Equity Tax Credit increase


September 17th, 2009

Effective January 1 2010, the Nova Scotia government announced that they are increasing the Equity Tax Credit from 30% up to 35%.

With the rate hike, the Equity Tax Credit now gives you back 35% of your investment in qualifying small businesses, located in Nova Scotia.  The maximum rebate you can now receive per year is $6,125, on an investment of $17,500.

What kind of businesses qualify for the Equity Tax Credit?  Well, they must be an active company, located in Nova Scotia, with sales and assets of less than $25 million.  And they have to apply to the Nova Scotia government, in advance, each year before their share offering.  The Equity Tax Credit is a very popular credit with co-operatives who are looking for investors.

If you are an individual looking for more information, go here:  http://www.gov.ns.ca/finance/en/home/taxation/personalincometax/equitytaxcredit/equitytaxeligibilityforinvestors.aspx

And if you are a business interested in applying for eligibility, go here:  http://www.gov.ns.ca/finance/en/home/taxation/personalincometax/equitytaxcredit/equitytaxeligibilityforbusinesses.aspx

Filed under: Business tax, Personal Tax by David Boese No Comments »




UPDATE:  click on this link for current ordering information.

I talked a few weeks back about how to register for the ROE Web service. ¬†Many employers still prefer the old paper Record of Employment (ROE) forms. ¬†And many people seem to have a bit of trouble with finding out how to order these forms. ¬†I’m posting a link here that should help the cause. Each province has their own telephone number.

Also, when you call there is a good chance you will talk to an answering machine, not a real person.  So be prepared in advance to give your payroll number, your business name and address, and be ready to state how many forms you want.

http://www.servicecanada.gc.ca/eng/ei/employers/order_roe.shtml

I still recommend that you register for the ROE Web service. ¬†It’s so much nicer!

Filed under: Other tips by David Boese 1 Comment »




Premier Darrel Dexter made good on one of his election promises today, by announcing he was removing the provincial portion of HST from all residential electricity.  Effective October 1, the HST rate on electricity will drop from 13% to 5%.

Previous to this anyone who heated their house with electricity qualified for this rebate.  Premier Dexter has apparently now decided that everyone will qualify for the rebate.

Filed under: Consumer Tax by David Boese No Comments »




Ok, that’s a tacky heading, I freely admit. ¬†But it’s for real. ¬†Read on.

Pensioners have been able to do what’s called Pension Splitting for the last two tax years. ¬†In a nutshell, pension splitting means that you can split your pension with your spouse. ¬†Suppose one spouse has a sizeable pension, and the other spouse has little or no income. ¬†By splitting half that pension with the low income spouse, you can achieve some serious tax savings. ¬†In the most extreme case (e.g. one spouse with a very large pension, the other spouse with zero income) the tax savings could be as much as $10,000. ¬†Per year.

The amazing thing is that there are some seniors who qualify for this, and don’t know about it. ¬†I’ve had several new clients this year who missed out on it last year, simply because they weren’t aware of it. ¬†I was able to adjust their taxes to get them back some very large refunds.

So if you think you or your relations may qualify, and aren’t claiming it, don’t delay. ¬†You can read more about this here:

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/pnsn-splt/menu-eng.html

Filed under: Personal Tax by David Boese No Comments »