Going hour rate

[CWO (ret) Gilles Aubé]

I need to make a formal appraisal for work done on a 40mm gun.
What would be the hour rate?
This is for a tax credit and it has to be proofed and sure I will be challenge by the tax peoples.
I am open on any legal suggestions.

Gilles

[rob love]

Gilles: You cannot give a charitable receipt in Canada for labour performed. You can only give a receipt for the transfer of property. If the person doing the work provided any goods of value, ie paint, hardware, etc, you can give a receipt for those. But labour is not something you can give a receipt for. This has been ruled on by the courts, and no chartered accountant would touch such a receipt with a 10 foot pole. You would be putting your organization's charitable/gifts to the crown tax status at risk.

For a bit of a read on the subject, see here: http://www.cga-canada.org/en-ca/Abou..._taxforum.aspx

[maple_leaf_eh]

What is the rate of pay for a Master Gunner? An NCO with enough time-in-rank and years of service to make a fair assessment.

http://www.forces.gc.ca/en/caf-commu...pay-rates.page

Charge high-rate mileage, meals and incidentals.

http://www.tbs-sct.gc.ca/pubs_pol/hr...voyage-eng.asp

Charge a fair market rate for any tools or equipment you might need to complete the assessment.

Figure out as many days' rates for phone and internet as you need to complete your research.

And, leave something on the table if the negotiations get testy so you can 'sharpen your pencil'.

[rob love]

Terry
I am sure you are writing that with good intentions, but google "can you give a tax receipt for labour" and see what comes up. Or check the link I gave.....it makes it pretty clear.

Dozens of websites also make mention that they cannot give receipts for labour.

[maple_leaf_eh]

When I started writing, you had not replied.

[Bruce MacMillan]

There is a way to do this legally. You submit a bill and the organization issues you a cheque for your services. You then write a return cheque back to the organization (the cheques effectively cancel out). This makes it a donation of money and they can then issue you a tax receipt for the donation.

From the horses mouth:
http://www.cra-arc.gc.ca/chrts-gvng/...srvcs-eng.html

[rob love]

Yes, but you also have to claim the cheque given to you as income. In the end it will only give you a higher tax bracket with a very marginal return.

ie: you work for the charity, and they give you $1000. You give the $1000 back to the charity and get a tax receipt for a $1000 donation.

At tax time you must claim the $1000 as income and will pay approx 35% for income tax. (varies from province to province.....I believe Ontario workers simply give all their income directly to the Ontario government in order to fund failed hydro projects and for computer technicians to wipe out computer hard drives).

You then claim the $1000 tax deduction and get approx 35% return for the $1000 donation. You actually will get a few dollars more depending on the province, but at the end of the day the return is somewhat marginal.

Now if it was work for a political party, then you get some good rates of return, but not for a non-profit.

As well, does this end up forming an employee/employer relationship with the volunteer which will create certain liabilities and responsibilities, or is the volunteer treated like a contractor?