Give your Children an Edge with German

“You don’t have real diversity when you have a group of people that look different but think alike.” – Peter Thiel, Billionaire on Multi-culturism

We all face an extremely competitive landscape in which our customers have a multitude of options.  A truly unique resource in Canada to give your child a competitive edge is to learn German.  Immersing yourself in any foreign language will open your mind to new ways of thinking, but why specifically German?

  1. Ordnung muss sein (There must be order).  The syntax is rigid: German sentences are extremely consistently structured. Training the brain like this prepares the brain to be proficient in computer coding (Python) which similar depends on rigid syntax. If you make a mistake in coding, the program will not work.  In Switzerland/Germany there is only ONE correct answer. The universe is governed by math which in general lends itself only to ONE answer that is better than the rest.  On an underlying level, lack of rigidity/discipline implies we have no standards. Rigid standards and more discipline will bring more freedom. 
  2. “Logical” is the best word to describe how German compound words are constructed which makes comprehension clearer, more accurate and thorough. The German language is also straightforward to pronounce once you know the rules dictating it.  Logical rules again aid with computer programming proficiency.  Logical thinking, clarity, accuracy, and thoroughness are all hallmarks of success in the German-speaking world.  

German Language School Edmonton offers Saturday classes which will give your children the competitive edge they need to harness the traits that the German-speaking world is famous for. (Also eligible for Alberta high school credits)

Germany offers free tuition for all Canadian students.  And as with all things Germanic, the universities there are great and have produced many more deca-millionaires than their equally good but expensive Canadian counterparts.  Germany produces quality companies like Audi, Mercedes, BMW, Bosch, and Miele.

German Language School Society of Edmonton
c/o Rio Terrace School
7608-154 Street NW
Edmonton, Alberta
T5R 1R7

@ symbol     Email:

     Facebook : German Language School Edmonton


Business Travel Expenses

You may claim an annual shareholders meeting as long as its reasonable (ie. Banff, Las Vegas for those us in Alberta or 2500km from your corporate home base).

In addition to this, you are allowed to fully deduct all expenses related to attending 2 conventions per year.

Other trips can be partially written off (prorated for personal component) if you can attribute business purposes to the trip. Keep notes/e­mails related to business meetings. You need at least 1 business appointment scheduled before you leave.  Over 50% of the days on a trip must be for business. Your travel days and weekends in between workdays on Friday and Monday count as business. Travel to a destination on Thursday, have a meeting on Friday, stay the weekend, meet with customers on Monday and Tuesday, and Wednesday flying home is 7 business days. This allows for another 6 days at your destination as vacation and still expense your transportation expenses. For everyday that is business, you are able to deduct your lodging, meals, car rentals. So, if your entire trip includes 7 days of business and 6 extra personal days, you will be able to deduct your hotel for only the 7 business days.

Quickbooks Online vs. THUT Wealth

Many customers ran into issues that QuickBooks Online (QBO) could not address, so they were happy to switch to THUT Wealth.

THUT Wealth replaces 2+ vendors (bookkeeping + taxes).  While QBO requires you to hire an accountant to compile the corporate tax return.  If your business is e-commerce, fast food or a nail salon, then THUT Wealth will be much more economical.

QBO is still not entirely automated and is only as a good as its user.  The categorizing of programmed transactions is automated, but in addition to clicking match, you will need to do monthly bank and credit card reconciliations.  We need to reiterate that 1 error in matching or doing the reconciliation wrong will compound errors throughout the file.

If you made 2 sales and deposited the proceeds together at your branch in one lump sum, Quickbooks Online (QBO) is not smart enough to match the 2 received payments to the 1 deposit.

Even as ProAdvisors, if we set up all the “rules” in Quickbooks, you as the user will still need to click “match” when your bank says 1 transaction found.  If you never “lump” your deposits together (more than 1 sale physically deposited into the bank), this will minimize your problems. (meaning, 1 deposit for each sale)

Summary for QBO
  1. Never lump deposits
  2. Never let your account be disconnected from your bank (or you will lose transactions which automatically downloads and you would need to manually type in each one)
  3. Daily: match transactions
  4. Weekly: keep in touch with your ProAdvisor with any problems before they compound
  5. Monthly: account reconciliations
  6. You’ll still need another vendor, an accounting provider (plus if they are a Certified Quickbooks ProAdvisor) to compile the corporate tax return.

