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At Gilmour Group CPAs, we think differently. Those of you that know us well, know that we are not your typical accounting firm. At this year’s retreat we asked how are we different and why do we do what we do?

Following the theme that Tax is science, we believe that knowledge is power and we recognize that our clients can and do change the world. We strive to coach them and come along side them to bridge the gap by sharing knowledge to build success.

In this FAQ series on formulas for success, we intend to do just that.

At Gilmour Group CPAs, we believe that the formula for success is passion multiplied by knowledge squared. Or for us math types:

Einstein

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Gilmour group CPAs

TAX GAMES - find the answers from the TGIF posts on LinkedIn and Twitter

04
OCT
2019

Which is Higher – Personal Tax Rates or Corporate Tax Rates?

Personal tax rates. Personal tax rates are designed to be higher because there are so many more people than there are companies and thus the “tax base” is larger. Also a large tax base is less...
06
SEP
2019

What is the Best Year End for a Business? A Calendar Year?

Once again it depends. Each year end has its merits. Here is a list of year ends with commentary on how it would work in a Canadian company with Canadian filings deadlines.
30
AUG
2019

Can We Go to a Spa and Deduct our Spa Expenses?

This fits many of the same rules as we covered on July 5th and also in our "FAQ for tax-savvy taxpayers, issue #294". Take Grant Gilmour to the spa and you can talk about it!
23
AUG
2019

Can We Go Fishing and Deduct our Fishing Expenses?

The same sub section we discussed last week that denied deduction of golf 18(1) (l) also applies to "lodges". This includes fishing lodges. Take Grant Gilmour fishing around BC and you can talk...
16
AUG
2019

Can We Go Golfing and Deduct our Golf Expenses?

Subsection 18(1)(l) denies the deduction for the use a "golf course". Take Grant Gilmour golfing in Langley, BC, and you can talk about it!
09
AUG
2019

Are Transfer Payments Between Canadian Federal and Provincial Governments a Way of Matching Taxes Received to the Province they are Received in and Belong to?

Transfer payments are also called equalizaton payments. They are not used to equalize taxes received to the provinces where the taxes relate to.
02
AUG
2019

When you Pay Income Taxes, Does it all Go to the Federal Government?

No, most of the time. In Canada the Federal Government and Provincial governments have unified income tax payments in most of the provinces.
26
JUL
2019

Are Gambling Expenses Deductible?

In Canada, no, they are not unless you are in the business of being a professional poker or similar game player. On the flip side, the winnings are not taxable.
19
JUL
2019

Does VAT stand for Very Annoying Tax?

No, it might be annoying but it is actually Value Added Tax. Many countries in the world have value-added taxes such as the United Kingdom.
12
JUL
2019

Is a Remittance Tax System the Same as an Accrual Tax System?

No, an accrual tax system is what most of us are familiar with. For example, Canada is accrual-based, China is remittance-based.
05
JUL
2019

Can a Vacation be Tax Deductible?

A qualified yes - the vacation must happen as a result of something deductible.
28
JUN
2019

Do Fireworks Have Taxes?

Yes, some jurisdictions have special taxes only on fireworks.
21
JUN
2019

June Solstice – Does this Impact our Taxes?

(a) Yes. (b) No. (a) Yes. Not surprisingly taxes are collected on an annual system in the modern world. This has links back to the agrarian economy in that things like paperwork and taxes were...
14
JUN
2019

Is a Father Allowed to get Tax Benefits for Children?

(a) Yes. (b) No. (a) Yes. Unfortunately, this question rarely comes up with married couples but comes up again and again with divorced and separated couples. The default socially and seemingly in...
07
JUN
2019

Is there a Tax Advantage of Being a Farmer?

(a) Yes. (b) No. (a) Yes. Being a farmer, in my opinion, means you are doing something “real” for our economy. Real means taxes. In comparison, my profession moves around a lot of...
31
MAY
2019

Should you Save your Receipts?

(a) Yes. (b) No. (c) A resounding yes. There are two categories of receipts in our world as tax advisors: Ones that are being deducted or claimed on a tax filing; and Ones that are not. It is...
24
MAY
2019

Are there any Tax Savings when you are Retirement Age?

(a) Yes. (b) No. (c) Yes. There are tax savings when you reach retirement age (65) in Canada. However, there are also hidden increases in taxation at that age as well. The savings are clear on...
17
MAY
2019

Does the Queen of England Pay Taxes?

(a) Yes. (b) No. (c) No. The queen is not liable for taxes but makes payments voluntarily in Lieu of taxes. See Wikipedia » Taxation The Crown has a legal tax-exempt status because certain acts...
10
MAY
2019

Mother’s Day – Where does it make the most Tax Benefit to have Children?

Across Canada each province and the federal government provide tax credits. Which credits are the highest? (a) BC. (b) Ontario. (c) Quebec. (c) Quebec. This question seems straight forward but is...
03
MAY
2019

So you Missed the Tax Deadline! Do you Panic?

(a) Yes. (b) No. (a) No, do not panic. That is never a good idea. However it is important to know your options. Tactics can make a huge difference when you have missed a deadline. Let me give you...
26
APR
2019

Is Having an iPhone a Tax Benefit or Cost?

