PRESCRIBED INTEREST RATES

CRA has announced the prescribed rates for the first quarter, April 1 to June 30, 2011. The following rates apply:

• Interest charged on overdue taxes – 5%
• Interest paid on overpaid corporate tax – 1%
• Interest paid on overpaid personal tax – 3%
• Interest calculated on taxable benefits for shareholders and employees – 1%

 

HEALTH AND SAFETY AND INDEPENDENT CONTRACTORS

As part of the push by Ontario to increase their interference in business operations they recently challenged the “20 worker” rule as it applies to independent contractors. In an Ontario Court of Appeal decision it was ruled that even though independent contractors are not considered employees by CRA, Ontario Ministry of Labour Employment Standards branch, they are considered employees for application of the Occupational Health and Safety Act.

This means that an employer that has less than 20 employees but has independent contractors providing services, if the total adds up to 20 or more then the employer will be required to establish a Joint Health and Safety Committee.

 

PRE-NUPTUAL CONTRACTS

Courts are taking a very strong position concerning marriage contracts where a spouse is not making full and complete disclosure. The failure of making a full disclosure of assets and revenue sources can result in the court setting aside the complete contract and exposing all assets to equalization.

Disclosure must include all assets including assets held in trust. The disclosure must also include a valuation of the assets and this may prove to be contentious so every effort must be made to substantiate valuations.

Another issue to be considered is the timing of the agreement. If it is found that the agreement was produced too close to the marriage date then it may be ruled that it was signed under duress and again risks the contract being voided.

SEPARATION AND CONTINGENT LIABILITIES

The Supreme Court of Canada has ruled that a contingent liability, such as a disputed tax assessment, should be valued and included in determining the family assets. This should be somewhat of a comfort for taxpayers facing the uncertainty of long disputes with CRA.

PGC NEWS

Once more Parker Garber & Chesney LLP is one of the sponsors of The Caldwell Securities/Alzheimer Society of York Region Annual Golf Tournament at Copper Creek on August 18. We urge you to help us support this cause by signing up soon for a spot as it is now more than half booked already. If you cannot golf or are unavailable we would still welcome sponsorships, prizes or even a donation. Please follow the link for more information.  www.alzheimer-york.com/index.php/events/golf-classic