How to read the Income Tax Act

Continuing the new post series where I answer readers’ questions they’ve Googled to find my site, as logged by 103bees.com, the next one is sent chills down my spine: “How to read the Income Tax Act?”

The last time I cracked open the Act, it was probably tax class in university. Once you’re done those classes, there’s really no need to delve into the swirling mass of dense legalese again. There are many more comprehensible sources for tax information, so don’t read the Income Tax Act. In its place, do these things:

  • Read the Canadian Revenue Agency’s website. They write about tax in plain English (most of the time) and it’s reliable information since it is from the source.
  • Read accounting firm websites. All the major firms have sections on their websites that offer regular tax facts and updates, detailing bits of tax law applicable to your situation, whatever it may be. Again, plain English (for the most part, although we do tend to introduce jargon from time to time).
  • Read tax textbooks. I still do this when I want a refresher. Textbooks are occasionally dense, but usually still much easier to read and understand than the Act.
  • Call in to tax related TV call-in shows. These seem to be on regularly, on CityTV especially and other fringe channels that predominantly have call-in shows. They feature knowledgeable experts sharing advice for free.
  • Use tax software. If you own one of the tax packages people use to do their own taxes, these can be used to answer your questions in a meaningful way: with your numbers, or with dummy data as examples.

Reading the Act is best left to the professionals who have specialized in tax. As you can see, there are many alternatives, most of which are available on the web, that the average person can use instead to find guidance on any particular issue.

IT audit training for me this week

This week I have a small reprieve from my duties as auditor, as I’m taking part in a training course put on by the firm at the Hilton. The training is related to the internal Information Systems specialization the firm offers, which will allow me to get more experience working with IS at clients and hopefully provide a jumping off point to the CISA designation next year.

I’m pretty excited about the opportunity, since training like this doesn’t come around too frequently. I had to pester a few key people at the office to get into the course, but it’ll be worth it. I think it will be perfect for someone with my interests and aptitude!

Not only that but the past couple weeks have been two of the busiest I’ll have all year. It’s no surprise then that blog post frequency has suffered as a result. But the end is in sight and things should ease up soon.

Capital gains exemption limit increased to $750,000

As of March 19, 2007, the capital gains exemption has been increased to $750,000 from its previous $500,000 limit. This means that if you haven’t already taken advantage of the tax preferred treatment of capital gains on qualified small business shares, you should do so while the getting’s good. If you have already maxed out your $500,000, you have an additional quarter million to play with.

EditGrid betas Excel plugin

From a reader comes news that EditGrid has launched a private beta for an Excel plugin for offline work on spreadsheets. Pretty cool, as Mashable explains:

As there are several levels of integration, the whole of the integration is rather seamless — it takes no time to load sheets from EditGrid to Excel, and you can work offline if need be and update at a later time.

EditGrid made the announcement on their official blog:

When people think of compatibility across spreadsheet applications, people tend to think of fidelity — whether the spreadsheet file exported from one application can be imported into another application without loss of quality or detail. While EditGrid has been doing pretty well in this arena, we are not satisfied with this — exporting spreadsheet data from EditGrid into a file means that the data have become “offline”. It means that the user loses something — the ability to get real-time updated data and collaborate with each other online — that the user is entitled to on EditGrid.

It’s a huge step on the way to mainstream usage in industry. I didn’t see this coming, but now that I’m aware of it, it seems like such an obvious extension to the previously strictly online app.

Sign up for the private beta and give the future of spreadsheets a whirl.

Big Four and Mintz again part of Top GTA Employers list

The Toronto Star has released the 2008 edition of their Greater Toronto’s Top 50 Employers list, and it is no surprise that accounting firms are well represented once again.

All four of the largest accounting firms, the Big Four, made the list, along with a local single office firm, Mintz & Partners.

The reasons why they made the list are similar, with most touting days off to study for the UFE, personal days on top of regular vacation, support for families and volunteering, and matching RSP contributions.

Still no mention of 20% time for personal projects though.