December 7th, 2012

TVQ – Modifications du 1er janvier 2013

(31 oct. 2012) À compter du 1er janvier 2013, la taxe de vente du Québec (TVQ) sera harmonisée à la taxe sur les produits et services (TPS/TVH) fédérale canadienne.
En vertu des nouvelles règles de la TVQ, à compter du 1er janvier 2013, la TVQ sera calculée au taux de 9,975 % sur le prix de vente des biens et services excluant la TPS.
Il en résultera au Québec des taxes de ventes totales de 14,975 % (5 % de TPS et 9,975 % de TVQ).
Les entreprises qui exercent leurs activités au Québec continueront de déclarer et de suivre la TPS/TVH et la TVQ séparément.
Taxe de vente du Québec (TVQ) – modifications du 1er janvier 2013 – détails
Les modifications suivantes sont prévues dans les nouveaux règlements :
  • Les entreprises qui vendent des biens et fournissent des services au Québec devront appliquer les règles relatives au «lieu de fourniture». Elles devront donc s’inscrire dans le régime de la TVQ, percevoir la TVQ et soumettre des déclarations de TVQ à Revenu Québec (Note : en date du 1er novembre 2012, les dispositions législatives et les procédures définitives concernant ce concept que l’on vient d’introduire n’avaient pas encore été publiées par Revenu Québec)
  • Les services financiers ne constitueront plus des fournitures détaxées mais des fournitures exonérées aux fins de la TVQ. Les entreprises du secteur des services financiers englobent les sociétés de placement et de portefeuille. Ces entreprises n’auront donc plus le droit de demander de remboursement de taxe sur les intrants (RTI) à l’égard des dépenses liées à la prestation de services financiers après le 31 décembre 2012
  • Les entreprises du secteur des services financiers qui ne sont inscrites que dans le régime de la TVQ (et non dans celui de la TPS) seront tenues d’annuler leur inscription dans le régime de la TVQ en date du 1er janvier 2013. Les entreprises qui sont inscrites dans les deux régimes de la TPS et de la TVQ ont le choix de continuer comme inscrits. L’annulation de l’inscription dans le régime de la TVQ n’entraînera pas le remboursement des RTI déjà demandés.
  • À compter du 1er avril 2013, toutes les entités des gouvernements fédéral et provincial et leurs mandataires respectifs seront assujettis à la fois à la TPS/TVH et à la TVQ. En conséquence, les certifications d’exemption n’auront plus d’application.
Taxe de vente du Québec (TVQ) – modifications du 1er janvier 2013 – éléments de planification
  • Les systèmes comptables informatisés et les caisses enregistreuses devront être modifiés pour permettre le calcul de la nouvelle TVQ sur la base de trois décimales (9,975 %) à compter du 1er janvier 2013.
  • Les entreprises du secteur des services financiers envisageront de devancer leurs achats pour les effectuer avant le 1er janvier 2013 afin de récupérer la TVQ alors que cela est encore possible.
  • Certaines entreprises ayant des établissements à l’extérieur du Québec pourront devoir s’inscrire dans le régime de la TVQ.
Taxe de vente du Québec (TVQ) – modifications du 1er janvier 2013 – autres informations
Pour de plus amples informations, communiquez avec Sylvie Plante à splante@uhyvictor.com ou (514) 282-1836 (poste 225).
Taxe de vente du Québec (TVQ) – modifications du 1er janvier 2013 – sources d’informations
Pour de plus amples informations de la part du ministère des Finances du Québec sur ces nouvelles mesures concernant la taxe de vente du Québec (TVQ), consultez le bulletin d’information 2012-4 publié le 31 mai 2012 qui peut être téléchargé en format PDF ci-dessous.
Pour de plus amples informations de la part de Revenu Québec sur ces nouvelles mesures concernant la taxe de vente du Québec (TVQ), cliquez sur le lien Modifications au régime de la TVQ en 2013.

November 12th, 2012

Beware of Tax Shelter “Schemes” !

(October 30, 2012) The Canada Revenue Agency (CRA) issued a news
release
stating that it is implementing “additional steps to protect taxpayers by auditing all gifting tax shelter schemes before a donation
claim will be allowed”. 

