Poinsettias at Christmas
9 years ago
Wednesday, June 28, 2006
Tuesday, June 27, 2006
Giving Abroad...
The second question was; why can’t domestic Canadian charities funnel receipted donations to non-affiliated non-profit organizations?
The short answer can be determined in the definition of “total gifts”. Section 118.1 (3) defines what total gifts represent. They include four components. Crown gifts, cultural gifts, ecological gifts, and total charitable gifts.
Total charitable gifts are defined as gifts to:
• Canadian registered charities;
• Registered Canadian amateur athletic associations;
• Prescribed universities outside Canada;
• Certain tax-free housing organizations in Canada
• Canadian municipalities
• United Nations
• Charities outside Canada, to which the Government of Canada has made a donation in the year or the preceding year
This explains the individual limit on charitable contributions (to be eligible for a tax receipt). This ties right in to the question would people donate even if they could not receive a charitable tax credit. If their on willing to donate to US based organizations, then the answer is yes. We’ll debate that question tomorrow.
Canadian registered charities are not international organizations, nor do small charities have operations in the USA or abroad, nor do they have affiliated charities operating abroad with headquarters in Canada. ONLY donations to Canadian registered charities are eligible to receive a tax credit. Therefore donations to charitable works in the USA and the rest of the globe, are not tax deductible (except to the extent that it can offset American source income, that may be taxable to a Canadian resident).
The short answer can be determined in the definition of “total gifts”. Section 118.1 (3) defines what total gifts represent. They include four components. Crown gifts, cultural gifts, ecological gifts, and total charitable gifts.
Total charitable gifts are defined as gifts to:
• Canadian registered charities;
• Registered Canadian amateur athletic associations;
• Prescribed universities outside Canada;
• Certain tax-free housing organizations in Canada
• Canadian municipalities
• United Nations
• Charities outside Canada, to which the Government of Canada has made a donation in the year or the preceding year
This explains the individual limit on charitable contributions (to be eligible for a tax receipt). This ties right in to the question would people donate even if they could not receive a charitable tax credit. If their on willing to donate to US based organizations, then the answer is yes. We’ll debate that question tomorrow.
Canadian registered charities are not international organizations, nor do small charities have operations in the USA or abroad, nor do they have affiliated charities operating abroad with headquarters in Canada. ONLY donations to Canadian registered charities are eligible to receive a tax credit. Therefore donations to charitable works in the USA and the rest of the globe, are not tax deductible (except to the extent that it can offset American source income, that may be taxable to a Canadian resident).
Monday, June 26, 2006
Is there a ‘cap’ on charitable tax credits?
In the next couple of weeks, I plan to explain some perplexing issues of the Income Tax Act. The research will be based on CRA’s pronouncements and information circulars.
In Sunday school, some very interesting points were brought up. Is there a federal “cap” on charitable donations? Would people contribute charitable donations, even if they could not get a tax receipt? Why can’t domestic Canadian charities funnel receipted donations to non-affiliated non-profit organizations?
Today we’ll discuss question one. Does the federal government’s tax legislation place a ‘cap’ on charitable contributions?
The long and short of the question is, yes!
It is a common misconception that the ‘cap’ is the tax credit formula. This is not true. The limitation as articulated in section 118.1 (1) that ‘total charitable gifts may be eligible for the tax credit to a maximum tax credit of 75% of division B income’. Therefore, the ‘cap’ on charitable contributions is 75% of taxable income (supported by the proper receipts).
Most often, the ‘cap’ is considered the spirit and calculation of the tax credit. The first limitation is that tax credits can only be used to the extent that they offset division B (taxable) income. The second limitation is the calculation. The formula to calculate the charitable tax credit is equal to (A*B) + C (D-B); where A= 16%; B= first $200; C= highest federal marginal tax rate for the year; D= is the total gifts in excess of $200.
In Sunday school, some very interesting points were brought up. Is there a federal “cap” on charitable donations? Would people contribute charitable donations, even if they could not get a tax receipt? Why can’t domestic Canadian charities funnel receipted donations to non-affiliated non-profit organizations?