While QBO is the most popular cloud accounting solution, THUT Wealth is a 3-step AI:

  1. Autonomous data extraction with THUT AI Extractor

    THUT extracts data from receipts, bank and credit card statements with deep artificial neural network technology.  Cleansing algorithms allow it to extract transactional data that is 100% accurate (saves 90% of the time taken by accountants).

  2. Process transformation with THUT Neural Network Technology


    THUT Neural Network Technology automatically allocates invoices and receipts to financial accounts. All your bookkeeping is done instantly without error-prone human work. Neural network technology can deduct autonomous models by recognizing data in large historic sets.  Our deep learning modules are trained on $2.9 billion of validated transactions to deliver autonomous results that continuously improve.  We use mathematical optimization algorithms to save you money. As with all convex mathematical functions, there is only one minimal value that describes the combined taxes in terms of its variables.

  3. Reporting with THUT Autonomous Technology

    You receive your clear and thorough reporting package in PDF with full-text search and we file everything with the Canada Revenue Agency- on-time and with the best result (unlike humans, algorithms are never wrong). We have countless proof of Edmonton’s biggest firms making costly mistakes.  Their reliability is significantly affected by physical, mental, and emotional states (robots perform flawlessly and don’t need to sleep and recuperate).

Which one is right for you?

Use your pre-tax income to calculate your pre-tax hourly rate (since Accounting is paid for with pre-tax dollars).  If THUT Wealth’s AI cost less than your hourly rate than THUT is for you.  If THUT Wealth costs more than your hourly rate than Quickbooks Online is right for you.

Once you make more than the average person, it does not make sense for you to specialize in something that is not directly related to your ability to generate revenue. This is because of the minimum efficient scale.


Claiming a Company Vehicle

Do you use the vehicle for at least 90% of the time for business?

If not, then please have your corporation write you a cheque for a tax-free mileage reimbursement for the use of your personally owned vehicle.   In this case, do not pay for any vehicle-related expenses through your corporation. Pay for all vehicle-related expenses personally and write yourself the tax-free mileage reimbursement each month.

Click here for the current year’s rate.

If you do, and you have a mileage log to prove you use your vehicle at least 90% of the time for business (NOT INCLUDING TO AND FROM HOME/WORK) then you can buy ANY vehicle under $30,000, and lease any vehicle for under $800/month.  Some business owners lease vehicles for under $800/month until the buy-out is under $30,000.

Taxable benefits for the personal use of corporate vehicles used less than 90% of the time for business make both leasings and buying unadvisableVehicles that will cost you less than the mileage reimbursement will be efficient at hauling as much cargo as required (efficiency here refers to the aggregate of hauling capacity, fuel efficiency, and drag coefficient).  Remember do not choose the full-size version unless it will be 100% full at least 80% of the time.

Business Vehicles that do not require a taxable benefit to be reported

  1. Mercedes-Benz Metris Cargo Van, Sprinter Cargo/Chasis
  2. Ram Promaster, Promaster City, Chasis
  3. Ford Transit Connect, Transit, Transit CC-CA
  4. Chevrolet City Express, Express Cutaway
  5. Nissan NV Cargo, Frontier
  6. Toyota Tacoma

Heavy-Duty Vehicles that do not require a taxable benefit to be reported

  1. Hino
  2. Mitsubishi
  3. Isuzu
  4. GMC W4500

There are 2 possible sources to trigger the post-assessment review (the precursor to the audit)

  1. When we file the corporate tax return the financial statement will have an account like “Equipment rental” and certain industry codes have an expected equipment rental amount.  For example, salons have 0.
  2. There is also a schedule for non-leased assets which is schedule 8 and they ask the details of additions to Class 10 (vehicle code) especially if they are over $30,000.
  3. CRA has access to registry data and conducts post-assessment reviews to see how vehicles are being accounted for.
Business owners must make a clear distinction between corporate assets and personal assets.  If you can not, then reimburse yourself for the mileage.  The current administration follows Keynesian economic policy, stimulating the economy by adding thousands of jobs to the public sector to chase down money from the business sector. This money is used in turn to fund costly public works projects.
Here is a Globe and Mail article about the changing culture at CRA.
 It’s better to do the current year correctly in order avoid being detected because once CRA does a post-assessment they check back on the last 3 years and reassess any charges in the past 3 years.

