How Other Accountants Decrease Your Taxes

Willkommen to the second article on our series on terrible accountants and what you need to watch out for before they waste your money and time.
 
The aim is not to harm this Chartered Professional Accountant, this post is only there to give some background information on why clients make the upgrade to SwissBooks and wonder why they have to pay corporate income taxes for the FIRST time after more than 5 years in business. This should also save some unsuspecting business owners the same grief.

 Each time we discuss these details with the clients, they have no idea where his numbers come from.
 
1. A successful Edmonton Tint Shop The accountant wrote off more than $115, 000 of vehicle expenses in the year the client purchased a brand new Mercedes Benz ML63 for over $100,000. (If you have assets of a business (buildings, equipment, vehicles, etc.), you can ONLY claim a yearly deduction on the depreciation on the cost of these assets, also known as Capital Cost Allowance (CCA).  – As this is a vehicle, the rate is 30% and the first year rule applies = $100, 000 / 2 = $50,000 x 30% = $15,000 versus the $100,000+ that the accountant claimed)
 
2. A successful Edmonton Nail Salon – 
  • Strangely in the preceding year, the accountant reported sales which are $100,000 less than the debit/credit card terminal payments deposited in the bank.
  • There was also an unexplained $12,437 of vehicle expenses vs. our itemized $1,412 of vehicle expenses 
3. A corporation running 2 Award Winning Restaurants – 
  • Strangely there is nearly $50,000 of unexplained interest expense in the first preceding year, as well as abnormally high and unexplainable amounts in the second and third preceding tax years.
  • Same story with the repairs & maintenance account: we have nearly $11,000 of itemized entries mostly paid by the client credit card. In the 3 preceding years, the other accountant claimed there was more than $36,000, $38,000 and nearly $50,000 of repairs and maintenance.  
  • For EACH of the years in question, nearly $18,000 + $12,000 +$9,000 were claimed as professional fees when the ACTUAL amount paid for the 3 years is less than the accountant’s claim in 1 year
  • The accountant claimed GST on ALL of the food purchases for the restaurant when most foods do not have GST
  • This client pays for his restaurant’s expenses with his Mastercard but the accountant double claimed expenses by recording the expense off of receipts AND THEN also recorded the expense again by claiming the payment to the Mastercard as food purchases.

We have documented every time we tried to get working papers or the accounting ledger.  We look forward to the day he corrects his ways and takes his profession more seriously otherwise we will work with his professional accounting board to make sure he is punished.  (We have already successfully worked with CGA to score a fine against a different Edmonton CGA who was taking client’s cheques written to CRA and making them out to herself)

Make no mistake, these people are cowards and unsophisticated criminals, cheating their customers and the federal and provincial governments. Their designation means nothing when the client signs all this paperwork that they take whole responsibility of the reported numbers.

This is what we call inflating expenses to “minimize” your taxes: fake accomplishment will bite you in the end. Putting your customers at risk by reporting bogus numbers should put you in prison.

We feel sorry for this CPA (and his victims) but need to leave his name here to save time (so we do not have to explain the taxes his former clients need to pay and for his current and potential victims). It is truly a meaningless life when you charge material amounts of money and give nothing to the client in return other than a fake accomplishment, stealing from the government and eventually hurting the client when this catches up to them.  We fired one unsuccessful client who wanted us to help her cheat, only to get a professional courtesy letter from this same CPA, birds of the same feather flock together.


Welcome to SwissBooks
  1. 1. A full ledger is provided that reconciles to your bank and credit card statements showing each accounting entry in a clean layout.
  2. THUT is committed to further extending its market position.  The basis for this is an outstanding reputation.  Clear virtues and principles determine our daily thoughts and actions.
  3. High performance is the value that represents THUT.
  4. Striving for the highest quality, uncompromising customer service, and continuous further development create the common foundation on which we act when working together.

  5. Our credibility is based on the code.  It sustainably shapes our good name with the public, and therefore also our financial success.

