Hi everyone,
A new client. He has a business number with …RM0001. I understand that this RM stands for import & export business, but how would we report it in tax cycle. Which form will be used to report this income.
Really appreciate your early reply.
Thanks
T1, T2125 if the business is unincorporated; T2 if incorporated.
Same form T2125 if the business is personal not incorporated
Whatever the situation, an engagement letter should not be signed and accepted by the practicing professional accountant unless the service provider is confident of competency in all functions (including the technical and legal requirements) requested by the member of the public. (In this jurisdiction, Rule 203 of the Code of Professional Conduct).
Care should be taken, particularly where the client is apparently unaware of significant matters with significant consequences, such as compliance with section 230 of the Income Tax Act.
If the client has produced the relevant records pursuant to S230 of the Income Tax Act, the appropriate normal Financial Statements and flowing appropriate normal tax treatment should be readily apparent to the practicing professional tax practitioner. In this case, there are likely to be exposure issues especially related to the RT account, and also, (depending on the Province), Provincial tax account reporting.
The **RM0001 number is only relative to his import/export business, and does not affect his income tax.
He probably has an RT0001 account as well. The regular T2125 form is used for unincorporated businesses.
@joe.justjoe1 not everyone who completes tax returns is a professional accountant. This forum is here to offer assistance, not continual criticism and spouting of rules. Your posts are most often chastising, belittling and berating people who have come here looking for advice in an effort to learn and keep themselves out of hot water with the CRA.
You obviously have a deep understanding of the laws surrounding tax preparation. There are a number of us CPA’s here and we understand that you may be frustrated by the fact that some choose to take on tax preparation without the in depth education you have. That doesn’t give you the right to be rude to those who didn’t go the professional route.
Thank you for your personal criticism on the quality of my posts in general.
If you are suggesting that it is your opinion that the interests of the lay public are best served by unqualified persons passing themselves off to the unsuspecting public as being qualified experts, thereby misleading them, you are entitled to your opinion.
However, I would suggest that the Code of Ethics of the national and provincial bodies discourage that view.
Yes, I “sprout rules” - Tax work is all about “rules” - in fact specifically codified into “tax law”.
At the very least, such clients/public should be clearly informed at the start of such an engagement of the qualifications and experience (or lack thereof) by the person so hired, and the legal consequences of getting it wrong. Referral to someone else in any particular case may well be necessary.
In particular, tax work has substantially more legal consequences than assisting someone with their lego building project.
And please note, lest I be misunderstood, these are general comments in relation to your criticism of my posts, and are otherwise not related to this thread in any way.
Thank you for your concern.
Please feel free to post corrections to any of my posts that you may believe to be incorrect - you may well be able to phrase things better in such cases.
So these comments are also otherwise not related to the content of the thread. @dklassencga nowhere suggested that she recommends that people like myself take on tax work without the extent of education or knowledge of tax laws that you have.
The way you word your answers is usually irrelevant to the topic being discussed in the thread. Nowhere in this thread were lego building projects mentioned, before your irrelevant post.
Sprouting rules suggest actually growing them. @dklassencga only mentioned “spouting” rules, she didn’t accuse you of sprouting or growing or making them up.
" … mentioned “spouting” rules, she didn’t accuse you of sprouting or growing or making them up."
- Maybe I should move to Ottawa to take up the “sprouting”… 
“The way you word your answers is usually irrelevant to the topic being discussed in the thread. Nowhere in this thread were lego building projects mentioned, before your irrelevant post.”
.
Really?
Next time I post then, please correct me and explain carefully how exactly the Income Tax Act is NOT relevant to the TAX question being asked.
You are entitled to your opinion that the Income Tax Act (quoted above) is not relevant to the Tax issue.
The taxpayer so referenced however, does actually need to pay attention to the Income Tax Act, since Ignorantia juris non excusat.
Lego:
Perhaps it would be a good idea to read the lego manual before assisting someone with that…
Thankfully though, no one would get fined, penalized, prosecuted, or go to jail if the lego manual was not read or followed.
I agree with few other members that your post are chastising and belittling. And often attempts to scare readers.
Even professional accountants comes across new scenarios that they may want to discuss in this forum. We need to encourage them by giving guidance and demonstrate leadership attributes.
In your post, I am not sure why you are referring to section 230 of code of professional conduct which talks about showing professional incompetence. I think you may have misunderstood the question. The question was simply about process of submitting information to CRA. How is this related to showing professional incompetency. Are you saying that not knowing how to submit information to CRA falls under the scope of professional incompetency per section 230?
With your knowledge, we would expect nothing but solutions in your posts. Let me know if I missed solution in your post.
regards
I appreciate Joe’s input. He offers sound advice, often providing ITA references. Not sure which province you are in but a quick glance at the CPA Ontario code of ethics bring this up
Integrity and Due Care
Chartered Professional Accountants perform professional services with integrity and due care.
Members and firms are expected to be straightforward, honest and fair dealing in all professional relationships. They are also expected to act diligently and in accordance with applicable technical and professional standards when providing professional services. Diligence includes the responsibility to act, in respect of any professional service, carefully, thoroughly, and on a timely basis. Members are required to ensure that those performing professional services under their authority have adequate training and supervision.
Joe’s posts are always leading people to the CORRECT way to do something. Perhaps some people on here are not CPA’s and don’t need to follow this code of conduct, but that doesn’t take away from the fact that there is a right way to do things, and the ‘throw caution to the wind’ way.
Joe does bring a lot of very professional advice… And I prefer to think that just because we are not CPAs does not mean that we throw caution the wind.
My comment wasn’t meant to be taken as non CPA’s throw caution to the wind. I hope you didn’t take it that way. I only wanted to say that the acts that Joe refers to ITA, ETA etc are the correct rules to follow. You can file a return per rules, or not, but Joe always advises the correct way to do things. Some people don’t like that because it doesn’t get their client a refund, or reduces the refund, causes a balance to be owed.
There may be more threads where people have made a similar comment, but one comes to mind in which Joe advised to get legal advice and someone responded that some small business see that as a waste and many small businesses forego legal advice. I think Joe led the poster in the right path, others think he was talking down to them…
I never said Joe didn’t offer sound advice - I am simply pointing out that he tends to talk down to everyone here (CPA and non-CPA alike).
The whole point of the forums is to get advice when you’re unsure of something. He offers this in spades and I appreciate that.
Just use a bit of tact is all I’m asking for.
I think many of us after reading some posts have a reaction of
and possibly remain silent.
I think Joe tries to make people reflect on their career choices.
Yes, Arliss, a picture is worth a thousand words. But are you showing tact? 