the wealthy doctor

Manfred Purtzki, CPA, CA, is a principal in the Vancouver office of Purtzki Johansen & Associates. He can be reached at: Manfred@purtzki.com or 604-669-7558.

Surprise attack Don’t be stunned by large GS T assessments

CRA is reassessing healthcare professionals for amounts paid for services that do not qualify as exempt medical services. The amounts assessed, including interest and penalties, can be well over $100,000. And the reassessments that relate to cost-sharing arrangements are particularly painful, because a simple restructuring of the arrangement would have avoided the GS T liability altogether.

Here’s an example. A locum works in the clinic and is allocated 100% of the fees charged to the patient. Out of the fees received, the locum pays the principal for using the clinic, the staff and equipment. And, in this case, the principal must remit GS T on the fees received from the locum.

On the other hand, when the locum and principal enter into a bona fide arrangement to share fees—irrespective of whether the locum or the principal is the initial recipient of the fees—CRA will not consider this to be a payment for the supply of administrative services made by the principal to the

locum. The underlying characteristic of this arrangement is an apportionment of the fee for the healthcare service. Thus, for the purposes of the GS T, the amounts apportioned between the two parties are not subject to tax. Before you start reorganizing the clinic structure to avoid paying tax, please consult with your CPA about setting up such a GS T-exempt arrangement. Similarly, cosmetic procedures that have no medical or reconstructive purpose are subject to GS T. You must register if you generate $30,000 or more of such taxable services over any four consecutive calendar quarters. Another scenario in which GS T may apply is when a doctor is paid to consult Doctors beware…not all medical services are tax exempt

in a litigation or act as an expert witness. One exception is that if the doctor actually examines the individual, even at the request of a third party, then the courts have held that a doctor-patient relationship has been created and GS T will not apply.

Additional services that a doctor might provide and will trigger GS T:

1 The doctor is paid to manage a medical office.

2 The doctor is paid an amount to

be on call at a retirement home or nursing home.

3 The doctor is paid to give lectures.

4 The doctor is paid in a consulting

capacity, for instance the development of a patent for a medical device.

And, be aware, if the CRA issues you a GS T reassessment, that amount owing is payable—even if you file a Notice of Objection. This differs from income tax, for which the debt owing and payment can be deferred and delayed by filing a Notice of Objection.

By understanding when and how GS T applies to healthcare services, you can save yourself the unwelcome surprise of an unexpected tax bill.

recruitment PHYSICIANS FOR YOU — LE ADERS IN PHYSICIAN RECRUITME NT No time to look for a new role? Call the trusted recruitment team. Our strong reputation is built on exceptional service and results. Locum, contract, long-term, city or rural, we have it all. Whether you are a Physician looking for roles across Canada, or a medical facility that requires Physicians, we can help. Let our 10 years of experience in Canada and our extensive knowledge of the licensure and recruitment processes work for you. View our current job postings on our website today. Website: www. physiciansforyou.com Office: (778) 475-7995 RADIOLOG ISTS — Winnip eg, Manit oba Radiology Consultants of Winnipeg Medical Corporation is seeking fellowship-trained

radiologists, certified by the Royal College of Physicians and Surgeons of Canada. Opportunities include oneweek locum tenens June to October 2020 and potential full-time roles for general and subspecialized radiologists. Radco is an established private radiology group based in Winnipeg, which owns and operates community clinics. Our radiologists are affiliated with the University of Manitoba, and provide professional services to several Shared Health Manitoba hospitals including the Health Sciences Centre, one of the largest tertiary care centres in Canada. Areas of practice include CT, X-ray, ultrasound, mammography, fluoroscopy, MRI, and interventional radiology. Interested radiologists please submit CV to: Margo Smith, Chief Operating Officer, Winnipeg, MB, MSmith@ radco-wpg.com.

trav el PROVENCE, FRANCE — YOU R VILL A Les Geraniums, a luxury 3-bedroom, 2 ½-bath villa, is your home in the heart of Provence. Expansive terrace with pool and panoramic views. New kitchen and bathrooms. Walk to lovely market town. One hour to Aix and Nice. Come and enjoy the sun of southern France! 604- 522-5196. villavar@telus.net

clockwise from top left Sunrise over Horseshoe Falls; Family-run Honsberger Estate Winery was originally a farm; Soaking in the vineyard views at Two Sisters; Locally caught pickerel on the menu at Vineland Estates; Boardwalk that parallels Class VI rapids along the Whitewater Walk

beyond the falls

After the spray of that famous waterfall, discover the rest of the Niagara Peninsula

story + photography by Lisa kadane

It’s just 80 metal steps from the top of the Niagara escarpment down into Niagara Glen, but it feels like a journey back in time. The lower I descend, the more the limestone cliff walls soar above me, revealing 250-million-year-old trilobite fossils imprinted into the easily eroded shale along the Cliffside Trail. I’m only seven kilometres from Niagara Falls, Canada’s most well known natural wonder visited by 12 million people annually. On this network of trails that cuts through a lush forest, however, I’m alone. The famous waterfall crashed down in this very spot some 8,000 years ago, but as the waters’ power eroded the land, the falls travelled south to their present location. In its place, a Carolinian forest of broad-leaf trees flourished thanks to the relatively warm and humid climate nurtured by the surrounding Great Lakes. I hike past tulip trees, a kind of magnolia, and 800-yearold white cedars. Moss covers everything from fallen logs to giant boulders. It feels downright Jurassic all the way to the river’s edge, where water courses down the Niagara Gorge in a tumult of rapids and eddies. It’s as though I’ve stumbled upon a secret world. I almost forget where I am until a jet boat packed with tourists whizzes up-river, snapping me back to reality.

