BurnabyNOW WEDNESDAY March 18, 2015 11
BURNABY
BUSINESS NEWS
BBOT says ‘Yes’ but with concerns
By Michael Keller michael@bbot.ca The Burnaby Board of Trade (BBOT) has come out in support of a cautious “Yes” vote, despite concerns, on Metro Vancouver’s
MARCH 2015
BURNABY BOARD OF TRADE
Events BUSINESS RECEPTION with Finance Minister Mike de Jong
upcoming transit plebiscite for a 0.5% Metro Vancouver Congestion Improvement Tax to help fund transportation expansion across the region. In a recently released policy bulletin, the BBOT cites reservations about the proposed
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accomplish meaningful improvements to regional transportation. “With over 2.3 million people, and accounting for nearly 60% of all jobs in BC, Metro Vancouver is a major economic driver for the provincial economy,” said Con’t on p.3
Apr 16 @ BBOT Offices
C P A H PRESENTS and A
funding model and concerns about its impact on business, the accountability for the new revenue, and the precedent the new tax may set. Ultimately, though, it concludes that the vote likely represents the best chance to achieve sustainable, long-term funding and
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Transit con’t from cover BBOT President and CEO Paul Holden. “We have seen recent studies that suggest traffic congestion in the region is costing the economy around $1 billion every year, and that could increase to $2 billion annually if there is no further investment in our transit infrastructure.” By funding the transit plan proposed by the Mayors’ Council, the bulletin notes that congestion could be reduced by 10%, saving up to 30 minutes in commuting time on some routes, and at the end of the plan, 70% of the region’s residents would be within walking distance of regular, reliable transit service.
In Burnaby specifically, some highlights of the plan include improved SkyTrain service (doubled Expo Line capacity by 2041), increased bus service including more B-Lines, and a new four-lane, tolled Pattullo Bridge into neighbouring New Westminster. The Board of Trade does however point out that the plan is not without concerns. In particular, the Board is concerned with the impact of the proposed tax increase on business, the auditing and accounting procedures put in place to oversee the new revenue, and the potential for future regional tax increases to fund other government
spending priorities. “As Burnaby’s economic development agency, we’re concerned that even a relatively minor increase such as this has the potential to negatively influence consumer spending behavior,” remarked Holden. “We don’t want to see people spending disproportionately less at local businesses, or taking their dollars to other jurisdictions such as Washington State or Mission and Abbotsford.” In addition, the bulletin points out that the Board considers the regional tax model as an exceptional case, and would be skeptical of any plan to copy the model to fund future
public projects, whether for infrastructure or other spending initiatives. The BBOT also seeks a commitment from government that the proposed regional tax undergo regular, mandatory reviews and that the tax rate of 0.5% not be subject to future increases. “The BBOT feels strongly that there should be significant public oversight of the revenue raised from this new tax. When implementing this new tax, if approved by voters, we urge government to ensure it is done in the least disruptive manner possible,” said Holden. Find the full policy bulletin at bbot.ca/ advocacy. ¾
For HollyNorth, sustainability is not an act program to help collect that recycling that HollyNorth Production Supplies President otherwise becomes landfill – cardboard, and General Manager Mike Kaerne has been in the movie and television production supply paint, plastics, Styrofoam, paper, light bulbs, sometimes wood or metal. business for over 17 years. Coming from the auto parts recycling business where recycling What do you hope to achieve by making was the DNA of the business model, it came your business more sustainable? naturally to him to apply the same principles There are many things we wish to achieve of reduce, reuse, recycle to HollyNorth. – be friendlier to our planet, be more Recently the BBOT had the opportunity responsible in our purchasing decisions, to talk to Mike about his commitment to reduce our waste footprint, be a good sustainability both in his business as well as community example, just to name a few. the community. What got you started thinking about sustainability? I have been interested and involved in recycling for many years – I worked in and later owned an auto parts recycling yard (auto wreckers). When I got into the film industry it just continued. The film industry is very concerned with sustainability, recycling, and ecological practices. How did you decide what was most important to tackle first? I started with cardboard - we receive most of our products in cardboard boxes that we wanted to dispose of properly. As the possibility of recycling more of our ‘waste’ became apparent, we added those to our recycling program. We now collect and recycle batteries, plastics, newspaper and office paper, CFL’s and fluorescent tubes, unused paints, Styrofoam, propane canisters and other items. Do you feel this has any impact on how you do business? It does impact such considerations as how a product is packaged, how we deal with that packaging, what effort or arrangements we must do to deal with it…so those are things we take into consideration when making a purchasing decision, we try to buy local as much as feasible. It also has a financial impact because we assist our clients to recycle, so it does cost us a little bit. The TV commercial industry are very temporary and transient productions, so they don’t always have time to dispose of their waste properly so it needs to be very easy for them to do. We offer our in-house
