Further to my last blog, I am now in Abidjan, Ivory Coast, West Africa. Once again, I am here for the past 5 days for meetings with the Canadian embassy and with clients and prospective clients. First of all, the first thing that you notice when you get you from the plane is how people are - I mean, local, Ivorian people. They are actually extremely nice and helpful ... the first impression was great - as I blog before, I am a firm believer in building relationship and taking the time to have a genuine conversation. Throughout my stay here, I had the chance to meet several people. I had several meetings with the Canadien embassy here in Abidjan. These guys are doing a FANTASTIC job - they are offering incredible services for canadian businessmen. Further they are responsible for 8 countries on thebusiness development side and are responsible for 14 countries on the visas office. They are the liaison for most countries in West Africa. Once again, I would like to stress how these people are helpful on the ground - please do not hesitate to contact them if you need help in west Africa - you can reach them here .
As mentionned before, the Ivorian are extremely nice and are always willing to help. Obviously, doing business here is qutie different than back home. First of all, beeing patient is a verty that is absolutely required here. Indeed, its really similar than Latin America, (see here my blog on that topic) First of all you need to establish true relationship - discuss real things: (i.e. family, wife, soccer etc. etc.) at least for the first 15-20 minutes. I had several conversations with them on that topic and the told that trey truly believe in living the moment. Further, I can tell you that the opportunities for businesspeople are enormous here ... its incredible - For instance, the private sector are madly looking for providers of intranet and internet. I give you a practical experience, I just paid more than $CDN 8 for only 2 hours of internet... Since I arrived here, I probably paid more than $250 on internet ticket - I've asked several times for a price for the week - however it is impossible, I've been told that the maximum was 2 hours... quite frustrating and expensive at the same time... For the majority of people, Africa is quite scary, however, I can tell you that if you are genuine and that you intend to do business here - I suggest that you fly here and meet face to face - if they feel that you are genuine and truly invest and do business in their country- you will be successful !!!!
I now have to go because I am at the airport here in Abidjan and I am flying in less than 30 min. to Ougadagou, Burkina Faso. I will resume my trip next Monday by flying back to Dubai and after flying back to Ottawa.
Wednesday, April 23, 2008
Monday, April 14, 2008
The magic of DUBAI!!!
As you might know, I am currently in Dubai - visiting new and prospective clients. I can tell you one thing - thie city is BOOMING and GROWING.... as my friend Adrian Salamunovich, co-founder of DNA11 would say: "the vast majority of entrepreneurs in Ottawa think small, they forgot the importance of thinking BIG!!!". Well, I can tell you that Adrian would be satisfy and happy here in Dubai. Upon my return to my hotel earlier today, I was asking myself what is so magic in Dubai? Obviously, I visited the main commercial attractions of Dubai: 7 stars hotel Burj al Arab , Mall of the Emirates (containing Ski Dubai - I really enjoyed skiing when its like 35' C. outside). You can also envision probably 50-60 new buildings in construction. What is really striking me is the rapidity of how the business is done in Dubai. Dubai is THE financial hub of the Middle East. Therefore, people fly from all over the world to have a piece of the pie. I have met this british who flew here 6 years ago and now runs 6 condo-hotel projects. (e.i. $250 millions worth of investment) - however by Dubai standard, this amount is so small and often qualify as peanut....therefore I am sure that you can imagine the rest...
The population of Dubai only is 1,4 million - 80% of people are expats. Can you imagine 80% !!! As someone told me today, the british are the one who conceive and fund it and the indians are the one building it... For instance in my hotel, more than 90% are the staff are either chinese or indian. Moreover, because of the venue of so many expats (more than 70 nationalities) it's extremely diffficult to realize that you are in the Middle East.
Wednesday, April 9, 2008
Children's Fitness Tax Credit *
Starting with the 2007 tax year, the Government of Canada allows a non-refundable tax credit based on eligible fitness expenses paid by parents to register a child in a prescribed program of physical activity. The following information is for parents of children who are, at the beginning of the year in which an eligible fitness expense is paid, under the age of 16 or, if eligible for the disability tax credit, under the age of 18.
Information for parents
Amount of the tax credit
The children's fitness tax credit lets parents claim up to $500 per year for eligible fitness expenses paid for each child who is under 16 years of age at the beginning of the year in which the expenses are paid.
If a child qualifies for the disability tax credit, parents can claim up to $500 per year in eligible fitness expenses paid for the child who is under 18 years of age at the beginning of the year. Also, if at least $100 in eligible fitness expenses has been paid for the child, an additional amount of $500 can be added to the eligible fitness expenses actually incurred.