This secluded hiking spot is one of many surprises I discover on the Niagara Peninsula. In the days that follow I’ll visit quaint wineries, a top-notch theatre in a postcard-cute town, and an educational museum, all close to the area’s namesake calling card. I first visited Niagara Falls as a teenager over three decades ago, on a day trip from Toronto. My mom and I posed for the obligatory misty photo close to the brink, and rode up to the top of the Skylon Tower for a birds-eye view of both Horseshoe Falls and American Falls. Then we called it a day. I have no memory of the Coney-Island-meets-Las-Vegas vibe of adjacent Clifton Hill, where tourists meander the midway, waiting in line to play dinosaur mini golf, ride the new multi-level go-kart speedway or visit the wax museum. In the past 30 years the Canadian side has been built up. There’s a new casino, and construction is nearly complete on an adjacent entertainment centre. You can even zipline above the Niagara River toward Horseshoe Falls for a thrill. The real draw, though, is still the falls. They’re even more magnificent than my childhood memory—a ceaseless torrent that churns 7,500 bathtubs worth of water over the brink every second. They create a constant mist, a deafening roar and an eternal rainbow that shifts between the American and Canadian border. Their power is mesmerizing and it’s easy to understand why this spectacle of nature has drawn daredevils, tourists and honeymooners since the 1820s. In fact, marriage proposals are still common onboard the Hornblower Niagara Cruises boats, which ferry poncho-clad sightseers into the mist of Horseshoe Falls multiple times a day.

I learn about the falls’ history of romance and derring-do in bits and bobs as our group explores the water works in different ways. We do the Journey Behind the Falls to travel through tunnels under Horseshoe Falls and feel the thundering vibrations as the surge of water shakes the bedrock above. Along the Whitewater Walk, a wooden boardwalk that parallels the Niagara River and its frothing Class VI rapids, interpretive signs describe the rapids, the region’s geology and the history of the falls’ barrel riders and tightrope walkers.

After a day or so of waterfall “immersion,” I’m ready to escape the crowds. It’s a quick drive to adorable Niagara-on-the Lake for shopping and theatre and, as a budding oenophile, I’m excited to visit nearby wine country. About the same time I was admiring Niagara Falls with my mom, the first wine grapes were being planted in the region. There are now 97 VQA wineries on the Niagara Peninsula, from boutique operations to large estates. The same summer climate that sustains a

Carolinian forest is also ideal for growing wine grapes such as Riesling and Cabernet Franc, but being in Canada poses unique challenges.

“We fight nature here all the time,” confides Kelly Mason, the winemaker at Honsberger Estate Winery while we sip the 2018 rosé at the outdoor patio bistro.

Humidity from the surrounding lakes, combined with an early frost some years, can spell trouble for grapes. Winemakers work with the conditions by positioning their vines to take advantage of natural airflow and by vigilantly watching the fall forecast. In addition to grapes, everything else grows well here, from peaches and apples if you go Discover Niagara’s charms at niagarafalls tourism.com and southern Ontario’s at ontario travel.net.

Solutions

Cloud-based clinical speech recognition has at last come to Canada!

 Dictate from almost anywhere.

 Use your Smartphone as a microphone.

 Automatic accent detection.

 No per-device limits.

 Installs in minutes.

Contact us today for a free trial! 604-264-9109 | 1-888-964-9109 speakeasysolutions.com Professional Speech Technology Specialists

to most vegetables. In fact, Niagara has become somewhat of a foodie paradise. “One thing that’s grown with the wine is the food industry in Niagara,” confirms David Hulley over lunch at Vineland Estates Winery. “We live farm to table here.”

We dine on red pepper bisque paired with sauvignon blanc, then move on to Lake Erie pickerel washed down with buttery chardonnay. For dessert, there’s light vanilla bean cheesecake served with sweet Vidal Icewine. It’s all delicious. The inspired dining and wine sipping carry on at Peller Estates and Two Sisters Vineyards in Niagara-on-the-Lake, on the southern shore of Lake Ontario.

The man versus nature theme continues at the Welland Canals Centre in St. Catharines, where humans’ quest to tame the land is detailed with historic accuracy. The Great Lakes have always been a way to ship goods between Thunder Bay and the Atlantic Ocean via the St. Lawrence River, but getting into the upper lakes was difficult because of Niagara Falls.

The solution was the Welland Canal, an engineering marvel completed in 1923. Its eight concrete locks rise up 99 metres in 43 kilometres (the highest canal lift west of China) and make it comparatively easy to transport natural resources east, or manufactured products west, along the inland waterway. It’s interesting to think of Niagara Falls as an obstacle to be overcome rather than a wonder to witness.

On our last night in the area we watch a performance of Brigadoon at the renowned Shaw Festival Theatre in Niagara-on-the-Lake. The classic musical is a tale of adventurers who get lost in the Scottish highlands and end up travelling back in time to an enchanted town called Brigadoon, which isn’t what it seems. It’s an apt metaphor for my return to Niagara Falls, which has been its own journey back in time. I’ve learned about daredevils and romantics, winemakers and engineers, and I’ve discovered my own secret and ancient world at Niagara Glen. Though the spectacular waterfall is what draws people here, upon arrival they realize the region is so much more than a natural wonder.