Physicians, avoid double taxation of your Doctors of BC Negotiated Benefits!
Written by Ray Lam, CIA, CPA, CGA
Doctors of BC has negotiated a number of benefits with the Government of BC to assist with the cost of practicing as a physician and preparing for retirement. These benefits include:
• Canadian Medical Protective Association (CMPA) Rebate Program;
• Continuing Medical Education (CME) Fund;
• Parental Leave Program (PLP); and
• Contributory Professional Retirement Savings Plan (CPRSP).
If the benefits are paid personally to the physician, a T4A is issued to the physician and the income should be included in the physician’s personal tax return.
If the CMPA, CME, or PLP benefits are paid to a corporation, a T4A will not be issued and the income will be included in the corporation’s income. In the case of the CPRSP benefit, if the benefit is deposited to an Individual Pension Plan a T4A will not be issued.
Each year, we discover new physician client’s may have the benefits paid to the corporation and a T4A continues to be issued to the physician personally. This issue may result in double taxation of these benefits and the double taxation remain undetected.
This issue can be resolved by:
• Signing into the Doctors of BC account and updating the bank account details;
• Completing a new Direct Deposit Form; or
• Contacting Doctors of BC.
Please feel free to contact us if you have any questions or concerns.