Protip: White vehicles are statistically the least involved in accidents. While the darker the color the higher it is statistically involved in accidents. Black is statistically the most involved in accidents.

  1. If you purchase a commercial van/truck, the write-off stems from CRA’s prescribed depreciation rate of 30% of the COST.  This way you save the most in the early years of ownership and less and less as its worthless and less for tax purposes. Keep in mind CRA’s requirements are much stricter than the IRS so much of the information on the internet is NOT applicable. The smartest thing for you to do is to FINANCE the purchase at a low rate so that you don’t miss out on the opportunity cost of forking over a chunk all at once.
  2. Leases reduce your taxes by each lease payment so the write-off matches the payment and spreads it evenly over the term, and in some cases gives you optionality (which you pay for) in returning the lease.

Do Canadians Pay Their “Fair Share”?

The top 20% of income earners in Canada pays 56% of the country’s taxes.  The top 1% of income earners in Canada pays nearly 18% of the federal and provincial income taxes, while the bottom 50% will pay less than 9%.  These are examples of Pareto’s principle.

Canada’s use of extensive regulation leads to asymmetry for the top earners.  We enjoy a finite upside to healthcare, safety, and quality of life, but an infinite downside of taxes and escalating run-ins with the CRA. Top earners use less public resources but pay disproportionately more for everything.

Countries that surpass Canada on the Economic Freedom of the World Index (Switzerland, Singapore, and Hong Kong) all view wealth as positive-sum (benefiting everyone) and accordingly, have 0 capital gains tax and overall low taxes.

But the fact is, more Canadian money is invested in Barbados than in Switzerland, Singapore and Hong Kong combined.  Barbados is the 3rd biggest destination of Canadian direct investment abroad. After which is Luxembourg and Cayman Islands (requires a $600K investment into Cayman Islands real estate), while Bermuda follows quickly.  These tax havens with Canadian money are used by large Canadian umbrellas the 0.01% earners and have strict requirements:

  1. You need to stay less than 183 days in Canada to become a non-resident in Canada for tax purposes while taking up residency in Barbados. The increasingly risky alternative is creating a facade by paying Barbadians to be your board of directors.
  2. No employees in Canada.
  3. Your Barbados company must be registered as an IBC ($2,500 CAD one-time fee with $3,800 CAD annual fees) and can sell goods worldwide EXCEPT in Canada and Barbados.
  4. You must have an audit done annually by an audit firm ($7,000 CAD/year)

One catch as of June 20, 2018 – Barbados is currently not allowed to sell on Amazon so you’ll need residency in another country (but not Canada).


Until an expensive offshore tax-haven is feasible, everyone should:

  1. Focus on building a  scalable business.
  2. ONLY once you have #1. Then buy a home no more than 4x your gross annual household income, with no less than 30% down. If you don’t have 30%, either continue to rent or buy a home 2.5x your gross annual household income with 20% down. Once you are ready to retire offshore, take advantage of Canada’s capital gains exemption on principal residences.
  3. Until then, continue to collect $3+ million in cash

Why $3+ million?

  1. You’ll have $500K entrusted to each kid invested until they have followed your entrusted plan and presented their business idea to the board around age 25-28.
  2. You’ll have $500K+ for high-risk investments that could give 10x return, but not affect your life if lost
  3. You’ll have more than enough money not to have to work for the rest of your life not even accounting for $90K in interest $3million could pay you each year at a conservative 3%.

What about the taxes?

You can optimize your 2 biggest expenses: taxes and housing by balancing your draws from your corporation:

If you make the minimum payments towards your mortgage your home will cost you a lot more than it should.  The more aggressively you pay off your mortgage the more taxes you pay since your draws from your corporation determine your personal income taxes.


Part 2: Get Big, Stay Lean: A How-To Guide For Clean Bulkers

Before looking to grow you need to get lean first.  Once you have downsized until the marginal costs of outsourcing exceed the cost of doing it internally, you are ready to get big.

