Report on Small Business newsletter: PayPal Supplying CRA with information about Company accounts

PayPal ordered to provide CRA with information about company accounts

PayPal has been arranged to offer the Canada Revenue Agency with information regarding its business account holders.

The business says a Federal Court order requires it to provide information regarding business accounts that received or received a payment between Jan. 1, 2014, and Nov. 10, 2017.

It’s not required to offer information regarding customers who have private PayPal accounts.

Ottawa, Ontario proceed to create peace with little business. Is it enough? read more

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PayPal ordered to provide CRA with information about Company accounts

PayPal has been arranged to offer the Canada Revenue Agency with information regarding its business account holders, as taxation officers search for companies that don’t report their income.

The business says a Federal Court order requires it to provide information regarding business accounts that received or received a payment between Jan. 1, 2014, and Nov. 10, 2017.

It’s not required to offer information regarding customers who have private PayPal accounts.

Within an email statement to The Globe and Mail, the company stated: “We’ve informed affected customers and they can contact us if they have any questions. We also have shared information on the Help Centre to help them comprehend our reporting obligations. … read more

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Ottawa, Ontario proceed to create peace with little business. Is it enough?

The Ontario and federal Liberals are discovering that, once lost, the love of small-business owners is hard to win back.

But they are trying.

Ontario Finance Minister Charles Sousa declared Tuesday in his autumn fiscal update that the government will reduce the small-business tax rate by a percentage point, to 3.5 percent, on Jan. 1. Additionally, it will roll out $500-million in new programs for smaller businesses.

It’s no denying that this bundle of goodies comes as Ontario is poised to put in place the Fair Workplaces, Better Jobs Act (Bill 148), highlighted by a increase in the minimum wage to $15 an hour from $11.60, together with extensions to vacation, medical and parental leave. Business groups have warned that the legislation will place 185,000 jobs in danger. read more

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Report on Small Business newsletter: Small Companies hit by Building losses have limited options

Reeling from construction-related losses, Halifax small-business owners decry ‘legislative void’

The sail-shaped towers of Halifax’s Nova Centre will fill up with life. The sprawling, multiblock downtown office, hotel and convention-centre complex was created as a metaphor — sails, clear icons of Nova Scotia’s economic past, throw in glass on the skyline to direct its economic future.

Some of its neighboring companies, however, have given up on the future entirely. Since construction started in 2013, a coalition of neighborhood storefront owners have accused the Nova Centre development of cutting their annual earnings by roughly a third, losses which have so far prompted at least two to move into the city’s North End and two more to market their businesses altogether. read more

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Reeling from construction-related losses, Halifax small-business owners decry ‘legislative void’

The sail-shaped towers of Halifax’s Nova Centre will fill up with life. The sprawling, multiblock downtown office, hotel and convention-centre complex was created as a metaphor — sails, clear icons of Nova Scotia’s economic past, throw in glass on the skyline to direct its economic future.

Some of its neighboring companies, however, have given up on the future entirely. Since construction started in 2013, a coalition of neighborhood storefront owners have accused the Nova Centre development of cutting their annual earnings by roughly a third, losses which have so far prompted at least two to move into the city’s North End and two more to market their companies altogether. read more

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Year-end tips to make life less taxing for Company owners

Business owners are confronting all kinds of challenges now — such as the impending tax changes that Finance Minister Bill Morneau has declared, and is in the process of finalizing.

Given the suggested changes, and also the fact that Dec. 31 is coming, here’s a list of ideas to take into account before the year’s end that could make life less taxing if you are a company owner.

Pay dividends to family members.

The Liberals have said they will proceed with proposals to curtail the payment of dividends to household members that aren’t working in, supplying capital to or assuming risks associated with the enterprise. These changes should be effective Jan. 1, 2018. Consider using the current rules by paying extra dividends to family members in 2017. read more

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Toronto eyes new tax Course that could spell relief for small Companies

The City of Toronto is exploring the notion of making a new property-tax course that could provide relief for small businesses facing soaring assessments and tax bills. This follows moves to make a similar strategy to assist cultural hubs in the city.

Quick redevelopment coupled with an assessment model that values properties with smaller buildings the same as ones with larger developments are causing challenges for small business owners.

“I am being asked to cover the building’s hypothetical price, which has not yet been accomplished,” says Frédéric Geisweiller, owner of Le Sélect Bistro in downtown Toronto. read more

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New disclosure form makes it easier for small Companies to compare loans

As alternative lenders for small businesses look to expand their market share in Canada, a number have banded together to bring more transparency to an industry sometimes criticized for taking advantage of borrowers.

Seven non-bank lenders, acting within the newly minted Canadian Lenders Association, will shortly be using a standardized disclosure form which makes it easier for borrowers to determine how much they are actually paying for financing.

Instead of having crucial information scattered throughout a compact multipage loan arrangement, the “Smart Box” brings all applicable payment details into one sheet. The expectation is that the standardized form will make it easier for borrowers to compare different lenders’ rates by factoring in both fees and interest. read more

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Five unanswered questions about the Liberals’ proposed small-business tax changes

Small-business owners remain in limbo over how Ottawa’s latest proposed tax changes will affect their livelihoods. While the federal Liberal government recently removed some of the controversial proposals tabled in July, there’s still uncertainty around pending changes to income sprinkling and a cap on passive investments.

Ottawa says it’s moving ahead with plans to stop income sprinkling for family members who aren’t “meaningfully” contributing to the business and promises to “simplify” the proposal in the weeks ahead. The government is also planning to put a higher tax on passive investment income in an incorporated business that exceeds $50,000 each year. Ottawa wants the income sprinkling rule to start on Jan. 1, 2018 and says the draft legislation for the passive income changes will be released in the upcoming federal budget, which is usually released in between February and April. read more

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Tax changes spur small business owners to revisit retirement plans

Small business owners are revisiting their retirement plans after Ottawa updated its proposed tax changes for private corporations – and some say it means they’ll be stuck working longer than expected.

Ottawa dropped some controversial proposals amid a backlash from the small business community but said last week that it’s moving ahead with plans to stop income sprinkling for family members not active in the business. It’s also planning to put a higher tax on passive investment income that exceeds $50,000 each year. While the pared-down proposal may have a more limited impact than the original plan, some incorporated business owners could still be hit by higher taxes, with longer-term implications for how and when they will retire. read more

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