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NO SOUP FOR YOU! Employees earning commissions need to go on a diet, implies CRA

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  • “NO SOUP FOR YOU” appears to be the message of the day from the Canada Revenue Agency (CRA) regarding business luncheons involving employees earning commission.

    This is a case of “don’t shoot the messenger”, I am only here to inform you, so please, holster your weapon.

    Consider the following scenarios:

    1) A corporation that takes out a client for lunch and has a salesperson attend and reimburses the cost will be able to deduct the expense of the meal, subject to a 50% cap on the expense and will not create a taxable benefit to the employee. (See: Guide T4130)

    2) A self-employed individual or partnership has the same benefit as in the first point.

    3) A self-employed commissioned agent, like insurance, or real estate, also has the same benefit.

    4) A transport employee that doesn’t receive an allowance, also has the same benefit of the above (subject to additional calculations and restrictions)

    5) A corporation provides a $17 meal allowance for an employee that is travelling away from the office, but still inside the metropolitan area, where the corporation is the primary beneficiary of the allowance, and the allowance is not an additional form of remuneration – receives the same treatment, and is non-taxable to the employee.

    But heaven forbid if you are a sales employee on commission, working in town, claiming your own expenses. If so, you only get to claim the meals that your client consumed up to the 50% cap and there is ‘no soup for you.’

    At the October 5, 2018 Association de planification fiscal et financière (APFF) [Tax and Financial Planning Association] Annual Congress in Gatineau, Quebec, the CRA pointed out that the 50% cap on meals expenses in Subsection 67.1(1) applies to the meal expense incurred, however Subsection 8(4) denies any deduction for the commissioned employee’s portion of those meals.

    Thus, if the commissioned employee takes one individual client out for lunch, and they eat the same thing, the commissioned employee only gets 25% of the meal receipt as a deduction.

    So from now on, Edmonton based commission employees will need to eat in Calgary and stay the night, and Calgary-based commission employees will need to eat in Edmonton and stay the night, because according to the the Department of Finance, and CRA’s interpretation, that makes good business, and tax, sense.

    Cory G. Litzenberger, CPA, CMA, CFP, C.Mgr is the President & Founder of CGL Strategic Business & Tax Advisors; you can find out more about Cory’s biography at http://www.CGLtax.ca/Litzenberger-Cory.html


    The CRA’s unofficial translated preliminary comment is below:

    “Paragraph 8(1)(f) provides that a taxpayer who was employed in the year in connection with the selling of property or negotiating of contracts for the taxpayer’s employer, may deduct in computing the taxpayer’s income amounts expended by the taxpayer in the year for the purpose of earning income from the employment subject to certain conditions provided for in that paragraph.

    Furthermore, subsection 8(4) provides, in particular, that amounts expended by an employee on a meal of the employee may not be deducted under paragraph 8(1)(f) unless the meal was consumed during a period while the taxpayer was required by the taxpayer’s duties to be away, for a period of not less than 12 hours, from the municipality where the employer’s establishment to which the taxpayer ordinarily reported for work was located and away from the metropolitan area, if there is one, where it was located.

    There is nothing in the Income Tax Act that allows the CRA to not apply subsection 8(4) where an employee’s meal was not consumed during a period while the taxpayer was required by the taxpayer’s duties to be away, for a period of not less than 12 hours, from the municipality where the employer’s establishment to which the taxpayer ordinarily reported for work was located and away from the metropolitan area, if there is one, where it was located”


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    Business News

    All Chamber members invited to 125 Anniversary Open House this Friday!

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  • Chamber celebrates 125th anniversary

    On March 17th the Red Deer & District Chamber of Commerce will celebrate its 125th anniversary.

    In 1894 the Red Deer Board of Trade was established and set its first goal to establish a municipal government for the area.  By 1901 Red Deer was incorporated as a town.  As time went on the Board of Trade become more heavily involved in improving Red Deer’s position and eventually became involved in national issues.  By 1953 the Board of Trade had experienced such growth that a decision was made to officially change its name to the Red Deer Chamber of Commerce.

    The Chamber plans to spend a good part of 2019 promoting their roots in the community and historical significance at their events and through marketing efforts.  “We have several things planned this year that tie in to our 125 year anniversary.  Including our 125 year brand that is a replicating the original Welcome to Red Deer sign from the 1960s.  The Chamber has been a pillar in the community and instrumental in helping shape Red Deer into the vibrant city it is today” says Rick More, CEO, Red Deer & District Chamber of Commerce.

    The Chamber invites their members to join them on March 15th from 2-4pm at their open house to kick off the celebrations.  Members and the public can watch for their communications throughout the year and can follow them on social media through their Facebook: www.fb.com/RedDeerChamber and Twitter: @reddeerchamber

    The Red Deer & District Chamber of Commerce is a collaborative leader in building a globally significant region and a vibrant community.


