SPRING 2013 Connect with us on Social Media

IN THIS ISSUE... Over the past few months, we have developed and launched Twitter, LinkedIn, and
Facebook profiles to better communicate with our audience and loyal clients. We invite
Connect with us ............................. 1
you to join us as we continue to develop new and interactive ways of providing you
It’s That Time Again .................... 1 with up to date information. If you are presently using Twitter, LinkedIn, or Facebook,
It’s That Time Again con’t ... 2 we encourage you to “FOLLOW” us on Twitter, “FOLLOW” us on LinkedIn, and “LIKE”
us on Facebook.
Giving Back ....................................... 2

New Managers ...............................
New Partners ...................................
Retiring Stalwarts ........................
Retiring Stalwarts con’t ......... 6
Deductions 2012 .......................... 6
Deductions 2012 con’t .......... 7
Deductions 2012 con’t .......... 8
3 We understand that time and delivery of information is very important in this fast-paced
technological world in which we live. Utilizing these new social media platforms will
4
allow us to more easily and quickly provide you with news in a variety of accounting
5 fields, important updates on government regulations, and changes in industry related
information.
If you don’t have Twitter, LinkedIn or Facebook, don’t worry. We are in the process of
re-developing our existing website where you’ll be able to subscribe to and receive our
newsletters, online publications and blog posts via email.

Stay tuned as we work towards providing you quicker more efficient methods of
VANCOUVER OFFICE sharing vital information.

11th Flr, 1050 West Pender St

Connect with us today!
Vancouver, BC
V6E 3S7
Canada
Phone: 604.714.3600
It’s That Time Again
Fax: 604.714.3669 Make sure you can find all the documents supporting income and expense claims for
Web: manningelliott.com your personal income tax filing.

Yes, it’s already time to start reviewing your paperwork to prepare your personal
A BBOTSFORD OFFICE
income tax return for 2012. There are hundreds of areas to consider, but here are a few
201– 2001 McCallum Rd
situations that affect the owner-manager.
Abbotsford, BC
V2S 3N5
Ensure All Source Documents Are Available
Canada
Phone: 604.557.5750
Owner-managers should take a business-like approach to their personal returns. Many
Toll Free: 604.857.9509
factors combine to determine the amount of income tax payable; for example, personal
Fax: 604.850.7399 exemptions, investment tax credits, pension deductions, new home buyer credit,
Web: manningelliott.com Canada employment amount, etc.
 It’s That Time Again...cont’d
The list is extensive, but the bottom line is that you want to benefit from all potential
deductions and tax credits. This is where your Manning Elliott team member can help you.
Just ensure that you keep all relevant documents throughout the year so you are well
prepared when your income tax filing is due. Incomplete documentation may create
needless expense when your CA has to bring the missing documents to your attention and
you have to spend time looking for them. Should a CRA audit find expense claims
unsupported by original documents, it may disallow the claims and charge you interest on
reassessment. The more information you can provide to your accountant, the more likely
any available tax savings will be maximized.

Over $39,000 raised for the United Way

Each year, Manning Elliott asks its team members to support the United Way of the Lower
Mainland & United Way of the Fraser Valley. We do this because we believe in the United
Way’s ability to make a real and lasting difference in our community.

As in previous years, we believe the most effective way to finding solutions to community
problems is by working together. We at Manning Elliott are very proud of our United Way
track record. We raised a total of $39,671 in our 2012 campaign. We hope to exceed that
The United Way has worked for
amount this year. The annual campaign not only raises awareness but builds team spirit
over 80 years to prevent social
through various team activities. Our 50/50 draw, potluck lunch, jeans days, bake sale, silent
problems such as child poverty,
auction, and pie throwing activities engaged our team members from all levels to raise
bullying and senior isolation in
awareness for a great cause.
the Lower Mainland. Working
with 160 community partners,
Changing the life of someone in our community is one of the greatest feelings you can ever
the United Way funds about 500 have and one of the greatest gifts you can provide.
programs each year to create a
better future for children and
seniors.
New Manager Appointments
We are very pleased to announce that there were several promotions of team members at Manning
Elliott in 2012. Alison Collins, David Reznick, Jason Moon, Jennifer McEwan, Jody Hatto, Nina
Turkiewicz and Tara Hauck have all been recognized for their significant contributions to our firm.

