March 22, 2022
Canada’s Most Prominent Tax Training Firm Interviews Thom Damstra On The Tax Consequences Implications Of Cellphones : Work From Home & Company Provided
VideoTax News is Canada’s oldest and most prestigious tax training firm. They have trained well in excess of 20,000 Accountants, Book Keepers, Tax Preparers and CRA Auditors on the consequences and implications of changes in the Canadian tax code.
They are seeing increased audit activity, as reported by their members and clients.
Given the fact that virtually every tax payer has a Smartphone and that they are using a Smartphone for both business and personal, the ramifications of what mobilityView is doing is significant and impactful to every Canadian that is earning an income.
The nature of Work From Home is such that there is going to be an increased need to separate your business costs from your personal costs especially when the item/object/location is being used for both purposes.
It is why the CRA has now for the 4th time (Jan 4th 2022) updated the taxable benefit of a company provided Smartphone and for the 1st time on Company Provided/Paid For Home Internet : https://lnkd.in/dTa8KhAq
It is also why from an HST perspective they have updated their policy on at least 3 occasions making VERY explicit the need to only be claiming the documented and substantiated BUSINESS only portion of the HST as an ITC. So only the business portion of a company’s cellphone may be claimed as an HST ITC, and not the full amount (updated January 2022) : https://lnkd.in/gz-TVbX
The CRA is aggressively increasing its audit activity across the board. Per the interview, Smartphones are low hanging fruit for any auditor to get a win on the board to meet their revenue quota targets. It would appear that cellphones are now a standard audit item (company or personal) in any company audit, as evidenced by the audit letter received by Jamie Golombek.
It is no surprise that Jamie Golombek (Canada’s foremost tax journalist and writer for the National Post) wrote in February that his receipts were not accepted by the CRA (Smartphone and Home Internet) as being adequately documented to substantiate the business vs. personal portion : https://lnkd.in/dpD2GgVV
Tim Cestnick (tax journalist for the Globe & Mail) wrote in May of 2022 warning Gig Workers that the likelihood of an audit
(revenue and expenses like cellphones) had gone up dramatically due to GigEconomy being a focus area of audit activity for the CRA : https://lnkd.in/g6ME-N6
It is one of the reasons why we invented
Time Machine for companies, their employees, and Gig Workers/Contractors/Freelancers : Reduce your audit risk and the associated interest &
penalties levied by the CRA : https://lnkd.in/dG5MPP3X
Some Interesting Market Research We Have Done :
75% of employees never want to go back to an office Monday to Friday 9am to 5pm : https://lnkd.in/gQzqrcTX
On average employees wish to work 3.5 days per week at home : https://lnkd.in/gsH6-xSN
59% of employees get neither a phone nor reimbursement for BYOD : https://lnkd.in/gpxr4HC
80% of employees get neither home internet provided for them nor get reimbursed : https://lnkd.in/gpxr4HC
90% of employees feel they should be reimbursed for the business use of their personal IT assets : https://lnkd.in/gXFZzts7
Before the pandemic & WFH started - Class action lawsuits for failure to adequately reimburse were spiking : https://lnkd.in/g4kJyBj
Featured By Forbes For US (corporate tax deduction calculation) & Canadian tax consequences (taxable benefits & HST) of a company provided phone : https://lnkd.in/gbN95Bz8
30 Second Explainer Videos Of What We Do :
Would you like to get reimbursed for previous year's usage and cost? How about a tax deduction for 2021? Are you a WFH Employee/Gig Worker? Watch our Time Machine video : https://lnkd.in/ekw6Kphm
Save $1,500 Annually On Cell Bills : https://lnkd.in/duqD-mfX
Canadian Gig Workers : https://lnkd.in/gS7isHgh
US Gig Workers : https://lnkd.in/gVA8g9Xr
Australian Gig Workers : https://lnkd.in/geT95ZTM
Employer cost savings : https://lnkd.in/ggHFZaE
Employee & Gig Worker tax deduction : https://lnkd.in/gD5eEke
Smartphone global tax trends : https://lnkd.in/gzFkRae
Free 30 Day Trial Of Mobile Cost Management (Promo Code : mVI01) : https://lnkd.in/gPNsmaB7
Purchase Here : https://mobility-view-apps.square.site/
Link To VideoTax News Interview : https://www.videotax.com/web-tips-articles/watch-w...