  6. Our promise unequivocally says what we stand for and what we deliver.  We put ourselves in our customer’ shoes.
  7. The THUT tradition of commitment – as strong today as through the 19 generations of our state documented history – continue to place the interest of whom we serve before all other considerations.  Niklaus Thut, a Habsburg overlord and now a revered Swiss hero died defending his home.  Before he was killed, he ate the flag to prevent it falling into enemy hands. We will never dishonor our family reputation which stood for over 630 years for any ill-gotten short-term gains.  We will work with you to minimize your tax obligation, preserve and protect assets for future generations.  Accounting is beautiful a series of debits and credits that must balance.  There is no such thing as bad accounting- only bad accountants.

Like all people with no value, bad CPAs should be avoided at all costs.  Join my personal vendetta against all the bad CPAs in Canada that hide behind their designations or hide behind their high fees. Their customers automatically associate authority based on the high fees they charge. Bad CPAs: please start behaving or I will continue throwing punches as usual.

Upcoming topics for bad accountants:
  1. “Investing” under $500,000 in individual stocks: inefficient waste of time. If you could beat my index fund your time is worth more working on Wall-Street.
  2. Franchises: not worth pursuing unless you are the franchisor.

We can’t be responsible for other accountants irresponsibility.  Our responsibility comes from 10 years of delivery quality, completing files on time, servicing memorably and saving our customers’ far more money in taxes than any small price difference.

Share with someone that could use some advice in this post or save some taxes
For every person, you refer we’ll give you a free month or a gift card equal to 1 month of service of your referral – whatever is bigger! Up to $600!
Anyone you refer gets a free month of bookkeeping!
THUT data capture technology extracts data from bank, credit card, and online statements and allows for automatic bank reconciliation – this renders the CPA obsolete.
THUT uses artificial intelligence to locate and extract line item and tax summary data from receipts and exports it into a CSV file.
Cleansing algorithms allow it to extracts transactional data that is 100% accurate.
Send us your prior financials and we will prove to you how our value is unrivaled in Canada.
➤➤➤
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Why Do More Edmonton-area Nail Salons Choose THUT Accounting Than Anyone Else?

Có nhân viên kiểm tra thuế (auditor) làm ở cơ quan thuế Canada Revenue Agency (CRA) báo cho văn phòng mình biết là:

  1. CRA có nguyên một đội ngủ chuyên kiểm tra lại thuế tất cả các tiệm nail trong vòng 2 năm
  2. Trong đội ngủ này CRA có nhân viên biết tiếng Việt Nam sẻ giúp kiểm tra và thông dich lại những quảng cáo của những tiệm nails đăng trên Thời Báo (Trả bao nhiêu tiền một tháng và trả ăn chia v.v..). Auditor nói CRA sẽ dùng thông tin này để tìm lại số tiền mặt mà các tiệm Nail không khai báo là bao nhiêu.
  3. CRA đã và đang cho người giả xin việc gọi đến từng tiệm Nail và hỏi có trả tiền mặt hay không để báo lên CRA.
  4. CRA đang kiểm tra lại thuế tiệm Nail là vì có nhiều người trong ngành Nail phản ảnh với CRA vụ cách thức tiệm Nail Việt trả tiên cho nhân viên cho nên họ khong thế cạnh tranh được (ví dụ như tiệm Italian va Lebanese v.v.).
  5. Mua một chiếc xe với giá trị 75% hoặc nhiều hơn số tiền thu nhập hàng năm bạn báo sẽ gây ra một cuộc kiểm toán (audit).
  6. Trong một cuộc audit CRA cũng kiểm tra xem làm thế nào bạn có thể trả tiền mortgage của bạn.

CRA có quyền:

  • Tìm hiểu thông tin từ nơi đăng ký xe (Registry Office )mình có bao nhiêu xe và xe gì
  • Lấy thông tin từ ngân hàng (cá nhân lẩn doanh ngiệp) và thông tin mortgage của chủ tiệm nail
  • Và họ lên City of Edmonton website để coi giá trị của căn nhà của bạn

Chúng tôi đề nghị tiệm Nail phải có hệ thống quản lý bán hàng (Point of Sale system) hoặc ghi lại thu nhập , xem Example – Sales Journal – Month of July hoặc liên hệ với văn phòng THUT cho một mẫu để sử dụng.  Tiệm Nail cũng cần ghi lại tiền TIP trả cho nhân viên hàng ngày bởi vì chủ tiệm nail không cần phải trả thuế và GST trên tiền TIP này.  Để biết thêm về hồ sơ thu nhập : English / Vietnamese.