Contrary to popular belief, you can get big without becoming inefficient. Here’s how to get the best results from your bulking plan!

Spend more!

Most people focus on cutting costs, but since most people are unsuccessful, logically you should do the opposite.  In the case of a scalable business, spending more money should result in you earning more money.  Proper scale dictates your earnings increase exponentially as you increase your spending anything that saves you time (employees & outsourcing everything where you don’t have the greatest competitive advantage).

Other than payroll, the only other costs that are worth your brain cells is optimizing your taxes and mortgage interest with your corporate draws.

Target 1 or 2 niche markets and hit it hard!

Spend more specifically targeting paid advertising to dominate niche markets.

  1. Influencers
  2. Word of mouth – referral program
  3. Facebook/Instagram
  4. Google

Choose similar markets 

It is important that when you scale to adjacent sectors, that you are “selling” to the same type of customer you dominated earlier.  Our biggest mistake in business was at the onset of Alberta’s downturn we aggressively marketed our high-end service to the mass market customer.  Mediocre customers are looking for motivation and a magic pill to cure their predicament rather than dealing with the cold truth – that they alone are responsible for their situation. Similarly, our clients that have had success selling to the masses would not be able to upmarket their product with the same marketing and pricing.

Both our new target sectors, together with the first 3 sectors we dominated, have the ability to scale to more employees and more capital assets.  Scaling compounds in favour of these 5 segments since the fixed costs of creating the output are being spread over higher and higher revenues to yield increasing pricing advantages for their inputs, which leads to the same elite customer:

  1. Disciplined and definite people that do the single best valuable thing they can focus on rather than being a “Jack of all trades, master of none”.
  2. A compelling and focused mission that leverages proprietary skills/equipment too hard for average people to acquire or learn from youtube.
  3. Minimum 20% pre-tax margins on annual revenues in excess of $400K.
  4. $1M valuation based on a 2.5x-5x earnings multiple

All easily accomplished with

  1. B2B
  2. E-commerce
  3. Basic food places
  4. Nail salon



“Mua khi máu chảy trong các đường phố.” “Ngay cả khi máu là của chính mình”

“Mua khi máu chảy trong các đường phố.” “Ngay cả khi máu là của chính mình” – Freiherr von Rothschild

2018 mang lại thời kỳ kinh tế bất ổn. Nhưng đối với những người đang chuẩn bị nó có thể mang lại một cơ hội một lần-trong-một-đời để đẩy nhanh tiến độ giàu có của bạn.


Khách hàng nên:

  1. Trả bớt nợ
  2. Cố định lãi suất thả nổi (floating-rate) cho khoản vay mua nhà hoặc xe và cho định mức tính dụng (line of credit)floating rate là interest rate lên xuống hoạc thay đổi theo thị trường line of credit: còn gọi là credit limit
  3. Bán bất động sản nếu như khách hàng đang ở trong tình trạng tài chính khó khăn (kẹt vốn, hoặc không xoay đủ tiền trả nợ) hoạc không cần giữ bất động sản đó nữa.
  4. Không nên mua nhà đến khi giá nhà giảm
  5. Mở một tài khoản US Dollar nếu hàng thường xuyên giao dịch bằng tiền Mỹ
  6. Dự đoán là giá xăng và giá hàng hóa nhập khẩu từ Mỹ sẽ tăng trong năm nay. Các khách hàng nên chuẩn bị tâm lý.
  7. Mua các tài sản giá rẻ (distressed assets) sau khi thị trường chỉnh sửa (market correction), ví dụ như nhà, đất, tài sản kinh doanh và xe. Với dự đoán về lay-offs, các dự án bị hủy bỏ, và lãi xuất tăng cao, nhiều người dân Canada sẽ gặp khó khăn trong việc trả nợ.distressed asset là tài sản dược bán với giá rẻ bởi vì người chủ truớc bị buộc phải bán di khi cần xoay tiền gấp market correction là khoản thời gian mà giá cả các mặt hàng giảm
  8. Bảo đảm HELOC của tài sản nhà đất mà khách hàng đang nắm giữ để khách hàng có thể thu mua các tài sảmn khách với mức giá thấp hơn.A home equity line of credit, or HELOC, giống như a home equity loan khi mà khách hàng dùng vốn sở hữu nhà của mình (equity) để đảm bảo cho credit line
  9. Lấy $ 100 mà bạn nhận được cho Universal Child Benefit mỗi tháng và gửi nó vào tài khoản tiết kiệm của con quý vị. Trong 18 năm ở mức 5%, số tiền đó sẽ tăng lên đến $ 35,000! Đó là $13,400 tiền lời mà quý vị không phải nộp thuế.
  10. Nếu con của bạn làm việc part-time,bảo chúng dùng số tiền thu nhập để đầu tư hoặc gửi số tiền này vào tài khoản tiết kiệm của chính chúng. Sau đó, cho con của bạn “vay” một số tiền tương đương. Việc đầu tư sẽ không phải đóng thuế dưới tên của quý vị, mà con của quý vị phải đóng thuế
  11. Những lợi ích của nhân viên mà phải khai thuế:
  • a vehicle provided by employer
  • fuel and mileage allowance paid to employee (vs. a reimbursement)
  • cellphone & airtime
  • food & lodging
  • flat-screen TV or other prize “won” for referring new employees/customers

