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Lipchitz Professional Corporation - Accountant Keswick

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At Lipchitz Professional Corporation we have been maximizing our clients' wealth and health for over 20 years. Local and experienced, we help you plan, implement, execute and integrate your personal and business financial and tax strategies.

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If you want to submit your documents online, please contact us.

Phone: 905-476-7718

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This site is still under construction.

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We are passionate about what we do and how we do it.

Auditing


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Audits and reviews of private companies and not-for-profit organizations

Personal, Corporate and Estate
Income Taxes


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Our professional team can handle tax returns of a wide range of sizes and complexity.

Bookkeeping


Fancy Orange Line

Complete bookkeeping services including financial statements, payroll, general ledger and more.
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Our COVID-19 Protocol
In the wake of this pandemic, our priority remains to provide you with our continuing services. We are following health and safety protocols in order to keep us and our clients safe.

While we fall under the category of an essential service, we currently have our office closed to the public. You can contact us using the contact form on this site or call us at the number listed below for more information on how you can send us your tax documents.

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Canada Emergency Business Account - May 20, 2020


Expanded eligibility to the Canada Emergency Business Account (CEBA)
The government today announced expanded eligibility for the CEBA.

Previously, a business had to have at $20,000-$1.5 million of salaries and wages in order to be eligible for CEBA. This excluded many small businesses that are sole proprietorships and other businesses that relied on contractors rather than employees as well as family owned corporations that paid employees through dividends rather than salaries or bonuses.

That is now expanded to include businesses previously omitted.

In order to qualify under the enhanced eligibility criteria, applicants with employee salaries and wages of less than $20,000 would require:

  1. A business operating account at a participating financial institution
  2. A CRA business number
  3. Filed a 2018 or 2019 tax return
  4. Eligible non-deferrable expenses between $40,000 and $1.5 million. Eligible non-deferrable expenses include such things as rent, property taxes, utilities, insurance, equipment lease payments, regular loan payments, etc.

Applications are submitted through the financial institution's website. As well, you should set up direct deposit to get the payment quicker and easier.

The CEBA provides loans up to $40,000 that are interest free until December 31, 2022. If $30,000 is repaid by December 31, 2022 then $10,000 (25%) of the original loan is forgiven. If you cannot pay it down to $30,000 then the loan becomes a term loan and is repaid in monthly payments of principal and interest.

Regional relief and recovery fund (RRRF)
For businesses that are located in Georgina, East Gwillimbury and Brock, applications are now being accepted through the South Lake Futures Community Futures Development Corporation. Details are now posted on their website https://southlakefutures.ca/covid-19-support/super-page.php?id=3

Funding available through South Lake Futures
In order to provide targeted assistance to the small towns and communities they serve, CFDCs will focus on assisting "main street" businesses, such as retail shops, restaurants, corner stores, and businesses of strategic importance to their communities, with loans up to $40,000.

Eligible CFDC applicants must also meet the following criteria:

  1. Established prior to March 1, 2020
  2. Impacted adversely by the COVID-19 pandemic
  3. Viable and not experiencing other financial difficulties prior to March 1, 2020
  4. Have attempted to access other federal relief supports and were ineligible, rejected, or require funding for expenses that have not been supported, with priority given to applicants who were ineligible or rejected from other federal relief supports.
  5. Please review the South Lake Futures Program Guidelines document below for information regarding eligible costs and local priorities.

Applications can be submitted for:

  • Loans of up to $40,000 to help address working capital needs.


More details to come as they are available.

Please contact me or Connie if you have any questions.


Keep safe
Joel



Regional Relief and Recovery Fund (RRRF) - May 14, 2020


Yesterday a new program was announced to assist small owner managed businesses; Regional Relief and Recovery Fund (RRRF). This program is intended to help organizations in sectors such as manufacturing, technology, tourism and others that are key to the regions and local economies. $962 million has been allocated of which $252.4 million has been allocated for Southern Ontario.

The program is administered through the 6 regional development agencies (RDA) of the Federal Economic Development Agency. For Ontario FedDev Ontario.

Businesses located within Georgina, East Gwillimbury and Brock will have the program administered through Southlake Community Corporation (SLCFDC) located in Keswick.

