Padgett Business Services, the Small Biz Pros, provides professional small business accounting, tax preparation, bookkeeping, and payroll processing services in Mississauga in the province of Ontario, Canada.


"Padgett knows my business inside and out. In fact, sometimes I think they know more about my business than I do. And they are always there when I need them"


"Dependability was a critical factor for me when selecting a service provider. Padgett has exceeded my expectations"


"I remember thinking my Padgett representative really did his homework, because he was so plugged into the realities of small business. Then it dawned on me, he runs his own Padgett office, which is a small business. He's talking from experience".


"I sleep better at night with Padgett on my team. Taxes, Payroll, government compliance - I don't worry about those things anymore and now I'm able to really focus on running my business."


Integrity - This essential quality of our relationship will allow you to focus on what's most important: building and growing your business.


Integrity - This essential quality of our relationship will allow you to focus on what's most important: building and growing your business.


We understand that no two small businesses are alike. That's why we offer a complete range of services. We analyze your individual needs and put together the combination of services that works for you, the small business owner.

Where Your Success
Takes Root


TFSA's - What You Need To Know


As the 2010 tax season approaches, this is a good time to review your personal tax situation in the ‘age of austerity’ in the wake of the ‘great recession’.

One recent addition to the tax savings toolbox as of 2009 is the Tax Free Savings Account. You will find below some key points of interest as well as additional sources of information to allow you to understand how you can take full advantage of this new tax free investment and savings tool.

What are Tax Free Savings Accounts (TFSA's)?

A TFSA is a registered saving account that allows taxpayers to earn investment income tax free inside an account. Unlike a Registered Retirement Savings Account (RRSP), the contributions are not deductible for tax purposes; also the withdrawals from a TFSA are not taxable.

Anyone who is resident in Canada and is 18 years of age or older is eligible to contribute to a TFSA through an account at a bank, insurance company or credit union or trust company – the same institutions that manage RRSP accounts. To open an account, you would be required to provide a Social Insurance Number (SIN).

TFSA’s were introduced in 2009 and limit contributions to $5,000 in a calendar year. If no contributions have been made since 2009, you would be able to contribute up to $15,000 to your TFSA.

**It is important to know how much you have contributed and withdrawn in a particular year. Any over-contributions (over and above the annual limit of $5,000) will be subject to a penalty of interest at a rate of 1% per month that the amounts remain in the TFSA.

Recent Announcements by CRA Regarding TFSA’s

In October 2009, Jim Flaherty, the Minister of Finance announced proposed amendments the Income Tax Act to strengthen the rules around TFSA’s. These include applying strict rules on the impact of over-contributions and asset transfers between accounts.

Over contributions or contributions of non-qualifying investments and subsequent withdrawals from TFSA’s do not create additional contribution room to the TFSA account. Also any income earned in the TFSA and that is attributable to non-qualifying or prohibited investments will be taxed at regular income tax rates (eliminating the tax-free status).

How TFSA’s May Be of Benefit to You

Depending on your personal financial situation and financial goals, you may benefit from contributing to both the RRSP and the TFSA accounts.

If you have contributed the maximum amounts annually to your RRSP (currently 18% of annual earned income up to $22,000 per year FOR 2010), then the TFSA presents an additional opportunity to contribute to your savings and earn tax free investment income.

Any contributions you make to your RRSP account are taxed at your marginal tax rate when they are withdrawn. If you have a short term need for funds from your TFSA, you can withdraw funds tax-free.

You can also loan funds to your spouse to contribute to his or her TFSA, effectively splitting income between spouses.

For more information on Tax Free Savings Accounts, refer to the Canada Revenue Agency website, or consult with your local bank or financial planning professional.

Consult with your accountant or financial planning professional before making any changes to your RRSP or TFSA accounts to avoid any contribution or withdrawal penalties.

Stay tuned for more articles for personal and corporate taxpayers and small business owners!



Stephen Beech MBA, CMA

Government of Canada Proposes Technical Changes Concerning Tax-Free Savings Accounts, October 16,