David Reznick was promoted to Senior Manager in our Abbotsford office . David provides
accounting, assurance and tax services to businesses in a wide range of industries. He enjoys
sharing what he knows with his clients by educating and mentoring them when appropriate
opportunities arise. His thoughtful approach to client relationships and his attention to detail are
highly valued by clients, business associates and his Manning Elliott team.

Jason Moon was promoted to Senior Manager in our Tax Department. Jason specializes in David Reznick, CA
personal and corporate income tax issues and provides tax minimization strategies for estate
planning. Jason has served clients in a wide range of industries including real estate, retail, Senior Manager
construction and professional services.

Jody Hatto was promoted to Senior Manager. Jody, too, is a member of Manning Elliott’s Tax
Department and has several areas of tax focus: individual tax, owner-managed businesses,
estates, and expatriate tax. She has worked with clients in a variety of industries including food
services, construction and real estate.

Join us in congratulating Jody for being the 2012 recipient of the Society of Trust and
Estate Practitioners (STEP) Award for the Highest Mark in Taxation of Trusts and Estates
diploma course. Jody scored the highest mark out of 23 exam writers across Canada.

Jason Moon, CA
Alison Collins was promoted to Manager in our Vancouver office. Alison specializes in private
company advisory, taxation and assurance services for clients in the construction, real estate,
Senior Manager
insurance, investment and professional services industries.

Jennifer McEwan was appointed to the position of Manager, Internal Accounting. Jennifer is a
member of Manning Elliott’s administration team, with responsibility for overseeing all aspects of
the firm’s internal accounting.

Nina Turkiewicz was promoted to Manager in our Vancouver office. Nina specializes in private
and public company assurance including both U.S. and Canadian public companies. She began
her accounting career as an articling student with Manning Elliott in 2008.

Tara Hauck was promoted to Manager in our Tax Department. Tara specializes in tax
compliance and advisory services primarily focusing on owner-managed private company clients. Jody Hatto, CA
Senior Manager

Alison Collins, CA Jennifer McEwan Nina Turkiewicz, CA Tara Hauck, CA

Manager Manager Manager Manager
 New Partner Appointments
New Partner: Paul Leedham, CA, CGA

Paul provides accounting, assurance, and business advisory services with a focus on
serving clients operating in the technology, life sciences, mining, and venture capital
industries. His clients range from entrepreneurial start-ups to large-scale diversified
organizations.

Paul has led both local and international auditing engagements for publicly listed
companies trading in Canada and the United States. He has provided consulting services
for the implementation of International Financial Reporting Standards and has helped
clients comply with continuous disclosure and prospectus filing requirements. Paul also
Paul Leedham, CA, CGA works with a number of private and not-for-profit organizations.
Partner
Paul obtained his Certified General Accountant designation in 2001. He achieved his
Chartered Accountant designation in 2005 and is a CA School of Business case
Contact examination marker and student mentor.

T: 604-714-3685
After spending time in industry, working with a mid-sized accounting firm and then a large
E: pleedham@manningelliott.com
international accounting firm, Paul joined Manning Elliott in 2011.

Clients appreciate Paul’s sensible, realistic and down-to-earth approach to arriving at

practical and feasible solutions to their business needs.

New Partner: Harvey Peters, CA

Harvey provides accounting, taxation and advisory services, primarily to owner-managed

private companies and not-for-profit organizations. His clients range from incorporated
professionals such as doctors, lawyers, engineers and architects to business professionals
working in an array of diverse industry sectors.

Harvey has been with Manning Elliott since January 2013. Throughout his career, which
spans over 25 years, he’s been a big proponent of providing the best possible client
experience. Harvey believes in working with clients to provide solutions beyond their
accounting needs. His commitment to personalized service and client satisfaction make
Harvey Peters, CA him a consummate professional.
Partner
Harvey obtained his CA designation in 1999 and was a partner in a mid-sized accounting
firm before joining Manning Elliott. In addition to being a member of the BC Institute of
Contact Chartered Accountants, Harvey has also served as the treasurer for the Ridge Meadows
Hospital Foundation and the Surrey Foundation. He has also taught part-time at the British
T: 604-714-3683 Columbia Institute of Technology.
E: hpeters@manningelliott.com
Farewell To Three Stalwarts
Farewell: Robin Elliott, FCA
Manning Elliott is sad to announce the retirement of Robin Elliott, yet proud to have had him
as a valuable partner of the firm for over three decades.