This amount for southern Ontario is available in two streams:

  • $213 million for SME's facing financial pressure
  • $39.4 million to provide rural businesses with access to capital and business support, delivered by southern Ontario's Community Futures Development Corporation


There is a basic guidelines summary prepared by Fed Dev which I have attached:

  1. Who Qualifies
    Eligible applicants include:
    1. Corporations or indigenous businesses located in Southern Ontario with 1 to 499 full-time employees
    2. Facing funding pressures with fixed operating costs as a result of the Covid19 pandemic
    3. Have applied to other COVID19 emergency credit relief measures for which they are eligible including: CEBA, BCAP, BDC working capital loans, other sector specific COVID19 programs
    4. Plan to continue to operate its business or resume operations
    5. And it was a viable business before COVID19.
    Ineligible applicants include:
    1. Government owned organizations
    2. Unions, charitable, religious or fraternal organizations or entities
    3. Holding companies
    4. Entities owned by individuals holding political office.
  2. Eligible Activity
    1. SME funding for fixed operating costs, where businesses have been affected by COVID19
  3. Costs Covered
    Eligible:
    Costs covered by the program may include:
    1. Capital lease payments for existing equipment and machinery
    2. Salaries and benefits
    3. Will only be considered for support if the business is not eligible or declined support from the Canada Emergency Wage Subsidy or the NRC-IRAP- Innovation Assistance Program for pre-revenue businesses
    4. Property taxes
    5. Utilities
    6. Bank charges and interest payments
    7. Professional fees
    8. Monthly insurance payments
    9. Rent
    10. Applicants are expected to pursue with their landlord access to the Canadian Emergency Commercial Rent Assistance (CECRA) for small businesses (details on CECRA will be available mid-May)
    11. Other fixed operating costs applicable to the applicant
    Not Eligible:
    1. Any costs deemed not reasonable and/or not directly related to a business' fixed operational expenses
    2. Monthly mortgage and loan payments
    3. New capital expenditures
    4. Refinancing of an existing debt
    5. Costs of amortization and goodwill
    6. Acquisition of land and buildings
  4. Priorities
    If there is significant demand for the funding available, priority may be given to SMEs that are significant employers in communities and critical industries, such as:
    1. Manufacturing - includes businesses engaged in the physical, chemical or mechanical transformation of goods, materials or substances into new products. Examples include automotive, aerospace, food and beverages, fabricated metal and machines, and chemicals and plastics
    2. Technology - includes a broad range of software, hardware, and life and environmental activities in diverse sectors such as information and communications technologies, biotech, biopharma, clean technologies, and bio-processing
    3. Tourism - includes accommodations, recreation, tour operators, and scenic and sightseeing transportation
    4. Support the government's commitment to inclusive growth (i.e., women, Indigenous peoples, youth, persons with disabilities, visible minorities, newcomers, LGBTQ2) and Official Language Minority Communities
  5. Application Process
    1. Applications for funding are accepted on an ongoing basis with no submission deadlines, until the Fund is fully committed
    2. FedDev Ontario has a single-phase RRRF application process using a single RRRF Application for Funding
    3. Refer to the Application Guide for instructions on how to complete the RRRF Application for Funding
    4. Applicants are encouraged to review the Application Guide in conjunction with these guidelines
    5. One Application for Funding per applicant is permitted. Multiple and concurrent applications from the same applicant will not be considered

There is a link in the info sheet to FedDev Ont and an application kit link.

More details to come as they are available.

Please contact me or Connie if you have any questions.


Keep safe,
Joel



Rent Subsidy Program - April 24, 2020


Prime Minister Justin Trudeau today announced a new rent subsidy program to help businesses forced to shut down due to Covid19.

What it does:

  1. Will provide non-repayable loans to commercial property owners to cover 50 percent of rent payments for April, May and June.
  2. The loans will be forgiven if the property owner agrees to cut the rent by at least 75 percent for those months and promises not to evict the tenant.
  3. The small business tenant must cover the remaining portion of the rent, which would be up to 25 percent.
  4. To qualify:
    1. Small business tenants must pay less than $50,000 a month in rent.
    2. Experienced a revenue decline of at least 70 percent from pre-COVID-19 levels, or they must have been forced to close down because of pandemic restrictions.
    3. Non-profit and charitable organizations are also eligible.

More details to come as they are available.

Please contact me or Connie if you have any questions.


Keep safe,
Joel



Canada Emergency Wage Subsidy (CEWS) - April 24, 2020


Hi all,

We had prepared an excel spreadsheet for the wage subsidy which we intended to share with our clients and friends; however, CRA has now prepared a wage subsidy calculator. It makes sense to use the official calculator. Here is the link

https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy.html

The first day to apply is April 27th. If you need assistance please contact Connie or myself. My understanding is that we will be able to prepare and submit the application on your behalf through our representative account for anyone that would like us to do that.


Keep safe,
Joel



Canada Emergenceny Student Benefit (CEBS) - April 22, 2020


Trudeau announced the government will spend $9 billion fund to help post-secondary student and recent graduates in Canada. The fund, called the Canada Emergency Student Benefit, will provide support to students who are not eligible for the Canada Emergency Response Benefit.