The CRA warns that it audits all shelter schemes and has
not found any that comply with Canadian tax laws. The CRA press release states:
 

“”The CRA” … has to date denied more than $5.5 billion in
donation claims and reassessed over 167,000 taxpayers who participated in
gifting tax shelter schemes. In addition, the CRA has revoked the charitable
status of 44 charitable organizations that participated in these gifting tax
shelter schemes.”

November 12th, 2012

QST Changes – Jan 1, 2013

(Oct 31, 2012) Starting Jan 1, 2013, the Quebec Sales Tax (QST) will be harmonized with the Canadian federal Goods and Services Tax (GST/HST).
Under the new QST rules, starting on January 1, 2013 QST will be calculated at a rate of 9.975% on the selling price of goods and services excluding the GST.
This will result in total sales taxes in Quebec of 14.975% (5% GST and 9.975% QST). 
Businesses operating in Quebec will have to continue to report and track the GST/HST and the QST separately.
Quebec Sales Tax (QST) changes – January 1, 2013 – Details
The following changes are included in the new regulations:
  • Businesses selling products and services in Quebec will have to follow the “Place of Supply” rules. As result, they must register for QST, collect QST and file QST reports with Revenu Quebec (Note: as of November 1, 2012 the final legislation and procedures for this newly-introduced concept have not yet been distributed by Revenu Quebec).
  • Financial services will be changed from zero-rated to exempt for QST purposes. Financial services include investment and holding companies. Therefore, these businesses will no longer be entitled to claim Input Tax Refunds (ITR’s) on expenditures related to the delivery of financial services after December 31, 2012.
  • Financial services businesses which are only registered for the QST (and not the GST) will be required to cancel their QST registration as of January 1, 2013. Those registered for both the GST and QST have the option to continue as registrants. Cancellation of the QST will not result in the repayment of previously claimed ITR’s.
  • Starting April 1, 2013, all federal and provincial government entities and their respective agents will be subject to both GST/HST and QST. As a result, exemption certificates will no longer be applicable.
Quebec Sales Tax (QST) changes – January 1, 2013 – Planning Points
  • Computerized accounting systems and cash registers must be modified to accommodate the calculation of the new QST on the basis of three decimal points (9.975%) starting January 1, 2013.
  • Financial services businesses should consider accelerating their purchases prior to January 1, 2013 to recoup the QST while still possible.
  • Some businesses with establishments outside Quebec may have to register for the QST.
Quebec Sales Tax (QST) changes – January 1, 2013 – Further Information
For further information please contact Ken Shemie at kshemie@uhyvictor.com or (514) 282-1836 #273.
Quebec Sales Tax (QST) changes – January 1, 2013 – Source Information
For additional information from the Quebec Ministère des Finances on these new Quebec Sales Tax (QST) measures, consult information bulletin 2012-4 published on May 31, 2012 that can be downloaded in PDF below.
For additional information from Revenu Quebec on these new Quebec Sales Tax (QST) measures, click on this link: Revenu Quebec QST Changes (January 1, 2013).
This information is provided with the understanding that the author is not responsible for any errors or omissions or actions taken based on this information.

Readers are advised to obtain further information from their professional advisors.

November 12th, 2012

UHY Study – Canada holds the line on personal income taxes

(Nov 5, 2012) The gap between Canada and the high tax Western Europe countries grows larger, while Eastern Europe, BRIC’s and Asia-Pacific offer lowest taxes …
The gap between personal taxes in high-tax and low-tax economies has grown larger over the last year, according to research conducted by UHY, the international accounting and consultancy network.
UHY’s research indicates that while Canadian personal income taxes remained stable over the past year, major European economies imposed an average tax increase of  $1,784 USD on those earning $200,000 USD, compared to an average $266 USD tax cut in the BRIC emerging economies.
UHY tax professionals studied data in 26 countries across its international network, including Canada, all members of the G8 and the emerging BRIC economies. UHY calculated that the basic ‘take home pay’ of a single, unmarried employee after income taxes and employee social security contributions for a range of salaries.
UHY concludes that the broadening gap in personal taxes has been driven by struggling European economies raising taxes to cover their budget deficits. UHY warns that this could make European economies less competitive, compared to other low tax economies.
Ladislav Hornan, chairman of UHY, says: “The personal tax gap between Western Europe and the rest of the world continues to grow larger. The distinction is sharp. Western European countries make up the five highest taxing economies in almost every tax bracket we looked at. Countries like China, Estonia, and Brazil consistently had the lowest tax burden.”

