[Fwd: Re: [Bcma-l] Audits]
bcma-l@museumsassn.bc.ca
bcma-l@museumsassn.bc.ca
Tue, 29 Jul 2008 15:13:25 -0800
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<div align="left"><font face="Arial"><span style="font-size:10pt">Larry;</span></font></div>
<div align="left"><font face="Arial"><span style="font-size:10pt">Whomever prepares your annual financial statements independently,</span></font></div>
<div align="left"><font face="Arial"><span style="font-size:10pt">and/or prepares your payroll need(s) to be involved in this process</span></font></div>
<div align="left"><font face="Arial"><span style="font-size:10pt">immediately to review the government assessment and to verify its</span></font></div>
<div align="left"><font face="Arial"><span style="font-size:10pt">accuracy.</span></font></div>
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<div align="left"><font face="Arial"><span style="font-size:10pt">As long as you are responsive and cooperative throughout the
process, (and it will become a process), you should find the urgency
(re: court action and seizure of assets, etc) diminished somewhat as a
solution or ruling is worked out. This may include proposing an agreed</span></font></div>
<div align="left"><font face="Arial"><span style="font-size:10pt">remittance schedule for the outstanding amount.</span></font></div>
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<div align="left"><font face="Arial"><span style="font-size:10pt">This sounds like alleged unremitted employee deductions, which are</span></font></div>
<div align="left"><font face="Arial"><span style="font-size:10pt">required for all employees, FT, PT or temporary, (including those</span></font></div>
<div align="left"><font face="Arial"><span style="font-size:10pt">summer students), who are clearly not contractors.</span></font></div>
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<div align="left"><font face="Arial"><span style="font-size:10pt">Small and even larger organizations can get confused as to what a</span></font></div>
<div align="left"><font face="Arial"><span style="font-size:10pt">contractor really is, and may think they can avoid remitting</span></font></div>
<div align="left"><font face="Arial"><span style="font-size:10pt">deductions by simply calling workers 'contractors', even though they</span></font></div>
<div align="left"><font face="Arial"><span style="font-size:10pt">actually work like employees, (ie. regular hours of work &</span></font></div>
<div align="left"><font face="Arial"><span style="font-size:10pt">employer-assigned tasks versus specific deliverables to deadline,</span></font></div>
<div align="left"><font face="Arial"><span style="font-size:10pt">etc).</span></font></div>
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<div align="left"><font face="Arial"><span style="font-size:10pt">Canada Revenue Agency (CRA) has a specific publication available</span></font></div>
<div align="left"><font face="Arial"><span style="font-size:10pt">online to help both employers and workers to determine their</span></font></div>
<div align="left"><font face="Arial"><span style="font-size:10pt">employment or contract status. A direct link to the pdf version is:</span></font></div>
<div align="left"><a href="http://www.cra-arc.gc.ca/E/pub/tg/rc4110/rc4110-06e.pdf"><font face="Arial"><span style="font-size:10pt"><u>http://www.cra-arc.gc.ca/E/pub/tg/rc4110/rc4110-06e.pdf</u></span></font></a></div>
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<div align="left"><font face="Arial"><span style="font-size:10pt">All institutions are well-advised to review their employment / contractor
relationships for compliance, as well as for how your contractors'
contracts are worded. CRA can also be approached, and advisedly
prior to a proposed contracted or employment term, to advise on which
status would apply.</span></font></div>
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<div align="left"><font face="Arial"><span style="font-size:10pt">Through annual filing of T4 Summaries by employers, and personal tax</span></font></div>
<div align="left"><font face="Arial"><span style="font-size:10pt">returns (with T4 slips), inevitably any outstanding remittances will</span></font></div>
<div align="left"><font face="Arial"><span style="font-size:10pt">show up through such audits. In terms of contractors, employers