Today we’ll discuss question one. Does the federal government’s tax legislation place a ‘cap’ on charitable contributions?
The long and short of the question is, yes!
It is a common misconception that the ‘cap’ is the tax credit formula. This is not true. The limitation as articulated in section 118.1 (1) that ‘total charitable gifts may be eligible for the tax credit to a maximum tax credit of 75% of division B income’. Therefore, the ‘cap’ on charitable contributions is 75% of taxable income (supported by the proper receipts).
Most often, the ‘cap’ is considered the spirit and calculation of the tax credit. The first limitation is that tax credits can only be used to the extent that they offset division B (taxable) income. The second limitation is the calculation. The formula to calculate the charitable tax credit is equal to (A*B) + C (D-B); where A= 16%; B= first $200; C= highest federal marginal tax rate for the year; D= is the total gifts in excess of $200.
Friday, June 23, 2006
Tax Protestors
Are you still paying income tax? Didn't you hear that income doesn't include wages, or that the section 92 of the Constitution was never ratified, or that none of the provinces are actually part of Canada., or that income isn't defined in the Income Tax Act? Or didn't you know that if you simply placed all of your assets into a tax shelter that nobody could ever touch them or collect taxes on them, including the government? Well, if you didn't hear any of this, don't worry because it isn't true. What is true is that some scam artists have made good money selling these bogus theories before themselves ending up in jail.
(Canadianized from www.quatloos.com)
(Canadianized from www.quatloos.com)
Thursday, June 22, 2006
Canadian Debt Projections
This chart depicts the amount of the Canadian National Debt; and its projected interest expenses and debt reduction. Its hard to believe that almost 20% of the estimated budget revenues goes to maintain crediable status on bank loans and interest on Canadian Savings Bonds. Just think what improvements Canada could have if the almost 50 billion could be spent on health care or defense. I suppose it would also create another source of temptation for mismanagement and fraud [:)].One professor at the U of Windsor, claimed that around 80% of Canada's National Debt is internally held. He said only in Canada, would citizens of a country be so willing to purchase its own governments debt.
Accounting Stories
An accountant visited the Natural History museum. While standing near the dinosaur he said to his neighbor: "This dinosaur is two billion years and ten months old".
"Where did you get this exact information?"
"I was here ten months ago, and the guide told me that the dinosaur is two billion years old."
The accountant had just read the story of Cinderella to his four-year-old daughter for the first time. The little girl was fascinated by the story, especially the part where the pumpkin turns into a golden coach. Suddenly she piped up, "Daddy, when the pumpkin turned into a golden coach, would that be classed as income or a long-term capital gain?"
An accountant is having a hard time sleeping and goes to see his doctor. "Doctor, I just can't get to sleep at night.""Have you tried counting sheep?""That's the problem - I make a mistake and then spend three hours trying to find it."
"Where did you get this exact information?"
"I was here ten months ago, and the guide told me that the dinosaur is two billion years old."
The accountant had just read the story of Cinderella to his four-year-old daughter for the first time. The little girl was fascinated by the story, especially the part where the pumpkin turns into a golden coach. Suddenly she piped up, "Daddy, when the pumpkin turned into a golden coach, would that be classed as income or a long-term capital gain?"
An accountant is having a hard time sleeping and goes to see his doctor. "Doctor, I just can't get to sleep at night.""Have you tried counting sheep?""That's the problem - I make a mistake and then spend three hours trying to find it."
Sunday, June 18, 2006
Saturday, June 17, 2006
Puch Lines...
This afternoon, I helped dish out the puch at Grandma Unsworth's funneral lunch. She was 107 years old. Any ways I had the fortunate pleasure of dishing up the punch. I experienced some difficulties. I thought the punch was fine, but I had difficulties giving or forcing people to take 7 or 8ths. If its good puch, and the day is hot and humid, shouldn't they choose puch (with its sugar) over ice water? I guess the joke got old when I kept asking people (Bro Byer, Greg, Mat and Brad Moulton), if they wanted more. The puch line of the joke got old after a time, (or so my dear brother told me afterwards). I'm sure Ribs would have agreed to take 8th helping, (after all he is 9 or 10 personalities at once on his blog). As Jan would say long live the income tax act!!!
