RE: Ministry of Ontario Notice

Hi Sam,

 

Is this in regards to Q2 GST? Will you be filing? If not, can you please send Q2 information to Cecilia and Renee at KPMG so they can file?

 

Thank you,

 

Brian

 

From: Singh, George <georgesingh@kpmg.ca> 
Sent: Wednesday, July 26, 2023 1:59 PM
To: Sam Naffaa <hcao.accounting@thekey.com>
Cc: brian.fialko@thekey.com; Carolina Orosa <corosa@thekey.com>; daniel.barakat@thekey.com; Timothy Thomas <tt@thekey.com>
Subject: RE: Ministry of Ontario Notice 

 

Hi Sam,

 

Just to clarify I do not require any HST information as I am assisting with the payroll/EHT matters.  I understand the HST is being worked on by other KPMG colleagues.

 

Best Regards,

George Singh 

Senior Manager, Indirect Tax

 

KPMG LLP  

333 Bay Street, Suite 4600

Toronto, ON. M5H 2S5

P: (416)777-3900

F: (416)777-8226

*  <mailto:georgesingh@kpmg.ca> georgesingh@kpmg.ca

  
Please consider the environment before printing this e-mail 

 

From: Sam Naffaa <hcao.accounting@thekey.com <mailto:hcao.accounting@thekey.com> > 
Sent: Wednesday, July 26, 2023 1:53 PM
To: Singh, George <georgesingh@kpmg.ca <mailto:georgesingh@kpmg.ca> >
Cc: brian.fialko@thekey.com <mailto:brian.fialko@thekey.com> ; Carolina Orosa <corosa@thekey.com <mailto:corosa@thekey.com> >; daniel.barakat@thekey.com <mailto:daniel.barakat@thekey.com> ; Timothy Thomas <tt@thekey.com <mailto:tt@thekey.com> >
Subject: Re: Ministry of Ontario Notice [EXTERNAL]

 

Hi George, 

Attached the HST confirmation of Arya Healthy Living Oakville Inc for the last quarter. Unfortunately, I don't have access to do filling. 

Regards, 

Sam Naffaa, CMA

905.337.1288


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On Wed, Jul 26, 2023 at 1:33 PM Singh, George <georgesingh@kpmg.ca <mailto:georgesingh@kpmg.ca> > wrote:

Thanks Sam,

 

It seems that we may need to request the EHT annual return for the Arya Healthy Living Oakville Inc account which is 767800113TE0001.  I assume you have not received that annual return to complete but may have filed the monthly returns in the past.

 

Are you able to complete the filings for Arya Healthy Living Inc. and SJD Care Services Inc. as I had sent those annual returns in the previous correspondences.  You will need to sign-off on the annual return and request payment for the outstanding differences.  Once completed, can you send a copy of the return to us and we will advise the Ministry in order to stop collection notices?

 

In terms of the HST fillings, I believe my other KPMG colleagues are assisting with those matters.

 

Best Regards,

George Singh 

Senior Manager, Indirect Tax

 

KPMG LLP  

333 Bay Street, Suite 4600

Toronto, ON. M5H 2S5

P: (416)777-3900

F: (416)777-8226

*  <mailto:georgesingh@kpmg.ca> georgesingh@kpmg.ca

  
Please consider the environment before printing this e-mail 

 

From: Sam Naffaa <hcao.accounting@thekey.com <mailto:hcao.accounting@thekey.com> > 
Sent: Wednesday, July 26, 2023 1:22 PM
To: Singh, George <georgesingh@kpmg.ca <mailto:georgesingh@kpmg.ca> >
Cc: brian.fialko@thekey.com <mailto:brian.fialko@thekey.com> ; Carolina Orosa <corosa@thekey.com <mailto:corosa@thekey.com> >; daniel.barakat@thekey.com <mailto:daniel.barakat@thekey.com> ; Timothy Thomas <tt@thekey.com <mailto:tt@thekey.com> >
Subject: Re: Ministry of Ontario Notice [EXTERNAL]

 

Hi George, I took the SJD number from the below report. However, the number which you have is the correct one and unfortunately I don't have the  HST information of SJD as I am not doing it. I think Brian or Daniel have it.

I have updated the numbers as in the below screenshot. 