As with most other non-refundable tax credits, the children’s fitness tax credit is calculated by multiplying the total expense by the lowest marginal tax rate (the rate for 2007 is 15%).
Prescribed programs of physical activity
An eligible fitness expense must be for the cost of registration or membership of an eligible child in a prescribed program of physical activity. Generally, such a program must:
be ongoing (either a minimum of eight consecutive weeks long or, for children's camps, five consecutive days long);
be supervised;
be suitable for children; and
include a significant amount of physical activity that contributes to cardio-respiratory endurance, plus one or more of: muscular strength, muscular endurance, flexibility, or balance.
Under the Income Tax Regulations, the definition of physical activity includes:
horseback riding; and
if the child is eligible for the disability tax credit, activities that result in movement and in an observable use of energy in a recreational context.
An activity for which a child rides on, or in, a motorized vehicle as an essential part of the activity does not qualify for the children’s fitness tax credit.
Since certain expenses paid by parents for the registration or the membership of a child in a prescribed program of physical activity are not eligible for the children’s fitness tax credit, organizations offering such prescribed programs should determine the part of the registration or membership fee that is eligible for the credit. For more detailed information about the criteria for prescribed programs of physical activity and the fees that qualify for the credit, see the regulations.
Claiming the tax credit on your 2007 income tax return
You can claim the children’s fitness tax credit for each child who was, at the beginning of the year in which the registration or membership fee was paid, under 16 years of age or under 18 years of age and eligible for the disability tax credit (as long as another person has not already claimed the same eligible fitness expenses and that the total amount claimed is not more than the maximum that would be allowed if only one of you were claiming the credit). Eligible fitness expenses include amounts paid by you or your spouse or common-law partner in the year, regardless of when the activity takes place. Amounts paid before 2007 do not qualify for the credit.
Example Mary registered:
her daughter Julie in a prescribed program of physical activity and paid fees of $750 on August 30, 2006. The program started on September 15, 2006, and ended on April 21, 2007.
Mary’s husband registered:
their son Eric in a prescribed program of physical activity and paid fees of $750 on December 20, 2006. The program started on January 6, 2007, and ended on April 28, 2007;
and
their daughter Samantha in a prescribed program of physical activity and paid fees of $750 on January 2, 2007. The program started on January 6 and ended on April 28, 2007.
On her 2007 income tax return, Mary can only claim the maximum amount of $500 for Samantha's program (if her husband is not claiming this amount) because the fees for the other two children were paid in 2006.
If you or your spouse or common-law partner paid amounts that could be claimed on an income tax return as either child care expenses (line 214) or the children’s fitness amount (line 365), the amounts must first be claimed as child care expenses. Any unused part can be claimed for the children’s fitness tax credit, as long as the requirements are met.
You or your spouse or common-law partner may be entitled to a reimbursement, allowance, or other form of assistance for all or part of the eligible fitness expenses. If so, you can only claim the amount equal to the difference between the amount paid and the amount of assistance received. However, the full amount of the eligible fitness expense can still be claimed if the reimbursement, allowance, or other form of assistance has been included in income and not deducted elsewhere on the income tax return.
You can get information about how to claim the tax credit in the General Income Tax and Benefit Guide for 2007 (see the instructions for line 365, Children’s fitness amount).
Don't forget to ask for a receipt
You should receive, or ask for, a receipt from organizations that provide prescribed programs of physical activity for which you paid to have your child enrolled. The organizations will determine the part of the fee that qualifies for the children’s fitness tax credit.
Note It is not an organization’s responsibility to determine whether or not a child is eligible for the disability tax credit. If a parent tells an organization that a child is eligible for the disability tax credit, the organization should issue a receipt accordingly.
Keep the receipts issued by the organizations that deliver the programs. Do not include the receipts when you file your income tax return. However, keep the receipts in case we ask for them to verify your claim. Keep receipts for six years.
* From CRA's Website, Click HERE for more information and for the interpration bulletin of CRA
Information for parents
Amount of the tax credit
The children's fitness tax credit lets parents claim up to $500 per year for eligible fitness expenses paid for each child who is under 16 years of age at the beginning of the year in which the expenses are paid.
If a child qualifies for the disability tax credit, parents can claim up to $500 per year in eligible fitness expenses paid for the child who is under 18 years of age at the beginning of the year. Also, if at least $100 in eligible fitness expenses has been paid for the child, an additional amount of $500 can be added to the eligible fitness expenses actually incurred.
As with most other non-refundable tax credits, the children’s fitness tax credit is calculated by multiplying the total expense by the lowest marginal tax rate (the rate for 2007 is 15%).
