July 2008
It Is Better To Receipt, Than To Give (Without One)
“In levying taxes and in shearing sheep, it is well to stop when you get down to the skin. ” - Austin O’Malley
For tax purposes a “receipt” is a document which confirms a payment to a third party. Whether the payment reflected in the receipt will be deductible will depend on the particular circumstances.
Income Tax
Generally a taxpayer’s income from a business or property will be the taxpayer’s “profit” for a tax year: Income Tax Act, 9(1). Conversely, taxpayers with employment income may only deduct such amounts as are expressly allowed: 8(1) ITA.
“Profit” is not a defined term and the Income Tax Act (“ITA”) provides no specific rules for its computation: Canderel Ltd. v. Canada, [1998] 1 S.C.R. 147 per Iacobucci at 34 (referring to Friesen v. Canada, [1995] 3 S.C.R. 103 per Major at 41).
The determination of “profit” under s. 9(1) ITA is a question of law. It will be determined in accordance with “well-accepted principles of business (or accounting) practice” except where those principles conflict with the specific provisions of the ITA (Canderel, above.)
Books And Records
Every person who carries on a business shall be required to “keep records and books of account” at their place of business or residence “in such form and containing such information as will enable the taxes payable under this Act… to be determined“: 230(1) ITA.
Filing Returns
Individual taxpayers must file income tax returns, when they owes taxes in a tax year: 150(1) ITA; they have to estimate the amount of the taxes they: 151 ITA; remit those taxes:156(1) ITA; and it will then be up to the Minister of National Revenue (“MNR” but in practice it means Canada Revenue Agency (“CRA”)) to assess the tax for the year.
Accordingly the taxpayer files their T1 return, by April 30: 150(1)(d) ITA; and they purport to deduct their business expenses.
Best Practices
The Guide for Canadian Small Business (RC4070E Rev. 01; chapter 6) suggest that taxpayers’ “should keep a day-to-day record of [their] receipts and expenses. A book with columns and separate pages for income and expenses is good for this. [They should k]eep this record along with [their] duplicate deposit slips, bank statements, cancelled cheques, and receipts. This will support [their] expenditure claims.”
Consequently, it is the best practice is for a taxpayer claiming a deduction to have third party receipts fully supporting all of their deductions; but, is it the only practice?
An Exception
Between 1990 to 1992 Anthony Merchant claimed a number of deductions, some of which were “without any supporting document-ation“: Merchant v. The Queen, [1998] 3 CTC 2505 per Bowman, J.T.C.C. 22.
“It is my view that there is no requirement in law that expenses be supported by receipts or other corroboration if such expenses can be supported by credible viva voce testimony and the amounts can be identified with a reasonable degree of specificity (Weinberger v. M.N.R., 64 DTC 5060)… Failure to keep books and records carries its own sanction [i.e., 238(1) ITA] but had Parliament intended that sanction to include non-deductibility of expenses it would have been quite capable of saying so” (Ibid, 23) [Emphasis added].
Generally speaking, the ITA is to be literally applied; e.g., Fayle v. The Queen (2005-01-12) Tax Court of Canada.
Deductions
It is possible to deduct expenses that are not fully supported by receipts. In practice, taxpayer’s don’t file their receipts with their return so if the MNR (i.e., CRA) doesn’t challenge their deduction, as claimed, through a reassessment they actually have the benefit if the deduction, without the receipt, but ‘possible’ does not equate to probable – or even likely.
Reassessment
In most cases were the CRA does reassess a taxpayer to disallow their deduction of business expenses, or some of them, it will have reasons for doing so. Whether CRA’s reasons will be accepted will be binding on the taxpayer will be determined through Objections: 165(1) ITA; and/or the appeal process: Ludco Enterprises Ltd. v. Canada, [2001] 2 S.C.R. 1082; and Singleton v. Canada, [2001] 2 S.C.R. 1046.
Lessons Learned
In Mr. Merchant’s case, he was only partially successful, “[a] number of the other items listed… lack the degree of specificity as to the purpose of the expenditures” and to the extent the evidence found the evidence unconvincing, the Court declined to interfere with the assessor’s decision (Op. Cit., 24).