Robin’s accounting career spans over forty years, during which time he’s contributed to
numerous initiatives and achieved several honours from distinguished industry associations.
In 1991, Robin was elected as a Fellow of the British Columbia Institute of Chartered
Accountants. This specific honor is one which Robin holds dear to his heart, due to its
prestige and rarity. He also served as president of the Institute of Chartered Accountants of
British Columbia in 2003. Throughout his illustrious career, Robin also found the time to
serve as an executive on the University of British Columbia Alumni Association as well as
Robin Elliott, FCA
being president of various community organizations.
Partner Alum
Some of the relationships Robin has built throughout the years reach back to his childhood.
He grew up in the same neighbourhood as former Manning Elliott partner alum Bob Tulk.
Robin has always strived to provide all of his clients with exceptional service, some of which
he’s known since the tender age of two. He will miss all of his colleagues, clients and
friends he has made over the years and hopes to visit the firm every now and then. There is
one aspect of his daily routine he will definitely not miss, and that is completing time sheets!

Robin’s advice to young accounting professionals is to not only work hard, but also get
involved with your surrounding community and get to know your clients and peers on a
more personal level. Robin has always believed that community involvement and
volunteerism is essential to one’s development and success.

In his retirement, Robin will work on his golf game and continue to stay active within his
community.

Farewell: Berni Frambach, CA

Manning Elliott also bids adieu to Berni Frambach as he moves into retirement. Berni has
been with the firm since 1972.

As a respected and eminent member of the Manning Elliott partner group, Berni contributed
immensely to the growth and success of the firm. He has helped the firm become one of
the largest mid-sized firms in British Columbia. He played a vital role in the merger and
formation of the present firm, Manning Elliott, and served as Chair of the firm’s Manage-
ment Committee for over ten years.

Berni has found his work to be fully satisfying as well as intellectually stimulating. His Berni Frambach, CA
advice for young accounting professionals is to look at the accounting profession as more
Partner Alum
than just numbers. What others see as just numbers is what accountants see as a form of
communication. If you are willing to put in the hard work and time you will be well
rewarded.
 Berni will miss seeing all of the friends he has made throughout the years, but like Robin, he
will certainly not miss completing those dreaded time sheets.

During his retirement, Berni is looking forward to having a little more free time to finish
various household projects and to travel more frequently. His approach to retirement is
simply to “take everything in stride.”

Farewell: John Sims, FCA, TEP

Manning Elliott would also like to announce the retirement of partner John Sims. John has
been an asset to our firm and mentor to our young professionals and will be greatly missed
by all colleagues, clients and friends.

John knew that he wanted to be an accountant from the time he took his first bookkeeping
class in high school. He graduated from Simon Fraser University in 1968 and earned his
Chartered Accountant designation in 1972. John’s work ethic, dedication and commitment
to his craft earned him the prestigious “CA of the Year” award in 1999, and his Fellowship in
2004 from the Institute of Chartered Accountants of British Columbia.
John Sims, FCA, TEP
He attributes much of his success and spirit of volunteerism to his loving wife Barbara, who
Partner Alum has stood by him and supported his career for over forty years. Throughout this time, John
has been involved with many charitable organizations, including currently serving as a board
member and treasurer of Special Olympics British Columbia and many committees and
councils of the Institute of Chartered Accountants of British Columbia.

John has built many long lasting relationships and friendships over the years, and offers the
following advice to young accounting professionals beginning their career.

“Networking and getting involved in your community is the key to a successful career. In
order to be successful in this city, you must know and call upon at least 1000 people.”

In his retirement, John hopes to see more of his grandchildren, sneak in the odd fishing trip
while vacationing at his cabin, and spend as much time as possible with his loving wife and
family.

Deductions 2012
Knowing your eligible deductions and tax credits can keep you from overpaying your
income taxes.

It is no secret that the best way to keep your income taxes to a minimum is to know which
tax deductions and tax credits are available to you. It’s up to you to know this. Canada
Revenue Agency is under no obligation to inform you of any eligible deductions or credits
you may have overlooked in your filing.
Deductions 2012...cont’d

Definitions: Tax Deductions and Tax Credits

A tax deduction is an amount that can be subtracted from gross income to give you the
taxable income that determines your tax rate. A tax credit, on the other hand, is an amount
subtracted from the dollar amount of tax calculated by applying your tax rate to your
taxable income. A tax credit is actually more valuable than a deduction because it reduces
the tax payable dollar for dollar. A deduction only reduces the percentage tax rate
applicable to your taxable income.