Prescribed programs of physical activity
An eligible fitness expense must be for the cost of registration or membership of an eligible child in a prescribed program of physical activity. Generally, such a program must:
be ongoing (either a minimum of eight consecutive weeks long or, for children's camps, five consecutive days long);
be supervised;
be suitable for children; and
include a significant amount of physical activity that contributes to cardio-respiratory endurance, plus one or more of: muscular strength, muscular endurance, flexibility, or balance.
Under the Income Tax Regulations, the definition of physical activity includes:
horseback riding; and
if the child is eligible for the disability tax credit, activities that result in movement and in an observable use of energy in a recreational context.
An activity for which a child rides on, or in, a motorized vehicle as an essential part of the activity does not qualify for the children’s fitness tax credit.
Since certain expenses paid by parents for the registration or the membership of a child in a prescribed program of physical activity are not eligible for the children’s fitness tax credit, organizations offering such prescribed programs should determine the part of the registration or membership fee that is eligible for the credit. For more detailed information about the criteria for prescribed programs of physical activity and the fees that qualify for the credit, see the regulations.
Claiming the tax credit on your 2007 income tax return
You can claim the children’s fitness tax credit for each child who was, at the beginning of the year in which the registration or membership fee was paid, under 16 years of age or under 18 years of age and eligible for the disability tax credit (as long as another person has not already claimed the same eligible fitness expenses and that the total amount claimed is not more than the maximum that would be allowed if only one of you were claiming the credit). Eligible fitness expenses include amounts paid by you or your spouse or common-law partner in the year, regardless of when the activity takes place. Amounts paid before 2007 do not qualify for the credit.
Example Mary registered:
her daughter Julie in a prescribed program of physical activity and paid fees of $750 on August 30, 2006. The program started on September 15, 2006, and ended on April 21, 2007.
Mary’s husband registered:
their son Eric in a prescribed program of physical activity and paid fees of $750 on December 20, 2006. The program started on January 6, 2007, and ended on April 28, 2007;
and
their daughter Samantha in a prescribed program of physical activity and paid fees of $750 on January 2, 2007. The program started on January 6 and ended on April 28, 2007.
On her 2007 income tax return, Mary can only claim the maximum amount of $500 for Samantha's program (if her husband is not claiming this amount) because the fees for the other two children were paid in 2006.
If you or your spouse or common-law partner paid amounts that could be claimed on an income tax return as either child care expenses (line 214) or the children’s fitness amount (line 365), the amounts must first be claimed as child care expenses. Any unused part can be claimed for the children’s fitness tax credit, as long as the requirements are met.
You or your spouse or common-law partner may be entitled to a reimbursement, allowance, or other form of assistance for all or part of the eligible fitness expenses. If so, you can only claim the amount equal to the difference between the amount paid and the amount of assistance received. However, the full amount of the eligible fitness expense can still be claimed if the reimbursement, allowance, or other form of assistance has been included in income and not deducted elsewhere on the income tax return.
You can get information about how to claim the tax credit in the General Income Tax and Benefit Guide for 2007 (see the instructions for line 365, Children’s fitness amount).
Don't forget to ask for a receipt
You should receive, or ask for, a receipt from organizations that provide prescribed programs of physical activity for which you paid to have your child enrolled. The organizations will determine the part of the fee that qualifies for the children’s fitness tax credit.
Note It is not an organization’s responsibility to determine whether or not a child is eligible for the disability tax credit. If a parent tells an organization that a child is eligible for the disability tax credit, the organization should issue a receipt accordingly.
Keep the receipts issued by the organizations that deliver the programs. Do not include the receipts when you file your income tax return. However, keep the receipts in case we ask for them to verify your claim. Keep receipts for six years.
* From CRA's Website, Click HERE for more information and for the interpration bulletin of CRA
Sunday, April 6, 2008
Required Clearance Certificate and Section 6 Retail Sales Tax
Persons who sell their business or business assets (known as an Asset Purchase Agreement), in whole or in part, through a sale in bulk to which the Bulk Sales Act applies, are required to obtain a Clearance Certificate from the Ministry of Revenue. A Clearance Certificate certifies that all Retail Sales Tax (RST) collectable or payable by the seller has been paid or secured. It also protects the purchaser from the responsibility for the outstanding RST liabilities of the seller. Where the Bulk Sales Act applies to a sale in bulk, the purchaser is required to obtain from the seller a copy of the Clearance Certificate obtained by the seller (As purchaser, I highly recommend that you receive such certificate PRIOR to closing). If the purchaser fails to obtain a Clearance Certificate from the seller, the purchaser may be held liable for any RST owing by the seller at the time of the sale.The Bulk Sales Act may apply where there is a sale of stock (i.e., fixtures, goods, chattels) in bulk out of the usual course of business or trade of the seller. To determine whether the Bulk Sales Act applies to a particular situation, sellers and purchasers should consult their respective legal advisor or contacting me should they have any questions.