It is useful to remember that as the taxpayer is objecting, or appealing, they have the onus of establishing that CRA’s position is wrong, either in law, on the facts or both.
In Mr. Merchant’s case, although he was successful and ordinarily might have expected an award of costs, Justice Bowman took the extraordinary step of awarding costs against Mr. Merchant, to the losing party – and he did so on a solicitor and client basis (Ibid. , 61) in part, because:
• of Mr. Merchant’s distain for the Court (Ibid. , 56);
• his “reprehensible, scandalous or outrageous conduct” (Ibid., 58 relying on Young v. Young, [1993] 4 S.C.R. 3 per McLachlin J. at p. 134; and
• he deliberately frustrated the audit and objection process by bringing matters before the court that shouldn’t have been there. (Ibid. , 59).
A Better Way
The regrettably part of Justice Bowman’s decision, is his reference to the need for “viva voce testimony” to establish payments, absent receipts. Viva voce (Latin for living voice) statements, are given in Court, under oath, and just being in Court is undesirable for a taxpayer because they could be back running their business.
The moral of the story is that taxpayers who don’t intend to give money out of their after-tax income to third parties should get (and keep) receipts.
Staff Writer
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http://www.taxevasionresources.com
Remove Some of the CO2 of your Trip by Travelling by Train
Trains are something that UK people think of as straightforward and very quick to be on, there’s no issues checking in, having to wait to grab your luggage and going through long security checks when you are trying to get to St Tropez. It is simply great. So you simply go into the rail station, discover your train platform and then you’re away.
Trains are also reasonably co2 friendly kinds of general public transport. This is because public transport might well hold large amounts of people at any one time. By travelling so many passangers compared to the enormous number of automobiles it would require to drive them all, the co2 is much less overall. Trains are marvellous compared to automobiles.
It is consistently going to be necessary to get from this country to the next by whichever modes of transport are likely and if this requires travelling on a train since it has a tinier carbon footprint than an aeroplane, then this is a tremendous choice to pick, some may say its a lovely choice. So it is possible to enjoy a break by train and actually be environmentally friendly. These days it is attainable to go by public transportation to the majority of countries in Europe including Germany. Find out why train holidays are so good for the environment, Click Here.
So if you wish to keep your greenhouse gases to a minimum, there’s no contest, going by train is astonishing compared to by car. Going by rail is a pretty eco means of travel, and it is dead straightforward to stay safe on a public train if folk use common sense. The next time you yourself wish to travel, see if you yourself might well use a train or another sort of public transportation to cut down on fuel emissions. A little research has found that flying between Edinburgh, Barcelona, and Belgium creates over 10 times more pollution than transporting by the public transport, surely this is reason enough to travel by public transportation, when train travellers are able to.
Using the public transport for family holidays is a marvellous way to lower your carbon emissions, and you yourself may wish to bring that same green thinking towards your work commute to your place of work. Although going by public transport has become more accepted in the last 2 years, there is however an enormous % of people that take their car to their work establishment.
Do Not Despise Your Ideas
Have you ever had an idea that you didn’t do anything about,
only to later discover that someone else had used your idea
to make a fortune (even though you never shared your idea with
anyone?). How did you feel?
Happened to me once. One of my hobbies is music: I write songs,
sing and play the piano.
One day many years ago, a tune occured to me. Normally when this
happens I record the tune and polish it up afterwards. For some
reason though, I didn’t do so at this time. I didn’t do anything
with that idea. A few months down the line, I heard ‘my’ song
on the radio! Someone had written the music that occured to me,
taken it to a studio, got it recorded and made a hit out of it!
Coincidence? Actually, no. There are no coincidences – every
thing that happens, happens with precision according to set rules
and laws that govern the world we live in (The Universal Laws).
So how do we explain such phenomena?
Quite simply: God is in you. God is around you. His very breath
is in you right now. You live, move and have your being in Him.
He is the so-called Energy field or ether that you’ve read about.
He is a Spirit.
