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MP Accounting Service now accepts Visa & Mastercard

We are pleased to announce that we are now set up to take visa and mastercard. We will also be able to take debit cards during the tax season of March and April only.

PST is returning April 1, 2013

BC is returning to the PST on April 1st.  From then on, most businesses will charge 5% GST and 7% PST.  The PST system will have all the same exemptions as it had prior to the HST.  What this means is that you will have to pay PST on almost all goods purchased, but most services will be exempt.  One of the biggest changes from the HST is that restaurant meals will be exempt from PST.  For more information on how this switch back to the PST will affect you both personally and professionally or to find out how to register your business, please contact us.

Disability tax credits

Disability tax credits are available to anyone who has difficulties performing everyday functions of life.  For 2011, the tax credit is $7,341.  Everyday functions of life include blindness, life sustaining therapy, restritions in speaking, hearing, walking, bowel or bladder elimination, feeding, dressing or mental functions.  The restriction must last a minimum of 12 months.

To apply, take the CRA form T2201 disability tax certificate to your doctor to fill out and then send it in to the CRA for approval.

The tax credit can be transferred from a spouse or dependent if their income is not high enough to be able to use it themselves.

File your income tax on time

Many taxpayers don’t bother with filing their tax return because they owe money and can’t afford to pay it. This just compounds their problem. If a tax return is not filed on time, for a first time offender, the CRA will charge a penalty of 5% of any tax owing as soon as the return is late, plus an additional 1% for each full month after that up to a maximum of 12 months.

If they are late for a second time within 4 years, the penalties double to 10% of the tax owing plus 2% per month. Interest will also accrue on the penalties as well as the tax owing. If you owed $5,000 in taxes and were a full year late in filing your return, the penalties would amount to $850.

If you failed to file for a second time in 4 years, with the same amount owing your penalties would increase to $1,700.

If you don’t file on time and you don’t owe any money, then there is no penalty. However, if you qualify for programs such as the GST / HST credit, child tax benefit, or subsidies on your medical premiums, you will not receive any of these until such time as you file a return.