 



 

 



Regards, 

Sam Naffaa, CMA

905.337.1288


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On Wed, Jul 26, 2023 at 12:41 PM Singh, George <georgesingh@kpmg.ca <mailto:georgesingh@kpmg.ca> > wrote:

Thanks Sam.

 

It appears that SJD Care Services Inc. has an different account (812319374TE0001) rather than what your records show below (873711170).  

 

Can you confirm based on your prior EHT filings what number(s) have been used for SJD Care Inc and if possible provide us with sample returns for the 3 accounts? We will need to request the annual returns from the Ministry accordingly so we can complete.

 

 

 

Best Regards,

George Singh 

Senior Manager, Indirect Tax

 

KPMG LLP  

333 Bay Street, Suite 4600

Toronto, ON. M5H 2S5

P: (416)777-3900

F: (416)777-8226

*  <mailto:georgesingh@kpmg.ca> georgesingh@kpmg.ca

  
Please consider the environment before printing this e-mail 

 

From: Sam Naffaa <hcao.accounting@thekey.com <mailto:hcao.accounting@thekey.com> > 
Sent: Wednesday, July 26, 2023 12:33 PM
To: Singh, George <georgesingh@kpmg.ca <mailto:georgesingh@kpmg.ca> >
Cc: brian.fialko@thekey.com <mailto:brian.fialko@thekey.com> ; Carolina Orosa <corosa@thekey.com <mailto:corosa@thekey.com> >; daniel.barakat@thekey.com <mailto:daniel.barakat@thekey.com> ; Timothy Thomas <tt@thekey.com <mailto:tt@thekey.com> >
Subject: Re: Ministry of Ontario Notice [EXTERNAL]

 

Hi George, Yes, I have mentioned the third one in my above screenshot. It is 767800113TE0001.


Regards, 

Sam Naffaa, CMA

905.337.1288


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On Wed, Jul 26, 2023 at 12:29 PM Singh, George <georgesingh@kpmg.ca <mailto:georgesingh@kpmg.ca> > wrote:

Thanks Sam,

 

Can you verify if the 3 highlighted entities have separate EHT filings and what those account numbers would be?

 

I understand that SJD Care Services Inc. has an existing account being 812319374TE0001 and Arya Healthy Living Inc’s account is 824550594TE0001.

 

If there is a separate third account, we may need to file accordingly and request the returns in order to do so.

 

 

Best Regards,

George Singh 

Senior Manager, Indirect Tax

 

KPMG LLP  

333 Bay Street, Suite 4600

Toronto, ON. M5H 2S5

P: (416)777-3900

F: (416)777-8226

*  <mailto:georgesingh@kpmg.ca> georgesingh@kpmg.ca

  
Please consider the environment before printing this e-mail 

 

From: Sam Naffaa <hcao.accounting@thekey.com <mailto:hcao.accounting@thekey.com> > 
Sent: Wednesday, July 26, 2023 12:23 PM
To: Singh, George <georgesingh@kpmg.ca <mailto:georgesingh@kpmg.ca> >
Cc: brian.fialko@thekey.com <mailto:brian.fialko@thekey.com> ; Carolina Orosa <corosa@thekey.com <mailto:corosa@thekey.com> >; daniel.barakat@thekey.com <mailto:daniel.barakat@thekey.com> ; Timothy Thomas <tt@thekey.com <mailto:tt@thekey.com> >
Subject: Re: Ministry of Ontario Notice [EXTERNAL]

 

Hi George, Thanks for your email. Those are three entities not two.Please see below



 

Regards, 

Sam Naffaa, CMA

905.337.1288


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On Wed, Jul 26, 2023 at 11:33 AM Singh, George <georgesingh@kpmg.ca <mailto:georgesingh@kpmg.ca> > wrote:

Hi Sam,

 

Hope you are doing well.

 

I have reviewed the calculations and agree with the figures.   I understand that SJD care may have a separate EHT account from that of Arya Healthy Living and thus may need to file the annual returns separately.

 

I have attached the annual SJD Care Services return for your completion/signature which I can submit to the Ministry once completed.  Can you verify whether Arya Healthy Living has filed EHT returns separately from SJD Care Services Inc in the past – if so, the annual return for Arya Healthy living will need to be filed separately.  I understand that Arya Healthy Living does have a separate EHT account as that was the initial request from the Ministry advising the return was not completed- see attached return for your reference.

 

My thought is that you will need to group the 2 entities separate and file accordingly (as shown in the report below).