should also ensure whether GST applies to your contractor's fees.</span></font></div>
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<div align="left"><font face="Arial"><span style="font-size:10pt">We are endeavouring to include a mini-workshop or specific
management and HR session this fall at Conference 2008.</span></font></div>
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<div align="left"><font face="Arial"><span style="font-size:10pt">Please keep the BCMA posted of developments and resolution, Larry.</span></font></div>
<div align="left"><font face="Arial"><span style="font-size:10pt">Best wishes, </span></font></div>
<div align="left"><font face="Arial"><span style="font-size:10pt">Jim</span></font></div>
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<div align="left"><font face="Arial" color="#7f0000"><span style="font-size:10pt">>  You probably  need a good accountant to go to bat for you and to</span></font></div>
<div align="left"><font face="Arial" color="#7f0000"><span style="font-size:10pt">>  perhaps launch an appeal. You never know- sometimes they are right,</span></font></div>
<div align="left"><font face="Arial" color="#7f0000"><span style="font-size:10pt">>  but sometimes even they can make mistakes! Having a full audit</span></font></div>
<div align="left"><font face="Arial" color="#7f0000"><span style="font-size:10pt">>  every few years is expensive, but might be a good idea if it can</span></font></div>
<div align="left"><font face="Arial" color="#7f0000"><span style="font-size:10pt">>  save you some grief in the long run. We had fully audited financial</span></font></div>
<div align="left"><font face="Arial" color="#7f0000"><span style="font-size:10pt">>  statements done this year.  It was a good exercise, and I am glad</span></font></div>
<div align="left"><font face="Arial" color="#7f0000"><span style="font-size:10pt">>  we did, even with our very small budget. Good Luck!  Gayle Cornish</span></font></div>
<div align="left"><font face="Arial" color="#7f0000"><span style="font-size:10pt">>  - Osoyoos Museum.</span></font></div>
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<div align="left"><font face="Arial" color="#7f0000"><span style="font-size:10pt">>  ----- Original Message -----</span></font></div>
<div align="left"><font face="Arial" color="#7f0000"><span style="font-size:10pt">>  From: <bcma-l-admin@museumsassn.bc.ca></span></font></div>
<div align="left"><font face="Arial" color="#7f0000"><span style="font-size:10pt">>  To: <bcma-l@museumsassn.bc.ca></span></font></div>
<div align="left"><font face="Arial" color="#7f0000"><span style="font-size:10pt">>  Sent: Thursday, July 24, 2008 8:46 AM</span></font></div>
<div align="left"><font face="Arial" color="#7f0000"><span style="font-size:10pt">>  Subject: [Bcma-l] Audits</span></font></div>
<div align="left"><font face="Arial" color="#7f0000"><span style="font-size:10pt">></span></font></div>
<div align="left"><font face="Arial" color="#7f0000"><span style="font-size:10pt">></span></font></div>
<div align="left"><font face="Arial" color="#7f0000"><span style="font-size:10pt">>  > Yesterday a government agent from Revenue Canada conducted an</span></font></div>
<div align="left"><font face="Arial" color="#7f0000"><span style="font-size:10pt">>  > audit of our books for the last two years. The result was a</span></font></div>
<div align="left"><font face="Arial" color="#7f0000"><span style="font-size:10pt">>  > penalty and assessment of several thousand dollars dealing with</span></font></div>
<div align="left"><font face="Arial" color="#7f0000"><span style="font-size:10pt">>  > EI and CPP deductions for various temporary employees [including</span></font></div>
<div align="left"><font face="Arial" color="#7f0000"><span style="font-size:10pt">>  > free lance contract workers] over the past two years. The</span></font></div>
<div align="left"><font face="Arial" color="#7f0000"><span style="font-size:10pt">>  > assessment is payable immediately and Federal court action and</span></font></div>
<div align="left"><font face="Arial" color="#7f0000"><span style="font-size:10pt">>  > seizure of assets are threatened. When I asked him why the</span></font></div>