A press release from the government said it will provide $1,250 per month for eligible students or $1,750 per month for eligible students who have dependents or disabilities. This benefit will be available from May to August 2020, the release noted. He indicated that payments will be delivered through the Canada Revenue Agency and will be working with the opposition to move the legislation to put the benefit in place.

The government also announced it is creating 76,000 jobs for young people in addition to the Canada Summer Jobs program, Trudeau said. The $9 billion fund will also include $291 million to extend scholarships, fellowships and grants to ensure student researchers and graduate students are able to continue their work, he said. For those students who are volunteering in the "fight against COVID-19", Trudeau said they will soon be eligible for $1,000 to $5,000, depending on their hours, through the new Canada Student Service Grant. The fund also includes $75 million to increase support specifically for First Nations, Inuit, and Metis Nation students.

More details to come as they are provided.

Please contact myself or Connie if you have any questions or would like our assistance.


Stay safe,
Joel



Canada Emergency Wage Subsidy (CEWS) - April 21, 2020


Federal government has announced that the applications for the CEWS will be open April 27, 2020.

  1. You may apply using CRA My Business Account portal.
  2. We will be able to assist you through our Represent a Client access portal (which we could not do for previous benefits).
  3. Alternatively, you will be able to apply using a separate online application form (available April 27).
  4. This subsidy is payroll based only; subcontractor or self-employed earnings are not eligible. Accordingly, you will have to file a separate application for each RP (payroll) account if you have more than 1 business.


    To get prepared you should:

  5. Register now for CRA's My Business Account if you are not already signed up. This will ensure that you can apply as soon as applications open.
  6. If you are unable to register for My Business Account, make sure you have an online web access code so you are prepared to use the alternative application.
  7. Ensure that your business details and direct deposit information for your payroll accounts (RP) are up to date. This will ensure that any payments to you will be processed quickly and easily.
  8. We have prepared an excel spreadsheet as a tool you can use to calculate your subsidy. Please send email if you would like a copy.


    What the subsidy is:

  9. The subsidy generally covers 75% of an employee's wages - up to $847 per week.
  10. Employers of all sizes and across all sectors are eligible.
  11. You must have suffered a decrease in gross revenues of at least 15% in March, and 30% in April and May.
  12. Businesses can elect to use the "cash basis" or "accrual method" for assessing the drop in revenue. Accordingly, your if sales have not gone down, but your collection of payments has dropped below these thresholds (in a month over month comparison), you may still qualify.
  13. You may also use an average of January and February 2019 as your benchmark to determine if you qualify in March 2020.
  14. Once you qualify, you will be eligible for subsequent periods even if your sales did not decrease in the subsequent period.
  15. The program covers the 12-week period, from March 15 to June 6, 2020. It will apply retroactively to March 15, 2020.
  16. Employers who are eligible for the CEWS are entitled to receive a 100% refund for certain employer contributions to Employment Insurance, the Canada Pension Plan, the Quebec Pension Plan, and the Quebec Parental Insurance Plan paid in respect of employees who are on leave with pay.
  17. For employers that are eligible for both the CEWS and the 10% Temporary Wage Subsidy for a period, any benefit from the 10% Temporary Wage Subsidy for remuneration paid in a specific period will be deducted from the amount available to be claimed under the CEWS in that same period.


CEBA and Canada Emergency Commercial Rent Assistance - April 16, 2020


Canada Emergency Business Account
The Canada Emergency Business Account was created to provide interest-free loans of up to $40k to small businesses and not-for-profits, to help cover their operating costs during a period where their revenues have been temporarily reduced. Previously, to qualify the employer entity had to have 2019 total payroll of $50,000-$1,500,000. Trudeau just announced the criteria would be modified so businesses that paid $20,000 to $1.5-million in payroll will now be eligible.

Canada Emergency Commercial Rent Assistance
Trudeau also just announced a new Canada Emergency Commercial Rent Assistance program, which will be created to help small businesses with rent in April, May and June. The federal government will be working with the provinces and territories to introduce this program since managing rent is in the provinces jurisdiction.

No further details are currently available at this time.

Please contact myself or Connie if you have any questions or would like our assistance.

Joel Lipchitz



Canada Emergency Wage Subsidy (CEWS) - April 15, 2020


The legislation for this program received Royal Assent on April 11, 2020. Accordingly, we have more details.