What are your next steps and goals? Find ways to reduce our use of heating (natural gas) and electricity. We have installed timer light switches in some areas and are going to install programmable thermostats next. You have been a member of the Pledge for a Sustainable Community since its launch 2 years ago. What was your motivation for joining and what have been its benefits? Yes, HollyNorth Production Supplies has been a proud member of the Pledge for a Sustainable Community for 2 years now. (bbotpledge.ca) The Pledge is an initiative of the Burnaby Board of Trade and provides tools, resources, workshops and opportunities to help make Burnaby a greener, more sustainable community. Those resources help educate our staff (and our customers) in order to improve and increase our green initiatives. We think the Pledge is a tremendous asset for the community and businesses alike. Find resources to become more sustainable and promote your green initiatives today. BBOTPLEDGE.CA ¾
ARE YOU A SUSTAINABLE BUSINESS? Nominate yourself for a City of Burnaby Environmental Award! Deadline: April 13th visit burnaby.ca
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BBOT Supports Balanced Budget By Cory Redekop cory@bbot.ca
Burnaby Board of Trade President & CEO Paul Holden was in Victoria for the release of the new provincial budget and attended the budget speech by Finance Minister Mike de Jong in person at the Legislative Assembly. The BBOT is generally supportive of this ‘stay the course’ budget and is especially pleased to see the province announce another balanced budget with a strong surplus. The 2015 budget contained a projected surplus of $879 million for the end of fiscal year 2014/15 and a surplus of $284 million forecast for the coming fiscal year of 2015/16. As a result, British Columbia will likely be the only province to post a budget surplus this year. Minister de Jong also announced forecasts for surpluses for the next two fiscal years of $376 million in 2016/17 and $399 million in 2017/18. The BBOT believes that a balanced provincial budget serves to As part of its review of the provincial budget, illustrate the strength of the BC economy and the BBOT sought analysis and comments helps set the province apart as an attractive from the business and academic communities place to do business when compared to other to share with its members: jurisdictions. The budget also included important Helmut Pastrick, Chief Economist, Central 1 supports for the digital media and film & Credit Union: television industries, among others, which “Budget 2015 contained no major surprises and are two of Burnaby’s key business sectors. was a continuation of the government’s policy The BBOT has advocated in the past for stance. The fiscal plan confirms that B.C. additional supports for these industries, public finances are in good shape with the and was therefore pleased to see the province anticipated to run surpluses through government announce an expansion of the 2017/18. Debt-to-GDP ratios are projected to decline and will remain amongst the lowest Digital Animation or Visual Effects Tax Credit in the country. Most of the public debt is as well as announce an extension to 2018 of to finance past and future capital spending the Interactive Digital Media Tax Credit. The
Tax tips for your unincorporated business By Glenn Plunkett The Accounting Store If you operate a business that is not incorporated, one of the first questions is “Are you self-employed or an employee?” Canada Revenue Agency publication RC 4110 can help you make the correct determination. Once you have determined that you are self-employed let’s look at how you can minimize your costs at tax time. Avoiding late filing penalties seems very obvious but entrepreneurs sometimes get caught up running the business and forget how costly these penalties are. They also bring your business to the attention of the Canada Revenue Agency which can result in reviews
BBOT understands the importance of both the digital media and film & television sectors as cornerstones of our creative economy and will continue to advocate on their behalf. The budget contained some announcements relevant to social and environmental concerns, including the exemption of child support payments from income assistance calculations, the roll-out of the BC Early Childhood Tax Benefit, and the new Water Sustainability Act. As a triplebottom-line organization, the BBOT will task its Social Development Committee and Environmental Sustainability Committee to review the budget’s social and environmental proposals and continue to guide BBOT advocacy in these areas. Other highlights of the budget’s fiscal plan include $2.1 billion in infrastructure spending for post-secondary education, skills and trades training, $2.9 billion in transportation investments (including the Evergreen SkyTrain Line from Burnaby to Coquitlam), $2 million in additional funding for the Buy Local program, which helps farmers and food processors promote their B.C. products, an extension to the BC Training Tax Credit and an increase to the Small Business Venture Capital Tax Credit.