 


 

Total report 

Othe beneifts

Exp. Reim. And KMs

Total remuneration

 

Paid 

T4 report

Variance 


Arya Healthy Living Inc/Home Care Assistance Waterloo

    2,284,785.72 

	                    (5,279.00)

             2,279,506.72 

            34,700.38 

    34,694.76 

  2,279,506.72 

                      -   


Arya Healthy Living Oakville Inc

    1,390,514.99 

	                    (8,520.19)

             1,381,994.80 

            17,198.90 

    17,198.83 

  1,381,994.80 

                      -   


SJD CARE SERVICES INC (File 1)

    1,363,512.56 

          1,123.75 

                    (3,601.85)

             1,361,034.46 

	      4,497.00 

  1,361,034.46 

                      -   


SJD CARE SERVICES INC ( File 2)

    3,779,562.33 

	                  (21,486.32)

             3,758,076.01 

	    37,469.97 

  3,758,076.01 

                      -   


Total

    8,818,375.60 

         1,123.75 

                 (38,887.36)

             8,780,611.99 

            51,899.28 

    93,860.56 

  8,780,611.99 

                      -   

									

Exemption

			            (1,000,000.00)

				
									

Net

			             7,818,375.60 

				
			
Rate

1.95%

				
									
			
EHT 2022

                 152,458.32 

				
			
paid 

                   93,860.56 

				
			
Balance to pay 

                   58,597.76 

				
									

 

 

Best Regards,

George Singh 

Senior Manager, Indirect Tax

 

KPMG LLP  

333 Bay Street, Suite 4600

Toronto, ON. M5H 2S5

P: (416)777-3900

F: (416)777-8226

*  <mailto:georgesingh@kpmg.ca> georgesingh@kpmg.ca

  
Please consider the environment before printing this e-mail 

 

From: Sam Naffaa <hcao.accounting@thekey.com <mailto:hcao.accounting@thekey.com> > 
Sent: Monday, July 24, 2023 12:48 PM
To: Singh, George <georgesingh@kpmg.ca <mailto:georgesingh@kpmg.ca> >
Cc: brian.fialko@thekey.com <mailto:brian.fialko@thekey.com> ; Carolina Orosa <corosa@thekey.com <mailto:corosa@thekey.com> >; daniel.barakat@thekey.com <mailto:daniel.barakat@thekey.com> ; Timothy Thomas <tt@thekey.com <mailto:tt@thekey.com> >
Subject: Re: Ministry of Ontario Notice [EXTERNAL]

 

Hi George, 

Please attach an excel file including initial calculation for your review and additional sheets including screenshots of the reports to make it easier for you to navigate the attached pdf reports. Please Let me know in case you need further information or clarification. 


Regards, 

Sam Naffaa, CMA

905.337.1288


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On Thu, Jul 20, 2023 at 5:18 PM Sam Naffaa <hcao.accounting@thekey.com <mailto:hcao.accounting@thekey.com> > wrote:

Sounds good, thanks!


Regards, 

Sam Naffaa, CMA

905.337.1288


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On Thu, Jul 20, 2023 at 5:03 PM Singh, George <georgesingh@kpmg.ca <mailto:georgesingh@kpmg.ca> > wrote:

Thanks Sam.

 

I will review once you prepare the numbers.

 

Best Regards,

George Singh 

Senior Manager, Indirect Tax

 

KPMG LLP  

333 Bay Street, Suite 4600

Toronto, ON. M5H 2S5

P: (416)777-3900

F: (416)777-8226

*  <mailto:georgesingh@kpmg.ca> georgesingh@kpmg.ca

  
Please consider the environment before printing this e-mail 

 

From: Sam Naffaa <hcao.accounting@thekey.com <mailto:hcao.accounting@thekey.com> > 
Sent: Thursday, July 20, 2023 5:01 PM
To: Singh, George <georgesingh@kpmg.ca <mailto:georgesingh@kpmg.ca> >
Cc: brian.fialko@thekey.com <mailto:brian.fialko@thekey.com> ; Carolina Orosa <corosa@thekey.com <mailto:corosa@thekey.com> >; daniel.barakat@thekey.com <mailto:daniel.barakat@thekey.com> ; Timothy Thomas <tt@thekey.com <mailto:tt@thekey.com> >
Subject: Re: Ministry of Ontario Notice [EXTERNAL]

 

Hi George,  

I don't think that we have changed the account. I will prepare the numbers for the whole year 2022. 