In certain circumstances, such as where RST is owed by the seller or where an audit has been scheduled but not completed prior to the closing date of the sale, the Ministry of Revenue may require funds to be held back from the proceeds of the sale prior to issuing the Clearance Certificate or the seller may be asked to agree in writing to a condition being placed on the certificate.
All requests for Clearance Certificates must be made in writing, at least two weeks before the sale takes place, and signed by the seller or the seller's authorized representative. The request should be sent by mail or fax to their nearest Ontario Ministry of Revenue Tax Office.
Our local office:
Ottawa Tax Office
Ontario Ministry of Revenue - MOR
1400 Blair Place, Suite 300Gloucester, Ontario
K1J 9B8
Telephone: 613-746-9200
Fax: 613-842-3593
Toll-free (information):1-800-461-4909
In certain circumstances, such as where RST is owed by the seller or where an audit has been scheduled but not completed prior to the closing date of the sale, the Ministry of Revenue may require funds to be held back from the proceeds of the sale prior to issuing the Clearance Certificate or the seller may be asked to agree in writing to a condition being placed on the certificate.
All requests for Clearance Certificates must be made in writing, at least two weeks before the sale takes place, and signed by the seller or the seller's authorized representative. The request should be sent by mail or fax to their nearest Ontario Ministry of Revenue Tax Office.
Our local office:
Ottawa Tax Office
Ontario Ministry of Revenue - MOR
1400 Blair Place, Suite 300Gloucester, Ontario
K1J 9B8
Telephone: 613-746-9200
Fax: 613-842-3593
Toll-free (information):1-800-461-4909
Friday, April 4, 2008
13th annual OCRI Awards
OCRI, Ottawa's economic development agency honoured Ottawa's best and brightest companies, executives and students for their innovative work and contributions to the city's knowledge-based sector at the 13th annual OCRI Awards gala and dinner. The awards celebrate excellence in the areas of research, technology, entrepreneurship, leadership, partnership development and student accomplishments. Nominations for the nine categories were solicited from Ottawa's business and education community last December. These companies are the future ... you should keep an eye on them. Congrats to the winners!!!
The following awards were presented:
Technology Company of the Year:
Awarded to Bridgewater Systems in recognition of the company's ongoing commitment to be the top provider of subscriber-centric service control solutions to a growing number of partners world-wide as well as their successful initial public offering and Toronto Stock Exchange listing which contributed to their status as an industry leader.
Next Generation Executive of the Year:
Awarded to John Roese, Chief Technology Officer, Nortel Networks, for the role he has played in the major transformation of the company's global R&D engine that ensures the company is well positioned to take advantage of opportunities in the rapidly changing (and converging) worlds of telecom and IT.
Most Promising Start-Up of the Year:
Awarded to Menova Energy Inc. for the work they have done to change the economics of solar energy with their entirely scalable, flexible deployment of a unique solar concentrating system.
Financial Deal of the Year:
Awarded to Mitel in recognition of their successful bid and acquisition of U.S. based Inter-Tel. The $729 million acquisition represents one of Ottawa's biggest financing deals in over 10 years and has created a company well on its way to achieving an international market leadership position.
Technology Partnership Commercialization:
Awarded to Communications Research Centre Canada (CRC) in recognition of their significant contribution to Canada's communications sector and their ongoing commitment to innovation and research over the past 50 years which includes spinning out more than 50 Ottawa based start-ups.
Service of the Year:
Awarded to bitHeads Inc. in acknowledgment of the considerable success achieved by the HeadGames division and the company's innovative service offering that helps clients get award-winning software and games to market faster.
Product of the Year:
Awarded to Ross Video Limited for their state-of-the-art, continually evolving product line which is used in broadcast, live event and production applications in over 100 countries, 24 hours a day, 365 days a year.
Student Researcher of the Year:
Two awards were presented in this category. The first award was presented to Atif Shamim and Muhammad Arsalan of Carleton University for their research work in the field of wireless
The second award recipient is David Nadeau from the University of Ottawa for inspired research resulting in a more intelligent on-line search engine and his commercialization efforts which launched yooname.com last November and immediately led to a contract with a Montreal start-up.
High School Technology Innovator of the Year:
Awarded to Daniel André Vienneau from École secondaire catholique Garneau, Conseil des écoles catholiques de langue française du Centre-Est for his creation of 'Fotek' a very successful, non-profit, computer repair enterprise. Fotek's services are available to Garneau teaching staff, students and their families as well as residents of the Orléans area. Students who work for Fotek earn valuable community service hours which are applicable toward their high school diploma.
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