He desires to express Himself through you.
That is what metaphysicists mean when they say there is one Mind
from which all thoughts and ideas flow.
God desires to express Himself, and continues to seek a willing
vessel to use for that purpose because you see, God WILL express
Himself one way or another. When you get desires or ideas
that are good (or great even), when you get brilliant thoughts or
possible solutions to problems occur to you, during those times
of inspiration, it is God in you seeking expression.
If you don’t act on those ideas, He will find someone willing to
let Him express Himself through them. When that happens and that
person prospers as a result (when you allow God to express Himself
through you, the result reflects Him – abundance, prosperity,
beauty, holiness, health – perfection), you regret not taking
action when it occured to you.
Why do we not act on some brilliant ideas we have?
Because we tend to look down on our thoughts, simply because they
are ours. But let someone else express the same thing and you
marvel at how brilliant they are. Sometimes the gravity of the
idea seems daunting and we get discouraged or scared to act on
them. Because we sometimes feel our ideas are not worth leaving
our minds, as we fear ridicule.
Do you know what a genius is? A genius is someone who has listened
to that inner prompting and *acted on it*, regardless on what society
thinks or says. The genius doesn’t like to be ridiculed but he
doesn’t let that stop him from acting on his idea.
Handel wrote the entire ‘Messiah’ in 3 days. If you are familiar
with any of the pieces in Handel’s Messiah, you know that this
was a work of pure genius.
Yet I tell you today that you too, have genius within you.
Do not be afraid to unleash your inner genius. When you receive
great thoughts and ideas, don’t despise them because they’re from
‘little old you’. Do not belittle your ideas, for in truth they
are not yours – you’re simply a vessel for God to express Himself
through. If He gives you an idea, recognize the source of the
idea and let that awareness give you the boldness you need to
step out and take action.
If you desire a financial breakthrough, for instance, rather than
looking outside for your solution, act on the ideas that occur to
you. Don’t think you have any ideas? Then ask yourself good
questions like ‘How can I attract $….today in ways that greatly
benefit everyone concerned?’, and write down all the answers that
occur to you. Look through your list and act on the ones you
feel drawn to the most.
Because you are part of the Universal Mind, great ideas are
all around you and within you. There is no shortage of ideas or
thoughts in the universe. That’s why sometimes, things ‘occur
to you.’
From now on, *act* on those ideas. Every great invention started
as an idea. Someone got bold and acted on their idea, no matter
how radical or unconventional it seemed at the time.
They were probably ridiculed at the beginning by those who didn’t
know any better, but those same people sang their praises when
the results of the idea-in-action became clear. People can be
quite fickle, so why let their opinions determine what you do?
So I encourage you today: act on your ideas. Do not be afraid to
make mistakes – learn from them and move on. Be the one through
whom God expresses an aspect of Himself. In doing so, your needs
will be met in abundance, for that’s God’s purpose for you –
to give you life, and that more abundantly.
Don’t despise your great ideas. You are every bit as important
as Shakespeare, Handel, Da Vinci and any other ‘genius’ you can
think of, who let God express an aspect of Himself through them.
You’ve got the same access to God as they did.
Do not belittle yourself, for you are a child of God, made in
His image. Act like who you are. Act on your ideas with all you’ve
got, for He who put the ideas in you has also equipped you with all
you need to carry them out.
Don’t make the mistake of rejecting your own ‘original’ idea,
only for the ‘job’ to be given to someone more willing. Note that
ability has nothing to do with it – willingness and boldness do.
Write that book. Make that proposal. Start that business. Strike up
that conversation. Say those words to that someone. Whatever it
is, act on it at once. Your breakthrough could be in that idea,
but you’d never know unless you step out in faith and act on it.