Friday, June 16, 2006
Tax Wise...
The age old question, to tax or not to tax, will soon surface on monday. Monday June 19, 2006, all municipal, provincial and federal taxes will have been paid. After this date, all Canadians can claim that they are working for themselves. The tax system was estabilished initially to create a source of economic revenue. Without this we could not enjoy services like health care, education, police and fire etc. Taxes are very much a part of our daily life. The tax man can be traced back to the very fabric of time to colonial America, Medieval Europe, the Roman Empire, the Kingdom of Isreal during the reign of King Saul. Taxes are as much a part of human society today as computers and palm pilots. Without taxes the world would be a mass of confused people without direction or leadership. It would permit wealthy people to take advantage of the masses (your saying thats different than today?). Without taxes where would we be today. One can think of the tax system as one would purchase insurance. You pay taxes to have fundamental services provided to you, whether it is healthcare or police or fire or education, its one great big insurance policy (or is it an insurance scam :)).
Monday, June 12, 2006
Graduation...
Here I am with my room mate David Ross Douglas. Who knows, someday he may be Sarnia- Lambton's Conservative MP.
Graduation
Here I am at the graduation. We would have had other pictures of me shaking the Presidents and Vice Chancellors hand, but they mysteriously disappeared. Everything has gone down hill since Jan was fired. Who knows I might have to bring him back as chief producer :).
Friday, June 09, 2006
Ribs Quits Bloging
Isn't it wonderful, my dear 3 readers, Jan has been fired, stopping the pending legal dispute, and this blog can return to its normal eloquent commentary. It has come to my attention that vetern blogger Ribs, was so depressed than Jan left him, that he stopped blogging for a week. All his subscribers need to log on to his site and demand a refund on their perscription. As Jan would say "Long live the Income Tax Act!"
Thursday, June 08, 2006
Jan Fired... Settlement Reached
Beaver Meadow, ON (AP) The dispute over producer rights of noted Hab supporter Ribs and Hab antagonist JCK is over. Blog readers can now be relieved that the lawsuit will not cause further interruptions. *
JCK was quoted as saying "It was a relief to fire Jan... not only because it appeased the legal requirment, but because it appeased the necessity of firing an incorrect reporter." (Jan has previously forcasted a Buffalo Sabre win, and a Edmonton Oiler Stanley Cup Chamionship). After being down 2-0, it appears Jan is wrong for the third time, and after three strikes your out. (he also frequently misspelled words in his articles, perhaps from typing to fast and not proof reading). Any ways the Accountant Perspective will now return to its normal programing on friday.
The fued between Ribs and JCK should go down in history with some magical nick name, like the War of the Roses, the War of a thousand tears, or the Great Rodent War. Whatever historians choose, the battles and the unread (deleted) commentary will live on, in perpetual bliss of the great conflict. It was fun while it lasted, but now its over. :)
*by the way over the last few weeks the struggle between JCK and Ribs was based on ribthekid.blogspot.com, were he fired Jan, causing the orgin of the struggle, the fued, the conflict, the great gathering of words!!! Remember as Jan would so delicately put it... Long Live the Income Tax Act!!!
JCK was quoted as saying "It was a relief to fire Jan... not only because it appeased the legal requirment, but because it appeased the necessity of firing an incorrect reporter." (Jan has previously forcasted a Buffalo Sabre win, and a Edmonton Oiler Stanley Cup Chamionship). After being down 2-0, it appears Jan is wrong for the third time, and after three strikes your out. (he also frequently misspelled words in his articles, perhaps from typing to fast and not proof reading). Any ways the Accountant Perspective will now return to its normal programing on friday.