Trong trường hợp nếu bạn bị kiểm tra thuế thì bạn cung cấp cho Auditor bằng báo cáo thu nhập thì bạn không có vấn đề.

Share with someone that could use some advice in this post or save some taxes
For every person you refer we’ll give you a free month or a gift card equal to 1 month of service of your referral – whatever is bigger! Up to to $600!
Anyone you refer gets a free month of bookkeeping!
THUT data capture technology extracts data from bank, credit card and online statements and allows for automatic bank reconciliation.
THUT uses artificial intelligence to locate and extract line item and tax summary data from receipts and exports it into a csv file.
Cleansing algorithms allow it to extracts transactional data that is 100% accurate.
Send us your prior financials and we will prove to you how our value is unrivaled in Canada.
➤➤➤

Self-made Multi-Millionaire Reveals 7 Swiss Secrets That Helped Him Get Rich

Foreign demand for Alberta’s natural resources contributed to our current situation.  Even THUT Accounting became too specialized in providing accounting to oil-field related businesses, leaving out the other sectors of the economy because of apathy.

Canada’s abundance of natural resources has interesting side effects. The trickle down of wealth erodes productivity and created a nation dependent on Alberta.

Adaptability and productivity stay low while increasing costs, inflation, and unemployment.

Even if you don’t work directly for the oil-sector, you may be adversely affected if:

  1. an increase in your mortgage rate would hurt your finances
  2. your mortgage is more than 2.5-4 times your gross annual household income depending on how much you put down
  3. you don’t have any real skills and think you can succeed in business

7 Swiss Tricks to 7 Figures!

The future will belong to:

  1. People who are the best at what they do through 90% doing & 10% learning.  Hone useful skills that allow you to deliver a service/product that people want and you can create opportunity regardless of the economic environment. Switzerland’s strong apprenticeship system has made it the most competitive country 7 years in a row.
  2. People with money. Strive to save 90% of your income.  Keep 90% of the above in investments and 10% cash. Don’t take this the wrong way, I don’t mean downsize your life. Instead, maximize your income so you are happy living on the other 10%. Follow metrics when buying a home.  Buy your car using metrics for yourself and not prestige for others. 12.7% of Switzerland’s population has a net worth over $1M vs. 1.4% in Canada.
  3. People who leverage technology. Online is the only path to scalability.  Switzerland has no resources but is ranked as the world’s most innovative country.

Paretoprinzip: Maximize the results by minimizing the stuff that don’t count:

  1. Don’t check your e-mail more than 3 times a day.
  2. Stop watching TV, surfing the net,  playing video games, and taking unnecessary vacations.  Make your own life great instead of engaging in escapism. The Swiss love outdoor adventure sport. Make your life so good you don’t need a vacation.  The only legitimate reason someone who is not financial independent should take a vacation is to visit family overseas.
  3. Trim your contact list – cut the complainers because chances are they already lost.

Switzerland has no natural resources, covered by inhabitable alps and can fit in between Edmonton and Calgary! Canada has 20% of the world’s fresh water but a Swiss company is the largest water brand in the world.

Share with someone that could use some advice in this post or save some taxes
For every person you refer we’ll give you a free month or a gift card equal to 1 month of service of your referral – whatever is bigger! Up to to $600!
Anyone you refer gets a free month of bookkeeping!
THUT data capture technology extracts data from bank, credit card and online statements and allows for automatic bank reconciliation.
THUT uses artificial intelligence to locate and extract line item and tax summary data from receipts and exports it into a csv file.
Cleansing algorithms allow it to extracts transactional data that is 100% accurate.
Send us your prior financials and we will prove to you how our value is unrivaled in Canada.
➤➤➤

How do I apply for a business number (BN)?

 A business number (BN) is a common identifier for businesses in their dealings with the government. Each business, whether it is a sole proprietor, partnership, corporation, trust or other organization, requires one BN for it’s legal entity. Whenever you deal with the government you must provide your BN to identify the legal entity you are referring to. Just like when you provide your social insurance number to identify yourself when you call CRA or file your personal tax returns.

There are four major program accounts:

  1. RT – Goods and Services Tax/Harmonized Sales Tax (GST/HST) (see bullets below for reporting periods available)
  2. RP – Payroll
  3. RC – Corporate Income Tax
  4. RM – Import/Export

Registering for a business number for your business can be done online and is simple. Simply forward us a copy of your incorporation documents and ask us for a “Fiscal year-end recommendation” specifically for your business.