Nếu bạn lái một chiếc xe công ty, ghi lại nhật ký số kilomet chính xác của tất cả các chuyến đi kinh doanh và tất cả các chuyến đi cá nhân. Hãy nhớ rằng đi làm từ nhà tới văn phòng không được coi là mục đích kinh doanh. đồng thời, lưu giữ các cuộc điện thoại mà bạn gọi với mục đích kinh doanh khi bạn sử dụng điện thoại riêng của bạn

  1. Những khoản chi tiêu nào có thể khai thuế cho self-employed (tự làm chủ, một mình kinh doanh) Nếu bạn có thể chứng minh rằng chi phí của bạn đã được dùng hoặc phát sinh để tạo ra thu nhập trong khoản thời gian hiện tại hoặc tưong lai, và số tiền chi tiêu là hợp lý, không bao gồm bất kỳ chi phí cá nhân và đời sống, CRA cho phép khai thuế những khoản chi tiêu này.
  2. Chi phí Auto: Một bản chép chi tiết dược yêu cầu, trong đó báo cáo quãng dường kilomet cho sử dụng cho mục đích kinh doanh và mục đích cá nhân kể tính toán tỷ lệ khấu trừ. Một số chi phí có thể được báo cáo trên cơ sở không có biên nhận: bãi đậu xe, rửa xe, trả tiền điện thoại hay bất kỳ chi phí phát sinh khác mà không thể nhận được một biên nhận.
  3. Chi tiết phân phối sử dụng số tiền cá nhân vào việc gì (personal use allocation)
  • Giữ các khoản chi tiêu, biên lai cá nhân vào một tài khoản khác hoặc folder riêng
  • Kinh Doanh bán mỹ phẩm cần phải báo cáo một số tiền hợp lý cho các tiêu dùng cá nhân, trừ khi họ có thể chứng minh họ không bao giờ sử dụng bất kỳ các sản phẩm cho riêng mình. (cửa hàng quần áo, cửa hàng tạp hóa, các trang trại, bán cá và các cửa hàng tương tự).
  1. Các loại ích được miễn thuế (không cần phải khai thuế):
  • Quà tặng cho các ngày lễ đặc biệt (không phải bằng tiền mặt hoặc gift card)
  • các bữa ăn được trợ cấp
  • đồng phục và các quần bảo hộ lao động
  • các điều kiện giải trí bao gồm tài khoản thành viên của hồ bơi và phòng tập thể dục
  • Chi phí di chuyển, dọn nhà
  1. Quý vị có biết:Trong việc thu thuế các CRA có quyền tịch thu tài sản và đăng ký vật thế chấp lên bất động sản mà không cần thông báo. CRA khuyến khích mọi người báo cáo hành vi trốn thuế bằng cách gọi văn phòng dịch vụ thuế địa phương một cách ẩn danh. CRA có cán bộ và người hoạt động bí mật để thu thập bằng chứng cho việc điều tra các cáo buộc hình sự.