The fued between Ribs and JCK should go down in history with some magical nick name, like the War of the Roses, the War of a thousand tears, or the Great Rodent War. Whatever historians choose, the battles and the unread (deleted) commentary will live on, in perpetual bliss of the great conflict. It was fun while it lasted, but now its over. :)
*by the way over the last few weeks the struggle between JCK and Ribs was based on ribthekid.blogspot.com, were he fired Jan, causing the orgin of the struggle, the fued, the conflict, the great gathering of words!!! Remember as Jan would so delicately put it... Long Live the Income Tax Act!!!
Tuesday, June 06, 2006
Giving is a Necessity...Or is It?
About 22 million Canadians, or 85 per cent of the population over the age of 15, made a financial contribution to a charity or other non-profit group in 2004, according to Statistics Canada.
The total amount contributed came to $8.9 billion, with individuals averaging $400 in donations during the year. Almost half of the money — $4 billion — was contributed to religious organizations. Only 38 per cent of adult Canadians sent money to religious organizations.
The provinces with the greatest percentage of donors were Prince Edward Island and Newfoundland and Labrador, where 93 per cent of adults gave money. "All four Atlantic provinces had a higher percentage of donors than the national rate,"
Remember the statistics are correct 19 times out of 20.
Statistics Canada surveyed 22,000 Canadians aged 15 and older about their charitable giving.
The total amount contributed came to $8.9 billion, with individuals averaging $400 in donations during the year. Almost half of the money — $4 billion — was contributed to religious organizations. Only 38 per cent of adult Canadians sent money to religious organizations.
The provinces with the greatest percentage of donors were Prince Edward Island and Newfoundland and Labrador, where 93 per cent of adults gave money. "All four Atlantic provinces had a higher percentage of donors than the national rate,"
Remember the statistics are correct 19 times out of 20.
Statistics Canada surveyed 22,000 Canadians aged 15 and older about their charitable giving.
Monday, June 05, 2006
RIBS SUES President JCK
Due to the emotional distress a newspaper article will be placed in the blog today...
BEAVER MEADOW - (AP) This weekend, in superior court Rib's of Rib the Kid Blog filed a 1.2 million dollar lawsuit against President JCK and his staff of the Accountant
Perspective, over the piracy of his staff and ideas. The plaintiff claimed that a free press does not mean that producers can co-produce multi blogs at once.
It was reported that President JCK was paying the said employee "JAN" up to $10 a story (much more than free food and a trip aroung the hamster wheel that he recieved in payment from Ribs).
In interview JCK said "that Rib's was the guilty one, and I am following the principle of the American dream promoting free enterprise instead of the economic enslavement principle that Mr Rib's follows"
JAN claimed that he was forced to come up with the story in order to obtain the high paying job from the acountant perspective. He claimed developing a plan to triple the daily subscribers was a job requirment.
Sources with the associated press determined that President JCK has yet to terminate the services of JAN. No doubt the cheap accountant wants to get his moneys worth as he paid two weeks in advance for JAN's services.
Sources close to both sides, have determined that a compromise will be worked out shortly to avoid a full fledged court battle.
BEAVER MEADOW - (AP) This weekend, in superior court Rib's of Rib the Kid Blog filed a 1.2 million dollar lawsuit against President JCK and his staff of the Accountant
Perspective, over the piracy of his staff and ideas. The plaintiff claimed that a free press does not mean that producers can co-produce multi blogs at once.
It was reported that President JCK was paying the said employee "JAN" up to $10 a story (much more than free food and a trip aroung the hamster wheel that he recieved in payment from Ribs).
In interview JCK said "that Rib's was the guilty one, and I am following the principle of the American dream promoting free enterprise instead of the economic enslavement principle that Mr Rib's follows"
JAN claimed that he was forced to come up with the story in order to obtain the high paying job from the acountant perspective. He claimed developing a plan to triple the daily subscribers was a job requirment.
Sources with the associated press determined that President JCK has yet to terminate the services of JAN. No doubt the cheap accountant wants to get his moneys worth as he paid two weeks in advance for JAN's services.
Sources close to both sides, have determined that a compromise will be worked out shortly to avoid a full fledged court battle.
Saturday, June 03, 2006
Yard Sales...
Well, Jan is taking the day off.