If you are registering for a GST number:

  • If your annual taxable sales are “$1,500,000 or less” your assigned reporting period is annual. Monthly or quarterly is optional but is not recommended (please contact us if you have any questions)
  • If your annual taxable sales are” $1,500,000 up to $6,000,000″ your assigned reporting period is quarterly with monthly reporting period being optional.
  • If your annual taxable sales are “More than $6,000,000” your  assigned reporting period is monthly.

Please click here once you are ready to register your BN through the Canada Revenue Agency’s website.

Share with someone that could use some advice in this post or save some taxes
 
For every person you refer we’ll give you a free month or a gift card equal to 1 month of service of your referral – whatever is bigger! Up to to $600!
 
Anyone you refer gets a free month of bookkeeping!
 
THUT data capture technology extracts data from bank, credit card and online statements and allows for automatic bank reconciliation.
 
THUT uses artificial intelligence to locate and extract line item and tax summary data from receipts and exports it into a csv file.
 
Cleansing algorithms allow it to extracts transactional data that is 100% accurate.
 
Send us your prior financials and we will prove to you how our value is unrivaled in Canada.
 
➤➤➤

What expenses can I claim? Can I claim a home-office?

“What expenses can I claim? Can I claim a home-office? ” This is one of the most common question asked from customers starting a new business.

You can deduct any reasonable current expense that you have paid or will have to pay to earn income and you cannot deduct personal expenses. For more information click here for a link to CRA’s List of Expenses.

Share with someone that could use some advice in this post or save some taxes
For every person you refer we’ll give you a free month or a gift card equal to 1 month of service of your referral – whatever is bigger! Up to to $600!
Anyone you refer gets a free month of bookkeeping!
THUT data capture technology extracts data from bank, credit card and online statements and allows for automatic bank reconciliation.
THUT uses artificial intelligence to locate and extract line item and tax summary data from receipts and exports it into a csv file.
Cleansing algorithms allow it to extracts transactional data that is 100% accurate.
Send us your prior financials and we will prove to you how our value is unrivaled in Canada.
➤➤➤

Paying Canada Revenue Agency (CRA) / Receiver General

For safety reasons, we recommend you to pay online through your online banking system or through CRA’s My Payment system. You may also pay at the bank if you have the original payment form mailed to you from the CRA. (Instructions for CIBC online banking below)

You can use  CRA’s My Payment system if you have an online banking account at the following financial institutions that currently participate in Interac Online:

  • BMO Bank of Montreal (personal accounts only)
  • Scotiabank
  • RBC Royal Bank
  • TD Canada Trust
  • Envision Financial
  • Libro Credit Union

For detailed instructions on how to use CRA’s My Payment system please click here.



If you bank with CIBC you can pay through CIBC’s online banking.

To pay through your CIBC online banking:

  1. Log onto CIBC banking online
  2. On the left hand side of the screen click “PAY & FILE TAXES”
  3. Click the blue “CONTINUE” button on the bottom right hand side of the screen
  4. Select “ADD PAYMENT TYPE”
  5. Choose the correct payment type
  6. Click “NEXT” and enter in the information required
  7. Click “ADD THIS PAYMENT TYPE”

Once the payment type is added then whenever you click “Pay & File Taxes” select the payment type, type in the dollar amount and date of payment and follow through with the payment until you receive confirmation.

Share with someone that could use some advice in this post or save some taxes
For every person you refer we’ll give you a free month or a gift card equal to 1 month of service of your referral – whatever is bigger! Up to to $600!
Anyone you refer gets a free month of bookkeeping!
THUT data capture technology extracts data from bank, credit card and online statements and allows for automatic bank reconciliation.
THUT uses artificial intelligence to locate and extract line item and tax summary data from receipts and exports it into a csv file.
Cleansing algorithms allow it to extracts transactional data that is 100% accurate.
Send us your prior financials and we will prove to you how our value is unrivaled in Canada.
➤➤➤

CRA’s My Payment System

Yes we know it looks complicated but it doesn’t have to be! Below we list step by step instructions to use CRA’s My Payment System for paying your payroll remittances, GST, corporate income tax and individual income tax.

