Friday, January 27, 2012 9:34 PM

In running any enterprise we have found it most helpful to look at fundamental cash positions. In other words to plan based on the amount of cash coming in to an enterprise or project and the amount of cash expected to leave it.

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2012-01-23: The Weekly Take


January 23rd 2012
A look at the performance of financial markets as seen through the S&P 100 (OEX)

This week the Federal Open Market Committee (FOMC) meeting on Wednesday will determine much of the market activity for the week. The US central bank is scheduled to release its outlook for the economy.

The FMOC economic projections will include the central bank’s expectations for the Federal funds rate.

Should You Make a Charitable Donation Personally or Through Your Corporation?


Harvey Jones is the owner/manager of an incorporated business who received a telephone call one evening from his “friendly” telemarketer. On most nights Harvey, a kind and gentle man, pretends that although he answered the phone, “Mr. Jones” is not “in” at the moment and suggests that the telemarketer call back some other time. In his heart, however, he hopes that the telemarketer will ultimately take his name off the list and never call him again. He vows to himself that he will sign up for the “do not call” list, first thing the next morning.

How to handle your E-mail



Many readers of this newsletter will receive their issues via email. Even if they don’t it is a good guess that they will spend as much as two hours of their working day on the computer attending to this instantaneous mode of communication. Given this fact it is imperative to understand the true cost of e-mail at work.

The Privacy Act



As of January 1, 2004 Canadians who operate a business in Canada must recognize their duty to safeguard the privacy of personal information they collect, use, disclose and retain in the course of their commercial activities. This must be done in a manner that a “reasonable person” would consider appropriate in the circumstances.

Taxpayers' attempts


  • A woman tried to write off toilet paper as a medical expense (Canada);
  • A Vancouver man invented a wife on his personal tax returns for several years (Canada);
  • Tax auditors went to various nightclubs and bars to make sure the exotic dancers were correctly reporting their earnings. The auditors traveled in pairs. It is understood that although the audit was very popular with staff, it was eventually halted because of a lack of results (Canada, United States);

Perry Mason and Tax Law


Those of you who remember Perry Mason episodes on TV will recall how the public prosecutor, Hamilton Burger, had to prove his case beyond a reasonable doubt. If he didn't, the defendant was acquitted.

Many think the same logic applies to tax law. In other words, the Secretary, if you are in the US, or the Minister, if you are in Canada, has to prove the case against you. If they can't, tough cookies, you keep your money.