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    Entertainment

    Great Slate of Guests Coming to the Red Deer Home Show!

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  • The Red Deer Home Show is back once again for 2019!

    Over 280 vendors will be on hand to provide Central Albertans with new products and services, ideas and décor in Canada’s hottest economic region!

    Be sure to also check out a few of this year’s excellent speakers and celebrities- they’ll be talking everything from gardening, to home organization to senior living!

    Here are your 2019 speakers and when they’ll be taking the stage:

    Donna Balzer- One of Western Canada’s Top Gardeners

    Garden expert, regular guest on CBC radio in Alberta and host of internationally aired Bugs & Blooms on HGTV.

    Donna brings garden inspiration and practical insider information to get you growing your own vegetables this season.

    You will learn: The basics of garden design, selecting plants and choosing containers that are right for you plus the secret to growing pest-free food. Learn tips and tricks to grow great vegetables in 2019.

    Saturday, March 16 at 2:30pm

    Sunday, March 17 at 11:30am

    Learn more about Donna here: www.donnabalzer.com

     

     

     

    Chelsie Anderson- Garden Gratitude Throughout the Seasons

    Regular CBC Radio “The Home Stretch” contributor, Chelsie understands gardens from a lifetime of hands-on experience. She has been the owner and operator of her gardening business “Garden SOIL-utions” for over a decade where she passionately tends to existing gardens and installs new ones with inspiration. In addition to her CBC appearances, Chelsie is frequently in the media; on CTV News, Global News, and gets many a mention in the Calgary Herald. She also sells red wiggler worms and their poop, known as castings, to gardeners who love the soil as much as she does. Beautiful plants start from the ground up!

    Sunday, March 17 at 1:30pm

    Learn more about Chelsie here: www.chelsiesgardens.com

     

    Terry Hollman- Organizing Your Home

    As President of the Red Deer based company, Canadian Closet, Terry knows a little bit about helping Central Albertans get organized and de-cluttered. When setting New Year’s resolutions, getting organized is in the top 10 and is often a repeated goal throughout the year. Terry will provide advice, solutions and visuals during this presentation to explain the best solutions for organizing areas in the home.

    Attendees will be motivated to tackle closets, kitchens, pantries, garages, and more with practical, functional, and sensible ideas for keeping the home organized.

    Saturday, March 16 at 11:30am

    Carol Kelly- Healthy Yards

    Healthy yards mean healthy for you as landowner, your community and local wildlife. This casual presentation will introduce you to Medicine River Wildlife Centre, learn how they can help you and how you can take simple steps to mitigate any conflicts or injuries concerning wildlife in your yard.

    There will also be time to visit with Fang, the Centre’s education skunk, and ask any questions you may have.

    Sunday, March 17 at 2:30pm

    The BILD Team- Thinking about Buying a New Home or Renovating your home? Questions to ask before you hire your next contractor?

    Need to hire a home builder to build your new home or a contractor for your next renovation project?  Interviewed by Lisa Buckingham, from questions provided by the audience, Derek Fredeen, Andrew Wiebe and Kevin Wilkie will offer tips for selecting and working with a qualified professional before you start your search. This is a Q&A panel discussion so bring your questions, pens and paper.

     

    Saturday, March 16 at 3:45 pm. 

    Audience members will receive a free home show admission ticket to return on Sunday. With information provided by the panel, we only thought it fair to give you the chance to return on Sunday armed and ready to ask more questions to the trades participating in the show. Sponsored by BILD – Central Alberta

    Ellen Walker- How to Alleviate Stress and Make Your Home Work for You

    Ellen will go through some steps in the interior design process so that your home reflects you, and how a professional Interior Designer can achieve your vision while reducing the stress on you.

    Saturday, March 16 at 1:00pm

     

     

     

     

    Sue West, Isabelle Setter and Karen Patzer- Senior Living By Design

    Join Sue,  Isabelle, and Karen, from Timberstone Mews, Christenson Developments,  in a presentation and discussion on senior “Lifestyle Innovations & Resident-Centred Services”.

    Friday, March 15 at 6:00pm

     

     

     

     

    The 2019 Red Deer Home Show

    Dates and Times:
    Friday, March 15 – noon to 8:00pm
    Saturday, March 16 – 10:00am – 6:00pm
    Sunday, March 17 – 10:00am – 5:00pm


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    march, 2019

    fri8mar - 30aprmar 85:30 pmapr 30Real Estate Dinner Theatre5:30 pm - (april 30) 10:00 pm

    sat30mar - 31mar 3010:00 ammar 319th Annual Central Alberta Family Expo10:00 am - 5:00 pm (31)

    sat30mar1:00 pm- 4:00 pmMAGSaturday @ the MuseumMAGnificent Saturdays welcomes all ages and abilities to participate in a fun art project every week! 1:00 pm - 4:00 pm

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