It's the weekend so I JCK must type something so that my loyal Ribs factory has something new to read (sorry Ribs, I'm just ribben you).
Today Associate Pastor Joe, Pastor Byer and I went early to a yard sale in Brigden. It was kind of enriching and amusing to see how he negotiated the prices. It went like this...
Bro Byer: "Could you tell me more about it?" (the item in question)
Lady: Answered the question about the book or box (whatever it was)
And then
Bro Byer: "I'll give you $5"
Lady: "$7.50"
Bro Byer: "OK!!"
I thought the yard selling technique was very informative, and I took a great deal of notes. So I should be more effective in the future endeavours.
At the next stop, I tried to utilize the technique.
Their was a book that I read in elementry school for $0.10, and I told the lady that I'd give here $0.25 for it. Bro Byer and Joe thought that was a little weird, but I was just trying to be a good yard sale customer. Maybe I still have work to do yet on my technique.
I found it quite awkward when we went up to a place that had an assortment of junk that couldn't be sold on Ebay :). I learned that when you walk away, you just say "Well, have a nice day". Joe teased me that I'd buy the cheapest thing there just so I could walk away with something.
It's the weekend so I JCK must type something so that my loyal Ribs factory has something new to read (sorry Ribs, I'm just ribben you).
Today Associate Pastor Joe, Pastor Byer and I went early to a yard sale in Brigden. It was kind of enriching and amusing to see how he negotiated the prices. It went like this...
Bro Byer: "Could you tell me more about it?" (the item in question)
Lady: Answered the question about the book or box (whatever it was)
And then
Bro Byer: "I'll give you $5"
Lady: "$7.50"
Bro Byer: "OK!!"
I thought the yard selling technique was very informative, and I took a great deal of notes. So I should be more effective in the future endeavours.
At the next stop, I tried to utilize the technique.
Their was a book that I read in elementry school for $0.10, and I told the lady that I'd give here $0.25 for it. Bro Byer and Joe thought that was a little weird, but I was just trying to be a good yard sale customer. Maybe I still have work to do yet on my technique.
I found it quite awkward when we went up to a place that had an assortment of junk that couldn't be sold on Ebay :). I learned that when you walk away, you just say "Well, have a nice day". Joe teased me that I'd buy the cheapest thing there just so I could walk away with something.
Thursday, June 01, 2006
The Collective...
This morning... I have received phone calls from Ribs and now Steve and Christobal both crying... begging me to come home... well to tell you the truth I do kind of miss the antagonistic view point that Ribs has with his blogging technique... but I did sign a 2 week contract... so I will continue my impressive blogging for now... Long Live the Income Tax Act.... I still don't get what that means... but it was on my contract--Jan
Oil Prices Fall...Leafs Resign McCabe
I'm glad that on this blog, I don't have to pretend to like the Montreal Canadians. Go Leafs Go... The president JCK is taking a break and has left this blog in my comfortable, capable paws. The only condition as I continue to perform my duties is that the blog must contain something to do with business... ok "Oil prices fall after U.S. suggests direct talks with Tehran"... ok enough of that... back to more important things like hockey. I predict a Sabre win tonight and a Edmonton 4-2 Stanley Cup series win in the weeks ahead... The Leafs have reportedly resigned McCabe to a 5 year 5.5 million deal... also Lindros is reportedly agreeing to 0.75 million one year deal... Leafs also seem to be interested in the Gerber, whose value has decreased after he fell apart in the playoffs... there probably thinking they don't need him for the playoffs... ops sorry its the Montreal Canadian brain washing coming through again :)...Toronto is also interested in bring the Kaberle brothers together... Go Leafs... oh ya... Long live the Income Tax Act...
Jan Speaks Out
As the new producer, I feel it prudent to discuss how I came to this point. I started off as an ordinary hamster on Ribs blog, were I was repeatedly yelled at and ordered around. I enjoy the quiet now as I'm working at a place that respects my talents. I had a call this morning from Ribs pleading with me to come home, after his ratings began to drop. I have yet to decide if I will or not... For the time being long live the Income Tax Act!!!
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