and audits that may lead to more issues! Getting your documents organized will minimize the cost of tax preparation and ensure that you pay the least amount of tax. Contact your tax preparer or accountant and ask how they prefer to have the documents organized then take the time to get organized. Make sure you keep every eligible receipt and document any expenses incurred that do not generate a receipt (i.e. parking meters). I also recommend that you scan all documents and save a copy. Using separate
bank and credit card accounts makes this process easier. Here are a few of the areas that can raise RED flags at tax time: 1. Home office expenses: If you’re selfemployed, home office expenses must relate to a workspace that is either your principal place of business or used exclusively for the purpose of earning income for the business. Verify the rules that apply and claim the maximum allowable expenses. If you can’t claim them in the current tax year you can carry them forward to subsequent years. 2. Salaries paid to a family member: Salaries are tax deductible to your business as long as the wages are reasonable in relation to the services they have provided. Generally salaries are considered reasonable if they’re representative of an amount that would be paid to an employee to do the same job. 3. Auto expenses: Using you’re personally owned automobile for business can generate significant tax deductible expenses but does require detailed record keeping. The rules governing automobile deductions and limitations are complex and cannot be covered in detail here. Seek professional advice to ensure these expenses are being claimed correctly.
on infrastructure for health, education, transportation, and utilities purposes. Budget 2015 projects average annual revenue growth of 2.1 per cent and expense growth of 2.3 per cent through 2017/18. The budget surplus is projected at $284 million in 2015/16, down from $879 million in 2014/15, rising to $399 million in 2017/18. The projections are after the forecast allowance and contingencies amounting to $750 million in 2017/18. An additional buffer comes from conservative economic assumptions on overall B.C. growth, the exchange rate, interest rates, commodity prices, and housing activity. There is a high probability that the economy will outperform budget assumptions leading to higher revenue and budget surpluses than projected. Provincial government spending will not be a significant driver of economic growth over the next three years under this budget plan. However, should the economy outperform budget assumptions, it will allow the government more room to nudge up future spending.” Andrey Pavlov, Professor of Finance, Beedie School of Business, Simon Fraser University: “This balanced budget is good for all of us. I am pleasantly surprised that the government kept its promise to roll back the highest marginal tax rate to 2013 levels. While the actual tax implications are small, this sends a highly positive signal that our government is consistent and reliable. I am concerned about the increase in the overall debt. Our infrastructure is clearly in desperate need of investments, but these investments should come from the private sector to the extent possible and be supported by future user fees. The fact that debt-to-GDP is falling is a redeeming factor, although this would be of little help if GDP growth forecasts turn out to be too optimistic.” ¾
4. Meals and entertainment expenses: In the majority of cases these expenses are only 50% deductible. This includes gift certificates and the rules apply to all businesses. It also applies to the GST portion of the expenses, only 50% can be claimed as an input tax credit. To get the most out of tax planning it must be done early in the fiscal year. The first step in the process is to determine the best business structure for you and your business. Should you incorporate or not? What are the advantages of incorporation? If you decide to incorporate most businesses assets can be transferred into the corporation on a tax deferred basis. There are specific rules that apply and definite procedures that must be followed. Seek professional advice before making the decision to incorporate. At this time of year it is important to remember that tax preparation is reporting historical facts and there is very little you can do to save on last year’s tax bill. If you want to take advantage of all the opportunities available to save on your tax bill you should work with your tax advisor to develop a tax plan before the year-end for your business. theaccountingstore.ca ¾