CRA My Payment System

To pay your Payroll Source Deductions (PD7A)

  1. Click the link above
  2. Click “START MY PAYMENT” button
  3. Click “PAYROL SOURCE DEDUCTIONS” under the “Businesses” heading
  4. Click “REGULAR REMITTANCE” if you pay monthly/ “QUARTERLY REMITTANCE” if you pay quarterly/ “BALANCE OWING REMITTANCE” if you are paying for a current/prior year outstanding balance/ “ARREARS/PENALTY/INTEREST” if you are making a payment for interest/penalties assessed
  5. Enter your account number (your company’s 9 digit business number followed by RP0001) ie. 123456789RP0001
  6. Enter all of the required information from your PD7A report you received from our office
  7. Click “NEXT”
  8. Confirm the account numbers and amounts are correct
  9. Click “CONFIRM AND PROCEED TO PAY” or select the radio button to modify payment.
  10. Click “PAY NOW”
  11. Choose your bank and enter in your banking login information and proceed to pay/confirm


To pay your Goods and Services Tax (GST/HST)

  1. Click the link above
  2. Click “START MY PAYMENT” button
  3. Click “GOODS AND SERVICES TAX/HARMONIZED SALES TAX” under the “Businesses” heading
  4. Click “PAYMENT ON FILING” after we have filed your GST return/ “INTERIM” if you are making a quarterly instalment/ “AMOUNT OWING” if you received a letter or statement from CRA / “BALANCE DUE” if you are making a payment on the remainder of tax you owe
  5. Enter your account number (your company’s 9 digit business number followed by RT0001) ie. 123456789RT0001
  6. Enter the remainder of the required information
  7. Click “NEXT”
  8. Confirm the account numbers and amounts are correct
  9. Click “CONFIRM AND PROCEED TO PAY” or select the radio button to modify payment.
  10. Click “PAY NOW”
  11. Choose your bank and enter in your banking login information and proceed to pay/confirm


To pay your Corporate Income Tax (T2) 

  1. Click the link above
  2. Click “START MY PAYMENT” button
  3. Click “CORPORATION INCOME TAX” under the “Businesses” heading
  4. Click “PAYMENT ON FILING” after we have filed your corporate tax return/ “INTERIM” if you are making a monthly instalment/ “AMOUNT OWING” if you received a letter or statement from CRA / “BALANCE DUE” if you are making a payment on the remainder of tax you owe
  5. Enter your account number (your company’s 9 digit business number followed by RC0001) ie. 123456789RC0001
  6. Enter the remainder of the required information
  7. Click “NEXT”
  8. Confirm the account numbers and amounts are correct
  9. Click “CONFIRM AND PROCEED TO PAY” or select the radio button to modify payment.
  10. Click “PAY NOW”
  11. Choose your bank and enter in your banking login information and proceed to pay/confirm


To pay your Individual Income Tax (T1) 

  1. Click the link above
  2. Click “START MY PAYMENT” button
  3. Click “INDIVIDUAL INCOME TAX” under the “Businesses” heading
  4. Click “2014 – TAX OWING” after we have filed your personal tax return/ “TAX INSTALMENTS” if you are making an instalment/ “PAST TAX OWED” if you received a letter or statement from CRA
  5. Enter your social insurance number (SIN) ie. 123456789
  6. Enter the remainder of the required information
  7. Click “NEXT”
  8. Confirm the account numbers and amounts are correct
  9. Click “CONFIRM AND PROCEED TO PAY” or select the radio button to modify payment.
  10. Click “PAY NOW”
  11. Choose your bank and enter in your banking login information and proceed to pay/confirm
Share with someone that could use some advice in this post or save some taxes
For every person you refer we’ll give you a free month or a gift card equal to 1 month of service of your referral – whatever is bigger! Up to to $600!
Anyone you refer gets a free month of bookkeeping!
THUT data capture technology extracts data from bank, credit card and online statements and allows for automatic bank reconciliation.
THUT uses artificial intelligence to locate and extract line item and tax summary data from receipts and exports it into a csv file.
Cleansing algorithms allow it to extracts transactional data that is 100% accurate.
Send us your prior financials and we will prove to you how our value is unrivaled in Canada.
➤➤➤