Canada? Do you and your family receive compensation from the corporation and have medical expenses? If the answer to both of these questions is yes, you may want to consider the benefits of a private health services plan (PHSP). Private Health Services Plan A Private Health Services…

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As you probably know, beginning in January 2019, B.C.’s Medical Service Plan premiums are being transferred to businesses through a new payroll tax called the Employer Health Tax. It applies to regular employers with payroll above $500,000 and charitable and not-for-profit employers with payroll over $1,500,000. Pinnacle Professional Accounting has compiled the most relevant information…

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Do you need to register? If your company’s total payroll for 2018 was less than $500,000 and you anticipate that amount to remain under $500,000 for 2019, no action is required. If your total payroll was over $500,000 but less than $600,000 and the same is anticipated for 2019, you will need to register for…

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Many small businesses don’t realize they can save time and money by using the Quick Method of Accounting for GST/HST. The purpose of this method is to eliminate the need to calculate Input Tax Credits (ITCs) by simply remitting a portion of gross revenue. The Quick Method is available for most small businesses that have…

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What is the GST New Housing Rebate? When an individual purchases or constructs a new home, or substantially renovates an existing home, the individual pays GST on the purchase price or on the costs of renovation. The GST New Housing Rebate provides a refund to the individual for a portion of the GST paid. The…

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