The short version: Equifax is one of the three main organizations in the US that manages & calculates credit scores. To do that effectively, they have access to almost every piece of financial data for adults in the country, plus pretty much anyone who’s lived/worked in the US. We’re talking social security, tax file numbers, drivers’ license, credit card numbers…the big stuff. On July 29, Equifax disclosed the breach, stating that hackers had repeatedly gotten in through a vulnerability in the web application from mid-May to July of this year.

If you’re an Equifax customer: As scary as all that sounds, what’s done is done. Equifax, cyber-security experts & law enforcement officials are on the case, working to minimize the long-term damage.

The best action now is to protect yourself against fallout:

1. Go to: http://www.equifaxsecurity2017.com?utm_source=rss&utm_medium=rss to see if your data may have been affected. There was some news that this site was delivering random results, but Equifax announced it has been corrected. At this stage, it’s safest to assume everyone with a credit history has been impacted, so unless that link gives a definite ‘no you’re safe’ response, continue with the following recommendations.
2. Claim the Equifax free year of credit monitoring & identity theft insurance (if you’re a US resident). If you’re not eligible, consider sourcing your own. As the hacked data will continue to circulate for some time, also consider extending your credit monitoring for a few more years.
3. Keep a close eye on your finances and accounts. Check for notifications of new credit applications, monitor your statements and bills, and immediately report any suspicious activity or sudden change in billing.
4. Change all your passwords to be strong, unique and long. Any of the stolen data may give hackers a free pass into the rest of your bank accounts, email and personal information.
5. Add two-factor authentication where possible. This is when an account demands a second layer of authentication before allowing access or changes – getting the password correct isn’t enough, the hacker would also need to get the special code sent by SMS.
6. Consider freezing your credit report. This makes it harder for identity thieves to open accounts under your name, as access is completely restricted until you choose to un-freeze.

1. www.cpacanada.ca/en/connecting-and-news/news/professional-news/2017/july/finance-canada-consultation?utm_source=rss&utm_medium=rss
2. www.taxpayer.com/commentaries/bill-morneau-s-attack-on-the-middle-class?utm_source=rss&utm_medium=rss
3.  www.fin.gc.ca/activty/consult/tppc-pfsp-eng.asp?utm_source=rss&utm_medium=rss

These changes were proposed to ensure the wealthiest of Canadians pay their fair share of taxes.  Unfortunately, the proposed changes impact ALL private corporations, not just those that are owned by the wealthiest of Canadians.  In fact, the majority of private corporations in Canada are owned by “middle-class” Canadians, the very group of Canadians that the Government promised to protect. 

We do not believe that these proposals are fair, and are counter-productive to the Canadian economy as a whole for the following reasons:

1. The proposals are based on the unsupportable argument that an employee and a private corporation owner should be taxed the same.  We believe that a private corporation owner carries significant additional risks and responsibilities that an employee does not, hence warrants the current tax regime;
2. The proposals argue that spouses who are not directly involved in the business do not share in the risks and rewards of the corporation;
3. The proposed changes casts a tax net at the wealthiest of Canadians that is so wide that it is going to catch hundreds of thousands of Canadians in the middle-class, resulting in the largest tax increase in decades to the middle-class;
4. The proposed changes take away an important incentive for people to take risk and to innovate in Canada;
5. The “trickle-down” effect on the economy will be far in excess of the tax revenues generated;
6. A 75-day consultation window, in the middle of summer, is not properly consulting with the Canadians affected, especially given the changes proposed are changing tax law that has been in place for over 40 years;
7. The proposed changes are overly complex, thus resulting in significant tax uncertainty for all impacted.

We think that you, as a private corporation owner, should be aware of these proposals and how they may affect your business, your family, and your future.  It is a very good time to contact your Member of Parliament (Pamela Goldsmith - Jones - [email protected] or 604.913.2660) to express your concerns before the consultation period ends on October 2, 2017.