(a) Benefit. (b) Cost. (a) It is a taxable benefit in Canada. What does that mean? A taxable benefit is part of your total remuneration package that is not provided in cash money. Examples are...
19
APR
2019

Do Churches Pay Taxes or do they Collect Taxes?

(a) Yes. (b) No. (a) Yes to both in some countries. However the tax is usually charged to people who attend church (see Wikipedia for a list). On the other side where churches can’t or...
12
APR
2019

What Country will Prince Harry’s and Meghan Markle’s Child Pay Taxes in?

(a) UK. (b) Canada. (c) USA. (d) Other. (a) UK and (b) USA. I put Canada on the list for fun. Listing the UK is obvious but also an assumption. We assume that the child will be born in the UK,...
05
APR
2019

Do Veterans get any Tax Breaks?

(a) Yes. (b) No. Before I answer the question, why did I ask it today? I asked it today because April 9th is Vimy Ridge Day. In Canada, Vimy Ridge Day is a point of National Pride because it is...
26
MAR
2019

Are There Any New Taxes on April Fool’s Day?

(a) Yes. (b) No. (a) Yes. Matter of fact our law makers have introduced several new taxes on April Fool’s Day over the years. My favorite is the Harmonized Sales Tax in my home province...
22
MAR
2019

Is a Tax Deadline really a Tax Deadline or can you Get an Extension?

(a) Yes, you can get an extension. (b) No, you can not get an extension. (a) Yes. Many countries allow extensions to tax deadlines. But many do not. This question opens up a more...
15
MAR
2019

How do Snow Days Affect Taxes? Can They Save Taxes?

(a) Yes? (b) No? (a) Yes. Ok I really had to stretch for this question. I was going to post it in the winter but we had yet another Snow Day. For those that don’t know, a “Snow...
08
MAR
2019

Do the Irish Really Pay Less Tax? We Hear That Tax Rates in Ireland are Very Low

(a) Yes, they are low (b) No, that is just an urban myth. (a) Yes. The corporate tax rate for corporations engaged in active business (what they call trading income in Ireland) is lower than the...
15
FEB
2019

Is Coffee at the Office Tax Deductible?

(a) Yes (b) No? Yes. It is deductible in Canada to the employer as a deductible benefit to employees. This brings up another question? If the benefit of having coffee available to you at the...
08
FEB
2019

Are Chocolates for your Sweetheart Deductible?

(a) Yes (b) No? (b) No. Your sweetheart is not a business expense. This helps open the discussion though of the line between personal activities and business activities. In future issues we will...
25
JAN
2019

If I leave Canada for Six Months (183 days) can I Stop Paying Canadian Income Taxes?

(a) Yes (b) No? (b) No. This question could have been asked many different ways. “How long can I be out of Canada and not give up my Canadian tax status?” Or the opposite question,...
18
JAN
2019

Was the Engagement of Meghan Markle to Prince Harry a Taxable Event??

Not many people realize that when they get married or divorced until after they are married or divorced that there is a possible tax? Looking earlier than that is getting engaged taxable? A) Yes,...
11
JAN
2019

When Does it Make the Most Tax Advantage to Purchase an Asset?

(a) Beginning of the year or (b) end of the year? (a) The answer used to be B: because of the half year rule that places an asset purchase date half way through the year. This means that when an...
04
JAN
2019

What Resets to Zero Every New Year? CPP or EI?

This is a trick question. Both of these “taxes” reset to zero every calendar year. This means that you start the calculations again each January 1. The result is that often early in the year t...
28
DEC
2018

When is the Best Time to be Born for Tax Purposes?

(a) Before midnight on New Year’s Eve? or (b) after midnight on New Year’s Day? (a) Before midnight. Tax deductions and credits are often allowed for a full year when an event happens...
21
DEC
2018

If Santa Claus had to Pay Income Tax, Where Would he Pay it?

(a) Canada or (b) USA? USA. Assuming that Santa Claus lives at the North Magnetic Pole. The North Magnetic Pole (according to Wikipedia) was in Canada until 2017 and then moved towards Russia,...
14
DEC
2018

Are Christmas Presents a Deductible Expense?

Yes, if they fit within the narrow definition provided by the Canada Revenue Agency. Tax rules are often “yes” “but”. Look for “holiday season”, the politically-neutral government expression for...
07
DEC
2018

Is there a Tax Advantage to Living in the Great White North?

Yes. There is a northern residents tax deduction for those folks who only see the sun for six hours a day at this time of year. No sunshine is no fun. Visit Canada.ca

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FAQs

31
JUL
2018

Formula for Success FAQ #7 : Simple vs Easy

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What is the difference between “SIMPLE” and “EASY”?
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26
JUN
2018

Formula for Success FAQ #6 : Being Late vs Wrong

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How can being late be more costly than being wrong?
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29
MAY
2018

Formula for Success FAQ #5 : Can Tax Really be Avoided?

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What do they mean when they say avoid tax? Can it really be avoided or is tax just a zero sum...
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