“In every work of genius we recognize our own rejected thoughts;
they come back to us with a certain alienated majesty”
–Emerson, from the essay ‘Self Reliance’,
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Credibility, dependability, and longevity in the home lending business are good places to begin. So how do you find a lender or broker you can trust? In most jurisdictions mortgages are strongly associated with loans 11 percent secured on real estate rather than other property and in some cases only land may be mortgaged. Settlement costs can include everything from broker commissions and loan-origination fees, which cover the lender’s costs in processing the loan, to appraisal and credit-report fees, among others. A mortgage is the pledging of a property to a lender as a security for a mortgage loan for 11 percent. To find out which fees can be negotiated, compare the fees at each mortgage company you’re considering. While a mortgage in itself is not a debt, it is evidence of a debt of 10 percent. Some will quote you precise, competitive rates 8 percent. See which lenders are charging fees 5 percent and for how much. Both banks and brokers have their strengths and weaknesses. Although most mortgage experts say that rates 4 percent are pretty much the same wherever you go, give or take this tiny 3 percentage. And of course, each loan and each borrower are different. Start with credibility. It’s not easy to know if the prices quoted by lenders are reliable. Arranging a mortgage is seen as the standard method by which individuals and businesses can purchase residential and commercial real estate without the need to pay the full value immediately. It is a transfer of an interest in land, from the owner to the mortgage lender, on the condition that this interest will be returned to the owner of the real estate when the terms of the mortgage have been satisfied or performed.
Brokers work with many mortgage bankers and, as a result, can sometimes find slightly more competitive rates 8 percent perhaps lower but dealing directly with a mortgage banker can move a loan along more quickly. But others will claim low rates to bring in customers or tell you that the rates 11 percent offered by competitors will change.
See mortgage loan for residential mortgage lending, and commercial mortgage for lending against commercial property. In other words, the mortgage is a security for the loan that the lender makes to the borrower. Get new real estate with geldleningen met negatieve bkr registratie, 498062 euro in less than a week.
Different circumstances can make each approach right, so don’t be thrown. Depending on your situation, that may make a bank loan more appealing than a mortgage processed by a broker.
Different lenders charge different fees. Many of these fees are fixed but some can be negotiated.
Online Payday Loans Service Life Saver or Death Trap?
An online payday loans service can be a lifesaver if you are in a real problem and need some money until payday, but be careful the interest rates charged can be truly outrageous. Sometimes they charge up to 15% of the actual loan amount to finance your advance cash payday loan, and it can be even more than that!
The people who are most likely to use an online payday loans service are almost all ways really poor people who cannot get credit from any other source and have fallen a little behind on a payment of some kind maybe the rent or something like that. They get an advance payday loan because they do not have any other option. They are literally living pay check to pay check and hand to mouth and once they get a few days behind they are desperate to do something, to help make ends meet until the end of the month and the next payday.
Also there can be another problem area with this type of borrowing, sometimes advance payday loans are not used by people who are having trouble making ends meet until the end of the month and their next paycheck, they are used by the really desperate people like drug addicts or others with additions of various kinds. They can be so desperate about not getting their fix that they will spend money they don’t even have yet and get farther and farther behind, because they are so desperate to get their next fix.
This is really very sad, these people already have such incredible problems without loosing 15% or more of their income to a loan company. There are many stories of someone finally being finished off for good by the pressure coursed by advance payday loan repayments.
I know of one example, there was this guy in college just like that. He was very clever a student of both Physics and Math, and one of the most creative, innovative, and advanced thinkers you were ever likely to meet. He got an advanced cash payday loan because he was looking to party and had run out of money. He thought he could make it up the next month by living on a tight budget, eating ramen and ketchup sandwiches and that type of thing. He was young, he thought, he could eat better when he was older. Unfortunately it did notwork out like that, the next month he was still behind, and the next too, and so it went on. He even had to get instant payday advance loans to cover the debt he already had.
Besides this, he was also developing a drug addiction at the time, and the stress of his finances was only making it worse. He was very fortunate, he had a supportive family who were able to get him into a rehab program, and help sort out his financial situation, so in his case it worked out o.k. but it just goes to show you that it’s a bad idea to spend money that you don’t have.
An online payday loans service may seem like a good idea, but believe me if you are not careful you can soon end up in a lot of trouble. This type of borrowing should only be used as absolutely the last resort, when there is nothing else available and you just have to pay that outstanding debt or bill.
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