  1. Eligible entities (employers)
    1. Individuals, taxable corporations, partnerships consisting of eligible entities, NPO's and registered charities. Employers qualify regardless of their size and sector, except pubic bodies.
    2. To qualify eligible entities must see a decline in revenues of at least 15% in March 2020, and at least 30% in April 2020 and May 2020.
    3. Revenues defined for the calculation include revenues earned in Canada from arm's length transactions, calculated using the employers normal accounting method.
    4. Employers elect to use either the accrual or cash method of accounting but not the 2 methods combined.
    5. Once the method is elected it must be applied to CEWS for the duration of the program.
    6. Charities and NPO's may elect to include or exclude revenue from government funding in their calculation.
    7. The benchmark for the revenue test may be either to compare their revenue for March, April and May 2020 to either a) the same months in 2019 or b) an average of revenue in January and February 2020. Once the benchmark is selected, it must be applied for the duration of the program.
    8. Start-ups may adjust their revenue for Januarys and February 2020 during this period.
    9. CEWS proceeds are excluded from the revenue test calculation.
    10. Once an employer is found to be eligible for a specific period, the employer will automatically qualify for the next period. This allows the entity to recover without losing the subsidy.
  2. Department of Finance Table produced a table to summarize the remuneration claiming periods, required reduction in revenue for that period and the reference period used to determine if the revenue test is met:

    Period 1 - Claim period: March 15 to April 11
    15% decline in revenue (minimum) - March 2020 compared to either March 2019 or average of January and February 2020.

    Period 2 - Claim period: April 12 to May 9
    30% decline in revenue (minimum) - Eligible for period 1 or March 2020 compared to either March 2019 or average of January and February 2020.

    Period 3 - Claim period: May 9 to June 6
    30% decline in revenue (minimum) - Eligible for period 2 or March 2020 compared to either March 2019 or average of January and February 2020.
  3. Corporate groups may calculate a group of affiliated entities to calculate consolidated revenues and then each eligible entity in that group can use the consolidated amounts for the purpose of the revenue test. This helps eliminate issues where revenue generation and payroll functions do not coordinate properly.
  4. Where all or substantially all of an eligible entity's qualifying revenue is from non-arm's length entities, the entity may determine its revenue decline based on arms' s length transactions.
  5. The amount of the subsidy for an eligible employee on eligible remuneration paid between March 15, 2020 and June 6, 2020 is the greater of:

    1. 75% of the amount of remuneration paid, up to a maximum of $847/week and
    2. Amount of remuneration paid, up to a maximum benefit of $847 per week or 75% of the employee's baseline remuneration, whichever is less.
  6. Eligible remuneration includes salary, wages and other remuneration like taxable benefits paid to an eligible employee. It does not include items like severance pay or stock options benefits. How irregular payments, such as bonuses or commissions, will be adjusted for is still unclear. In addition, it should be noted that the rules limit the subsidy that may be claimed where an individual is employed by multiple non-arm's length employers.
  7. Baseline remuneration is essentially the employee's pre-crisis remuneration and is the average weekly remuneration paid to the employee between January 1 and March 15, excluding any seven-day periods for which the employee was not paid.
  8. There is no cap on the amount of CEWS an employer can claim. The government has asked employers to do their best to top up employee's salaries and bring them to pre-crisis wage levels. No guidance has been provided at this time on how the government will measure best efforts or what the consequences would be for those who don't make them.
  9. The subsidy for Non-arm's length employees subsidy is limited to eligible remuneration paid in any pay period between March 15 and June 6, 2020 to the least of:

    1. $847 per week
    2. 75 percent of the employee's baseline remuneration
    3. The amount of eligible remuneration paid to the eligible employee for that week
  10. Non-arm's length employees must be employed prior to March 15, 2020. Dividends or no remuneration paid during the base line period (January 1 to March 15, 2020) are not included in the eligibility calculation.
  11. CPP, EI are deducted but for eligible employees who are on paid leave, the premiums are 100% refundable at the time the employer applies for CEWS.
  12. Eligible entities can apply for CEWS through the CRA "My Business Account" portal or a web-based application in development.
  13. Employers that do not meet the eligibility requirements have to repay amounts received under CEWS.
  14. Subsidy will be taxable.
  15. More details with respect to compliance will be released shortly.
  16. Penalties for fraudulent claims are severe and will include fines and possible imprisonment. Artificial transactions to reduce revenue for the purpose of claiming CEWS may be subject to a penalty of 25% of the value of the subsidy claimed in addition to full repayment of the full subsidy. There are also anti-avoidance rules that prevent manipulation of the CEWS computation.
  17. The government may also publicly disclose the names of any employer who applies for the CEWS.
  18. The Temporary Wage subsidy is available but any amounts received under that program or the work-sharing program will reduce the CEWS benefit.

Please contact myself or Connie if you have any questions or would like our assistance.


Stay safe,
Joel Lipchitz