The recent 2006 Federal Budget announced that, effective July 1st, 2006, the goods and services tax (GST) will drop from seven percent to six per cent.
These are some areas that might affect your business:
Excerpt from CFIB article April 2006:
-Do you have cash registers to update?
-Will you have to update your accounting program?
-Do you have to adjust your tax inclusive pricing?
-Will you have to update catalogues or price lists?
-What about web/online payment software?
-Do you have to change taxable benefit calculations?
-Will you require new methods to calculate your input tax credits?
-Adjust your pre-authorized payment transactions?

Some other Budget changes for businesses:
• Corporate income tax rates will drop, the general rate falling from 21 per cent to 19 per cent by 2010 and the small business tax rate dropping from 12 per cent to 11.5 per cent in 2008 and 11 per cent in 2009.
• Small businesses can now earn $400,000 in income instead of just $300,000 before the higher general rate will apply.
• A new tax credit of up to $2,000 is planned for companies that hire apprentices.
• The corporate surtax for all corporations will disappear as of Jan. 1, 2008.
• The federal capital tax has been eliminated, effective Jan. 1, 2006.

Please contact our office for more information regarding changes that may affect your business.

Full article from:
Canadian Federation of Independent Business
Doug Bruce, Director of Research
Lucie Charron, Policy Analyst

Click here for full CFIB article

Vacations - Child Care - Who's Minding the Store?
The lazy, hazy days of summer are nearly upon us. Summer should be a time of fun, relaxation, and vacation time. However, for many business owner's, summer is a time of high stress. A business owner will often need to worry about and manage a vacation for themselves (or not), vacations for staff members, and child care throughout the summer months. These situations can impact your stress levels, and also your bottom line.
VACATIONS
It's a sad fact that many business owners won't be taking a vacation this year. Even many small business owners who are planning a break in coming months won’t truly get away. One of every three will link their vacation time to a business trip and half plan to check in with the office at least once a day while 20% will be calling several times a day.
Taking a vacation is critical to avoiding burnout and to maintaining the fresh perspective business owners need to keep managing everything they have on their plate. Treat time off like any other business necessity. Experts say: schedule it and don't cancel. At the very least tack on vacation days to business trips or plan 3-day weekends. Everyone needs time to relax and recharge, so choose a time for your vacation and just do it! Your business will benefit from having a rested and restored business owner.
CHILD CARE
Child care is another potential area for summer stress to the business owner. You still have a business to run, but of course, you have to provide proper care for your child(ren). Summer camp is something that many parents use for summer child care. As well as providing a fun and safe environment for your child (ren), summer camp is also a potential child care deduction. Sports and other camp programs that provide the opportunity for the supporting parent(s) to continue to earn income are usually allowed as deductions. If the camp satisfies the guardianship, protection and child care criteria, then most likely the expenses will be allowed. Be sure to clarify this with the camp before registering the child. If the sports camp is for older children and is more goals oriented, the Canada Revenue Agency’s position is that amounts paid are more of the nature of educational or training costs and are not child care. There are additional limits for boarding schools and overnight camps as well. The maximum deduction is $175 per week for a child under 7 years of age and $100 per week per older child. Be sure to request a receipt from the individual or organization who received the payments. When the child care services are provided by an individual, you will also need the caregiver’s social insurance number.
Where there is another supporting person, the basic rule of thumb is that the parent with the lower net income is the taxpayer who is allowed to use the deduction. This is often frustrating for couples where one is a stay-at-home parent without earned income since the deduction is limited to two-thirds of that person’s earned income. In this situation, the higher-income taxpayer is not entitled to receive the benefit of the child care expense deduction unless there are special circumstances.
WHO'S MINDING THE STORE?
Here is the list of top concerns, according to an Amex survey, that prevent most entrepreneurs from taking a well deserved vacation:
• An important client or customer will not receive appropriate service.
• The business will miss out on a new opportunity.
• There is no other competent person to leave in charge.
• The individuals left in charge will make the wrong decisions.
• An operational or equipment breakdown will occur without anyone to solve the problem.
There is no such thing as a worry-free vacation for the business owner, however here are some things you can do to help move in the right direction.
• Plan well in advance. This will allow you to anticipate and manage any challenges.
• Inform your clients about your vacation plans. Don’t apologize, but make sure they know if and when you will be closed or who they will need to deal with in your absence.
• Learn to delegate. The more you can delegate all year long, the better prepared your staff and clients will be to manage while you’re gone.
• Take mini-vacations. If you truly can’t manage a long vacation, at least take some mini-vacations or long week-ends so you can recharge.
• Keep your priorities straight. Most people really do want balance in their life. Time spent with family, friends, and on your own interests should be balanced with time spent on your business.

Link to the book on Amazon.ca

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