COVID-19 Update

Effective immediately, Deverdenne Davis Cyr LLP will operate in an electronic environment only. We will no longer be accepting paper documents.

For the safety of our clients and the Grande Prairie community, we have made the decision to close the office and work remotely.

We are fortunate to have the ability to process your accounting and taxation needs electronically. We ask that you provide all documents for your personal taxes and corporate year-ends via FileShare on our website.

FileShare Link.

FileShare is a secure way to submit documents and files to our office. Documents are encrypted and there are no size restrictions on files. Simply click on the link, enter your name, a brief message and add files or drag and drop your files, then click upload.

Our phone lines continue to be fully functional, so please call reception at 780-814-7474 if you require additional assistance.

If you prefer to submit using regular email, we encourage you to password protect your documents as an added precaution. Please call reception at 780-814-7474 with your chosen password.

Once complete, your final package will be delivered to you electronically.

Your business, your health and the health of our team members are of utmost importance to us. We will strive to meet your needs with limited disruption during this time of uncertainty.

Sincerely,
Deverdenne Davis Cyr LLP

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As it can be difficult to navigate through the CRA website and find the information you may be looking for, we have attached links to specific programs and information on their website.





Chartered Professional Accountants providing exceptional service in a timely manner.



Qualified Chartered Professional Accountants
Serving Grande Prairie Since 2004


Our team of friendly, knowledgeable, chartered professional accountants is dedicated to expertly serving the businesses of Grande Prairie, Alberta and the wider area. No matter your industry, the size of your team, or the age of your business, our knowledge and qualifications in business and tax accounting can take you where you need to go.

Our Services

We offer a full range of accounting services, tax planning, corporate and personal income tax return preparation, GST return preparation, estate planning, and everyday business advice. Whether you need the long-term support of a qualified business accountant or are just looking for some assistance with your GST returns, trust in the chartered professional accountants at Deverdenne Davis Cyr LLP to deliver the highest levels of quality and professionalism.


We are dedicated to providing your business with the best possible service, with the levels of effective planning and integrity that you would expect from a firm handling your financial affairs. We work closely with a number of Tax Accountants and Tax Specialists in Grande Prairie and throughout Alberta to ensure that all your tax needs are being met. We use a number of professionals who specialize in different areas of federal tax, provincial tax, GST and PST to ensure we can meet all your tax needs.

Our Values

Integrity

Above all else, our team is dedicated to honesty and transparency when it comes to our client interactions. We will always treat your business information with discretion and professionalism.

Collaboration

By choosing Deverdenne Davis Cyr LLP, you gain more than just the support of qualified chartered professional accountants - you are choosing to extend your business family. We work alongside our clients every step of the way, celebrating your success as our own.

Community

Deverdenne Davis Cyr LLP is proudly based in Grande Prairie, Alberta. We are committed to helping our community prosper, and we are pleased to sponsor a number of local organizations and events each year.

Environment

We are always looking for new ways to go green. Deverdenne Davis Cyr LLP is a paperless firm, with paper consumption reduced by 90% since 2008.

Call Us Today! 780-814-7474

2019 Remuneration

Higher levels of personal income are taxed at higher personal rates, while lower levels are taxed at lower rates. Therefore, individuals may want to, where possible, adjust income out of high income years and into low income years. This is particularly useful if the taxpayer is expecting a large fluctuation in income, due to, for example, an impending

  • maternity/paternity leave;
  • large bonus/dividend; or
  • sale of a company or investment assets.

In general, the employee must own or lease the SCDE and be responsible for its maintenance, alone or with other persons. However, a property that the employee neither owns nor leases may still be a SCDE if the employee pays expenses to, or for, the actual owner or tenant on a regular basis. Payments on a random or irregular basis in respect of the property would not be sufficient.

To exclude these allowances from income on the employee's T4 slip, Form TD4 Declaration of Exemption - Employment at a Special Work Site should be completed and retained with the payroll records in case CRA would like to review it at a later date. Both the employer and employee have sections to complete in the Form.

In addition to increases in marginal tax rates, individuals should consider other costs of additional income. For example, an individual with a child may receive reduced Canada Child Benefit (CCB) payments. Likewise, excessive personal income may reduce receipts of OAS, GIS, GST/HST credit and other provincial/ territorial programs.

There are a variety of different ways to smooth income over a number of years to ensure an individual is maximizing access to the lowest marginal tax rates. For example,

  • Taking more, or less, earnings out of the company (in respect of owner-managed companies).
  • Realizing investments with a capital gain/loss.
  • Deciding whether to claim RRSP contributions made in the current year, or carry-forward the contributions.
  • Withdrawing funds from an RRSP to increase income. Care should be given, however, to the loss in RRSP room based on the withdrawal.
  • Deciding on whether or not to claim CCA on assets used to earn rental/business income.

Note that for the 2019 year, the tax cost of dividends paid out to shareholders of a corporation that do not "meaningfully contribute" to the business may increase.

Year-end planning considerations not specifically related to changes in income levels and marginal tax rates include:

  1. Corporate earnings in excess of personal requirements could be left in the company to obtain a tax deferral (the personal tax is paid when cash is withdrawn from the company).
  2. The effect on the "Qualified Small Business Corporation" status should be reviewed before selling the shares where large amounts of capital have accumulated. In addition, changes which may limit access to the small business deduction where significant corporate passive investment income is earned should be reviewed.
  3. Consider paying taxable dividends to obtain a refund from the "Refundable Dividend Tax on Hand" account in the corporation. Recent changes may restrict the amount of refund received if "eligible" dividends are paid. Eligible dividends are subject to lower personal tax rates.
  4. Individuals that wish to contribute to the CPP or a RRSP may require a salary to generate "earned income". RRSP contribution room increases by 18% of the previous years' "earned income" up to a yearly prescribed maximum ($26,500 for 2019; $27,230 for 2020).
  5. Dividend income, as opposed to a salary, will reduce an individual's cumulative net investment loss balance thereby potentially providing greater access to the capital gain exemption.
  6. Recent tax changes may make it costlier to earn income in a corporation from sales to other private corporations in which the seller or a non-arm's length person has an interest. As such, consideration may be given to paying a bonus to the shareholder and specifically tracking it to those higher taxed sales. Such a payment may reduce the total income taxed at higher rates.
  7. Recent changes to the tax regime will likely require more careful tracking of an individual shareholder's labour and capital contribution to the business, as well as risk assumed in respect of the business. Inputs should be tracked in a permanent file. Dividends paid that are not reasonable in respect of those contributions may be considered "split income", and taxed at the highest tax rate. Several other exceptions may also apply.
  8. Recent changes will restrict access to the corporate small business deduction where more than $50,000 of passive income is earned in the corporation. Consider whether it is appropriate to remove passive income generating assets from the corporation and whether a shift in the types of passive assets held is appropriate. In some provinces it may actually be beneficial to have access to the small business deduction restricted. As many variables affect these decisions, consultation with a professional advisor is suggested.
  9. If you are providing services to a small number of clients through a corporation (which would otherwise be considered your employer), CRA could classify the corporation as a Personal Services Business. There are significant negative tax implications of such a classification. In such scenarios, consider discussing risk and exposure minimization strategies (such as paying a salary to the incorporated employee) with your professional advisor.

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Suite 109, 9824 - 97th Avenue
Grande Prairie, AB
T8V 7K2
Canada

Phone: 780.814.7474
Toll free: 1.877.814.7474
Fax: 780.814.7409

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