Some of these proposals are scheduled to come into law on January 1, 2018, which will likely impact your 2017 tax planning decisions.  As there may be significant amendments to the proposed legislation (or hopefully abandoned altogether depending on the response from Canadians during the consultation period), we do not recommend any action with regard to your business structure at this time.  However, we will be in touch with you after the consultation period closes and once it becomes clear as to the extent of the final proposed changes.

Administrative Assistant

TCG is looking for an Administrative Assistant who will be responsible to be the “face” of the firm.

The successful candidate will exemplify the firm’s values of exceptional customer service, integrity, excellence, confidentiality and community. This full-time (Sechelt head office) position requires 2 years of previous related experience. Successful completion of some post-secondary education would be an asset.

TCG provides a safe, supportive and stable work environment as well as annual social activities and support for staff who wish to be involved in socially responsible activities outside of the firm at appropriate times in the year. A competitive salary and benefit package will be provided commensurate with level of experience.

Please apply by July 10, 2017 with materials you deem necessary (such as letter of application, resume, references, etc.) and that demonstrate your level of computer and Internet literacy and English competency to:

Only those chosen for an interview will be contacted and all references will be checked.

Have you been a victim?

Any income and capital gains in your TFSA are tax-free to you, so a TFSA should certainly be part of your overall savings portfolio.

Like registered retirement savings plans (“RRSP”), you have the ability to designate a beneficiary on your TFSA.  Unlike RRSP’s, a TFSA has a third possible designation, the “successor holder”, which is still not well understood by many, and the differences in the designations can have a significant impact to your Estate.  The only person that can be a “successor holder” is one’s spouse.

It should be mentioned that you may not have ANY TFSA beneficiary designation.  In the case of a self-administered TFSA account (i.e. one you opened through an online brokerage), the default may be no designation until you to file a “beneficiary designation form” to have one added to the account.  Your beneficiary designation is typically shown on your investment statements, if not contact your financial institution to confirm your designation.  In the case of no designation made, the default on your death is your TFSA gets paid to your Estate.

Here are the income tax and probate fee differences between the designations:

1. No designation (default Estate) / Estate designated as beneficiary:

• Tax on any increase in value up to date of death - none
• Tax on any increase in value after date of death – fully taxable to Estate as income
• Subject to BC probate fees – yes

2. Specific individual and/or spouse designated as beneficiary:

• Tax on any increase in value up to date of death - none
• Tax on any increase in value after date of death – fully taxable to individuals and/or spouse as income
• Subject to BC probate fees – no

3. Spouse designated as Successor Holder:

• Tax on any increase in value up to date of death - none
• Tax on any increase in value after date of death – none
• Subject to BC probate fees – no

So if you have a spouse, you should ensure that they are designated as the successor holder of your TFSA.  This ensures, on your death, they step into your shoes as owner of your TFSA, effectively doubling the amount of TFSA that continues to grow tax-free.  If you only designate your spouse as beneficiary, this is not the same as designating them as successor holder, because your TFSA will not continue to grow tax-free in their hands upon your death.

For more information, contact your Chartered Professional Accountant or financial institution. You can get more information at: http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/tfsa-celi/dth/menu-eng.html?utm_source=rss&utm_medium=rss

If you do own a business, you have probably had to pay CRA at one time or another. See the link below for helpful information on how to make a payment to CRA, or in cases where you cannot make a payment right away, how to arrange for payment options.

http://www.cra-arc.gc.ca/vdgllry/cllctns/menu-eng.html?utm_source=rss&utm_medium=rss

New for 2016 – teachers and early childhood educators may be eligible for the Eligible Educator School Supply Tax Credit which will allow you to claim a refundable tax credit of 15% on up to $1,000 of school supplies purchased.  Click the following link for more information including which educators are eligible to claim the tax credit.

http://www.cra-arc.gc.ca/nwsrm/txtps/2016/tt160906-eng.html?utm_source=rss&utm_medium=rss

http://www.cra-arc.gc.ca/gncy/bdgt/2016/qa11-eng.html?utm_source=rss&utm_medium=rss