“Countries like France or Italy have had relatively high taxes for some time, but this year has seen other debt-laden European economies join them.”
Ladislav Hornan adds: “The big European economies need to be very careful. They are putting a lot of pressure on individuals. There is a ‘brain drain’ risk for some countries with high personal taxes, particularly amongst internationally mobile high earners. Losing talented workers and the taxes they pay will make it even harder for countries to close deficits.”
Two of the countries imposing the five highest tax rises between 2011 and 2012 for those earning $200,000 USD were G8 countries: the US and France.
There were six countries to take over 50% of incomes, all in Western Europe, and all for incomes over $1,500,000 USD. Those countries were: France (54% income taken); Italy (52%); Ireland (52%); the Netherlands (51%); Spain (50%); and the UK (50%). France recently announced plans to introduce a dramatic marginal 75% tax rate on $ 1.3m+ USD (EUR 1m+) incomes from 2013.
Russia was the most consistently low-tax economy, appearing most often in the five lowest taxing economies across the pay brackets. Italy and France appeared most often in the five highest taxing economies.
Nikolay Litvinov, partner of UHY Yans-Audit LLC in Russia, a member of UHY, comments: “Russia’s 13% flat rate of income tax makes it very competitive compared to rival economies, especially at the higher end of the income scale. Russia is consistently one of the cheapest places to live in terms of income tax. These low tax rates may help convince young and entrepreneurial Russians to stay in the country, and they may even tempt expats to return.”
Jonathan Levy, Partner, UHY Victor in Canada, a member of UHY, observes: “Canada seems to have found the balance between a progressive and competitive tax system. Unlike several other major industrial economies, Canada doesn’t have a huge debt burden to complicate things. Low taxes are offered for the lowest earners, and the taxes on high earners are still generally lower than other comparable countries.”

“The relatively low tax burden reflects the strength of the Canadian economy.”
Please CLICK HERE to get the detailed findings.
UHY Victor LLP is a member of UHY, an international network of independent accounting and consulting firms with offices in major business centres throughout the world.  Further information can be found at www.uhyvictor.com.
To learn more about the services and capabilities UHY Victor can offer, please contact Jonathan Levy at jlevy@uhyvictor.com.
For UHY, the international network
Dominique Maeremans
+44 20 7767 2621, or email: d.maeremans@uhy.com
Nick Croysdill or Nick Cosgrove
Mattison Public Relations
+44 20 7645 3636 or +44 7815 823 412 or nick.croysdill@mattison.co.uk

October 10th, 2012

UHY Capability Statement 2013

 

(Oct 10, 2012)  UHY Victor introduces UHY Capability Statement 2013 …

Click here for 2013 capability statement

UHY VICTOR introduces the latest UHY ‘Capability Statement 2013’. This edition showcases the services and capabilities of the UHY network through seven client case studies, covering a range of international clients across a variety of sectors such as agriculture, biochemistry, energy, financial software, IT consultancy, leisure, and telecommunications.

The UHY ‘Capability Statement 2013’ offers insight into the range of work undertaken by UHY VICTOR in conjunction with other UHY member firms.

To learn more about the services and capabilities that UHY VICTOR can offer, please contact Jonathan Levy at jlevy@uhyvictor.com.

About UHY International
Established in 1986 and based in London, UK, UHY is a network of independent accounting and consulting firms with offices in 240 major business centres in 81 countries. Our services and teams are tailored to suit the culture of each client including publicly listed corporations, large and medium-sized companies, privately owned businesses, not-for-profit and public organizations. Each member of UHY is a legally separate and independent firm. For further information on UHY, please visit www.uhy.com.