<div align="left"><font face="Arial" color="#7f0000"><span style="font-size:10pt">>  > department was bothering with small non profits such as us, he</span></font></div>
<div align="left"><font face="Arial" color="#7f0000"><span style="font-size:10pt">>  > said this will be extended to all small museums and galleries. We</span></font></div>
<div align="left"><font face="Arial" color="#7f0000"><span style="font-size:10pt">>  > are not sure how to deal with this as we do not have the money to</span></font></div>
<div align="left"><font face="Arial" color="#7f0000"><span style="font-size:10pt">>  > pay this assessment. I am also wondering if any other museum or</span></font></div>
<div align="left"><font face="Arial" color="#7f0000"><span style="font-size:10pt">>  > gallery has endured such unwarranted harassment and scrutiny?</span></font></div>
<div align="left"><font face="Arial" color="#7f0000"><span style="font-size:10pt">>  ></span></font></div>
<div align="left"><font face="Arial" color="#7f0000"><span style="font-size:10pt">>  > --</span></font></div>
<div align="left"><font face="Arial" color="#7f0000"><span style="font-size:10pt">>  > Larry A. Ewashen</span></font></div>
<div align="left"><font face="Arial" color="#7f0000"><span style="font-size:10pt">>  > Doukhobor Discovery Centre</span></font></div>
<div align="left"><font face="Arial" color="#7f0000"><span style="font-size:10pt">>  > 112 Heritage Way</span></font></div>
<div align="left"><font face="Arial" color="#7f0000"><span style="font-size:10pt">>  > Castlegar BC V1N 4M5</span></font></div>
<div align="left"><font face="Arial" color="#7f0000"><span style="font-size:10pt">>  > www.Doukhobor-Museum.org</span></font></div>
<div align="left"><font face="Arial" color="#7f0000"><span style="font-size:10pt">>  > 250-365-5327</span></font></div>
<div align="left"><font face="Arial" color="#7f0000"><span style="font-size:10pt">>  > _______________________________________________</span></font></div>
<div align="left"><font face="Arial" color="#7f0000"><span style="font-size:10pt">>  > Bcma-l mailing list</span></font></div>
<div align="left"><font face="Arial" color="#7f0000"><span style="font-size:10pt">>  > Bcma-l@museumsassn.bc.ca</span></font></div>
<div align="left"><font face="Arial" color="#7f0000"><span style="font-size:10pt">>  > http://hp.bccna.bc.ca/mailman/listinfo/bcma-l</span></font></div>
<div align="left"><font face="Arial" color="#7f0000"><span style="font-size:10pt">>  ></span></font></div>
<div align="left"><font face="Arial" color="#7f0000"><span style="font-size:10pt">>  ></span></font></div>
<div align="left"><font face="Arial" color="#7f0000"><span style="font-size:10pt">></span></font></div>
<div align="left"><font face="Arial" color="#7f0000"><span style="font-size:10pt">>  _______________________________________________</span></font></div>
<div align="left"><font face="Arial" color="#7f0000"><span style="font-size:10pt">>  Bcma-l mailing list</span></font></div>
<div align="left"><font face="Arial" color="#7f0000"><span style="font-size:10pt">>  Bcma-l@museumsassn.bc.ca</span></font></div>
<div align="left"><font face="Arial" color="#7f0000"><span style="font-size:10pt">>  http://hp.bccna.bc.ca/mailman/listinfo/bcma-l</span></font></div>
<div align="left"><font face="Arial" color="#7f0000"><span style="font-size:10pt">></span></font></div>
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<div align="left"><font face="Arial"><span style="font-size:10pt">_______________________________</span></font></div>
<div align="left"><font face="Arial"><span style="font-size:10pt">Jim Harding, ED</span></font></div>
<div align="left"><font face="Arial"><span style="font-size:10pt">BC Museums Association</span></font></div>
<div align="left"><font face="Arial"><span style="font-size:10pt">(250) 356-5694</span></font></div>
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<div align="left"><font face="Arial"><span style="font-size:10pt">------- End of forwarded message -------
_______________________________</span></font></div>
<div align="left"><font face="Arial"><span style="font-size:10pt">Jim Harding, ED</span></font></div>
<div align="left"><font face="Arial"><span style="font-size:10pt">BC Museums Association</span></font></div>
<div align="left"><font face="Arial"><span style="font-size:10pt">(250) 356-5694</span></font></div>
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