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Member Benefit – Grand and Toy As a member of the Burnaby Board of Trade you have access to exclusive benefits and services designed to help you save money and do business better. We are now pleased to announce that through the Alba Group and the purchasing power of the Canadian Chamber of Commerce, we have partnered with Grand and Toy to be able to provide specialized preferred pricing to all qualified members of the Board of Trade. Ordering is made easy - online, e-mail and phone plus FREE next-
business-day delivery is available in all major cities on orders of $50 or more. Online user profiles created for each member with access to your price list, order tracking and history, product sourcing, and weekly promotions make it easier for you to do business. To find out more about our other benefits and services programs such as BIV free subscription with membership, Chamber of Commerce Group Insurance Plan, Esso and Petro Canada Gas Savings and many more visit bbot.ca.
Your Dependable Source For All The Office Products And Solutions You Need With Grand & Toy, you have more choices and deeper savings. With our simple-to-use website and enhanced shopping experience, Grand & Toy makes your workplace a little less complicated and a lot more productive.
BBOT Membership Info Lunch & Learn FIND OUT WHY OVER 1,100 BUSINESSES, ENTREPRENEURS AND ORGANIZATIONS HAVE DECIDED THE JOIN THE BURNABY BOARD OF TRADE!
Advantages of Grand & Toy Partnership: • Through the Alba Group and the purchasing power of the Canadian Chamber of Commerce, we are able to provide specialized preferred pricing to all qualified members of the Board of Trade. • Multiple methods of ordering: online, e-mail and phone • FREE next-business-day delivery available in all major cities on orders of $50 or more • Online user profile created for each member with access to your price list, order tracking and history, product sourcing and weekly promotions
Award-Winning Customer Service Support:
Dedicated Business Development Manager:
Mon-Fri 7:00 a.m. – 4:30 p.m. PST • Order placing • Product sourcing • Tracking and returns • Stamps and catalogue requests
Dean Yano 1.604.360.1257 DeanYano@grandandtoy.com
1.866.391.8111 customerservice@grandandtoy.com or connect via our online Live Chat
grandandtoy.com
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Businesses looking to raise their profile, connect with the community, and access cost-saving member benefits are invited to this special Future Member Lunch and Learn to hear all about membership with the Burnaby Board of Trade. Enjoy a complimentary light lunch and then sit down with Paul, Marisol, Tessa and Cory at this orientation and get a concise overview of all the services and benefits that are available for BBOT members and what you and your business can get out of membership!
UPCOMING INFO SESSIONS Dates: April 7, April 29 and May 28 Time: Noon - 1:00 pm Location: BBOT Offices (201-4555 Kingsway) Register: Call 604.412.0100 or email admin@bbot.ca
THE VALUE OF MEMBERSHIP GROW YOUR NETWORK SAVE MONEY GAIN EXPOSURE
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* Valid after 11am at participating White Spot Restaurants until April 12th, 2015. Not to be combined with any other promotional offer. Plus taxes.
NORTH RD & LOUGHEED 4075 North Road 604-421-4620
KINGSWAY BURNABY 5550 Kingsway (3.5 blocks east of Metrotown) 604-434-6668
MARINE & BYRNE 7519 Market Crossing 604-431-5100
LOUGHEED & GILMORE 4129 Lougheed Hwy. 604-299-4423
NEW WESTMINSTER 610 - 6th Street 604-522-4800
KENSINGTON SQUARE View more 6500 Hastings Street with 604-299-2214