Please let me know if you have any notes or advice. 


Regards, 

Sam Naffaa, CMA

905.337.1288


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On Thu, Jul 20, 2023 at 4:31 PM Singh, George <georgesingh@kpmg.ca <mailto:georgesingh@kpmg.ca> > wrote:

Hi Sam,

 

You would only calculate the period of April to December if you had a separate account from the previous owners  i.e., assume the previous owners had their own account and they were not part of any closing/sale transaction.

 

If you assumed the prior accounts than you would need to consider the January through December periods when determining remuneration.

 

Hope this helps.

 

Best Regards,

George Singh 

Senior Manager, Indirect Tax

 

KPMG LLP  

333 Bay Street, Suite 4600

Toronto, ON. M5H 2S5

P: (416)777-3900

F: (416)777-8226

*  <mailto:georgesingh@kpmg.ca> georgesingh@kpmg.ca

  
Please consider the environment before printing this e-mail 

 

From: Sam Naffaa <hcao.accounting@thekey.com <mailto:hcao.accounting@thekey.com> > 
Sent: Thursday, July 20, 2023 4:27 PM
To: Singh, George <georgesingh@kpmg.ca <mailto:georgesingh@kpmg.ca> >
Cc: brian.fialko@thekey.com <mailto:brian.fialko@thekey.com> ; Carolina Orosa <corosa@thekey.com <mailto:corosa@thekey.com> >; daniel.barakat@thekey.com <mailto:daniel.barakat@thekey.com> ; Timothy Thomas <tt@thekey.com <mailto:tt@thekey.com> >
Subject: Re: Ministry of Ontario Notice [EXTERNAL]

 

Thanks George! Just received a call from the ministry of finance and they said if we owe an amount to them we will pay 10% monthly on it. However, I have discussed with her the change in the ownership. She said the pre owners has to file the period from January 1st to March 31st which they didnt do it yet and we have to file the rest period of the year. Do you want me to calculate the total remuneration paid to employees for the period from April 1st to December 31st or the whole year 2022? 


Regards, 

Sam Naffaa, CMA

905.337.1288


Please note my email has changed:


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On Thu, Jul 20, 2023 at 4:15 PM Singh, George <georgesingh@kpmg.ca <mailto:georgesingh@kpmg.ca> > wrote:

Hi Sam,

 

Your understanding is correct as this applies to Ontario remuneration.

Please note, under the EHT Act, employers are required to pay EHT on the total remuneration paid to employees who report for work at a permanent establishment (‘PE’)  of the employer in Ontario, and to employees who do not report for work at a PE of the employer, but who are paid from or through a PE of the employer in Ontario. 

 

Best Regards,

George Singh 

Senior Manager, Indirect Tax

 

KPMG LLP  

333 Bay Street, Suite 4600

Toronto, ON. M5H 2S5

P: (416)777-3900

F: (416)777-8226

*  <mailto:georgesingh@kpmg.ca> georgesingh@kpmg.ca

  
Please consider the environment before printing this e-mail 

 

From: Sam Naffaa <hcao.accounting@thekey.com <mailto:hcao.accounting@thekey.com> > 
Sent: Thursday, July 20, 2023 4:12 PM
To: Singh, George <georgesingh@kpmg.ca <mailto:georgesingh@kpmg.ca> >
Cc: brian.fialko@thekey.com <mailto:brian.fialko@thekey.com> ; Carolina Orosa <corosa@thekey.com <mailto:corosa@thekey.com> >; daniel.barakat@thekey.com <mailto:daniel.barakat@thekey.com> ; Timothy Thomas <tt@thekey.com <mailto:tt@thekey.com> >
Subject: Re: Ministry of Ontario Notice [EXTERNAL]

 

Thank you George for the information and clarification. I will gather the information and come back to you but I want to confirm first. This is applicable for Ontario locations just. Is this correct? 


Regards, 

Sam Naffaa, CMA

905.337.1288


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On Thu, Jul 20, 2023 at 8:36 AM Singh, George <georgesingh@kpmg.ca <mailto:georgesingh@kpmg.ca> > wrote:

Hi Sam/Brian,

 

Hope you are doing well.  

 

Thanks for sending the 2022 year payroll report for Arya Healthy Living.