Union Dues
Many individuals forget to provide their tax advisor with receipts for union dues paid. Union
dues can add up to large amounts, especially if an employee has belonged to a number of
unions over the same year.
Annual dues that should be claimed include:

• dues for membership in a trade union;

• dues for membership in an association of public servants;
• professional board dues required under provincial or territorial law;
• malpractice liability insurance premiums or professional membership dues required
to maintain the taxpayer’s professional status;
• parity or advisory committee dues required under provincial or territorial law.

Public Transit
Canada Revenue Agency allows employees who commute to and from work a deductible
expense for passes allowing unlimited travel within Canada on “local” buses, streetcars,
subways, commuter trains or buses, and local ferries. One-way tickets are not considered
deductible as they do not provide unlimited travel. However, deductions are available for
travel passes of at least five days’ duration if the taxpayer purchases passes for at least 20
days in a 28 day period. An electronic payment card that provides a receipt creates an
allowable deduction if at least 32 one-way trips are made within a continuous 31-day
period.

Children’s Arts and Fitness Amounts

Two areas frequently misunderstood by many taxpayers are the Children’s Arts Amount
and the Children’s Fitness Amount. Each program allows a claim of up to $500 per child
under age 16 (under 18 if the child is eligible for the disability amount) for fees paid in the
calendar year. Many taxpayers believe the $500 is a direct deduction from earned income,
which is not true. These fees are tax credits. Both the fitness and the arts amounts are
subjected to a federal tax credit of 15%; therefore, the actual reduction against income tax
is $75 (i.e., 15% of $500). Depending on the province of residence, additional provincial
deductions may be available.

There are situations in which the fitness/arts amount may be commingled with child care
cost. If it is not possible to differentiate between the two, the child care amount must be
claimed first. Residual amounts up to $500 are then claimed as a fitness or arts amount.

Children’s Arts and Fitness Amounts are tax credits, not deductions.
Deductions 2012...cont’d
Moving Expenses
The costs of moving is an area often overlooked by taxpayers. Deductions for eligible
moving expenses are incurred when a taxpayer moves and establishes a new home at least
40 kilometres closer to the place of new employment, business or educational institution.
Deductible expenses include:

• transportation and storage costs (such as packing, hauling, moving, in-transit

storage, and insurance) for household effects, including items such as boats and
trailers;
• travel expenses such as vehicle expenses, meals, and accommodation incurred to
move to the new residence;
• living expenses for up to a maximum of 15 days for meals and temporary
accommodation near the old and the new residence for the taxpayer and members of
their household;
• lease cancellation costs for the former residence;
• other costs such as change of address, change of address on legal documents;
replacement of drivers licences, utility disconnect and hookup costs and the cost of
maintaining the old residence to a maximum of $5,000 for interest, property taxes,
insurance, as well as heat and other utility expenses. (If you were renting the previous
residence, these costs cannot be deducted.);
• costs associated with selling the old residence. Advertising, legal fees, real estate
commissions and early mortgage payout are the major expenditures allowed. Legal
fees, transfer fees, or the registration cost for the new residence are also deductible.

Carrying Charges and Interest Expenses

Those who earn income from investments are entitled to deduct carrying charges and
interest paid to earn income from investments such as the following:

• management fees (RRSP/RRIF administration fees are not allowed);

• safety deposit box cost;
• interest paid on money borrowed for investment purposes as long as the investment
is for the purpose of earning investment income in the form of interest or dividends. If
the interest cost is incurred to create capital gains, the interest is not a deductible
expense;
• if interest was paid on an insurance policy to earn income, the interest is deductible
as long as the insurer completes, before the tax return is due, form T2210 Verification
of Policy Loan Interest by the Insurer;
• interest charged for investments within a Tax Free Savings Account (TFSA) or a
Registered Disability Savings Plan is not deductible.

Always Consult with your Manning Elliott Tax Specialist

Please note that this article highlights only a few of the many, many tax deductions and
credits available to taxpayers. It is always prudent to have your Manning Elliott tax specialist
complete your return.