 

I wanted to provide details on the EHT rules (see below) for your consideration.

Under the EHT Act, employers are required to pay EHT on the total remuneration paid to employees who report for work at a permanent establishment (‘PE’)  of the employer in Ontario, and to employees who do not report for work at a PE of the employer, but who are paid from or through a PE of the employer in Ontario. 

Remuneration includes all payments, benefits and allowances received or deemed to be received, that would be included in income by reason of section 5, 6 or 7 of the Income Tax Act (Canada) (‘ITA’), or would be required if the individual were resident in Canada.

Generally, EHT remuneration includes the following:

*	salaries and wages 
*	bonuses, commissions and other similar payments 
*	advances of salaries and wages 
*	vacation pay 
*	gratuities paid through an employer 
*	taxable allowances and benefits 
*	directors' fees 
*	payments for casual labour 
*	amounts paid by an employer to top up benefits 
*	stock option benefits 
*	employer-paid contributions to a Registered Retirement Savings Plan (RRSP) 
*	employer-paid group life insurance premiums

It is important to note that the $1M exemption (not $500k) would apply to all associated group of companies and I am not sure whether that had been considered by any of the other associated companies.  If the remuneration of the associated group of companies was in excess of the $1M limit, I believe you would not be able to use the annual exemption.  The rules for associated corporations, under section 256 of the ITA are used to determine whether or not employers are associated for EHT purposes. Although these rules refer to corporations, their application is extended under the Employer Health Tax Act to include individuals, partnerships and trusts.  My thought is that you will need to gather the EHT returns and payroll reports  for all associated companies in order to claim the exemption accordingly.  I was in discussions with the Ministry and they have provided us with the annual EHT return and statement (see attached) for SJD Services Care Inc. and you will note that for the 2022 year that $42,005.37 was remitted on account.

As the Ministry, has your T4 summary figures for the 2022 year they most likely are expecting that your remuneration totals will be similar to what was reported for that years i.e. the $1,379,864.80 figure times the EHT rate of 1.95% less any exemption (if applicable).

Effective January 1, 2014, the amount of annual Ontario payroll that was exempt from EHT increased from $400,000 to $450,000. The exemption was eliminated for private‑sector employers with annual Ontario payrolls over $5 million. The Ontario government increased the EHT exemption due to the special circumstances caused by the coronavirus (COVID-19) in Ontario.  For 2020 to 2028, eligible employers are exempt from EHT on the first $1,000,000 of total Ontario remuneration each year.

You can claim the tax exemption if:

*	you are an eligible employer as defined under the EHT Act
*	you pay income taxes
*	your Ontario payroll for the year (including the payroll of any associated employers) is less than $5 million or you are a registered charity
*	you are not under the control of any level of government
*	your board of directors does not include any municipal representatives

In terms of filing the returns for Arya Healthy Living and SJD Services Care Inc. we will need to consider payroll for all associated companies and determine if the exemption would apply and whether any associated entity will be sharing the $1M exemption (if applicable).  If payroll exceeds the annual exemption limit than no exemption will be available for the associated group of companies.  Once we have the payroll summaries for all companies, we can prepare the annual returns for your signature and send to the Ministry of Finance.

Hope this helps.   

 

 

 

Best Regards,

George Singh 

Senior Manager, Indirect Tax

 

KPMG LLP  

333 Bay Street, Suite 4600

Toronto, ON. M5H 2S5

P: (416)777-3900

F: (416)777-8226

*  <mailto:georgesingh@kpmg.ca> georgesingh@kpmg.ca

  
Please consider the environment before printing this e-mail 

 

From: Sam Naffaa <hcao.accounting@thekey.com <mailto:hcao.accounting@thekey.com> > 
Sent: Wednesday, July 19, 2023 5:23 PM
To: brian.fialko@thekey.com <mailto:brian.fialko@thekey.com> 
Cc: Singh, George <georgesingh@kpmg.ca <mailto:georgesingh@kpmg.ca> >; Carolina Orosa <corosa@thekey.com <mailto:corosa@thekey.com> >; daniel.barakat@thekey.com <mailto:daniel.barakat@thekey.com> ; Timothy Thomas <tt@thekey.com <mailto:tt@thekey.com> >
Subject: Re: Ministry of Ontario Notice [EXTERNAL]

 

Hi Brian, Please see the below information for filling the EHT. 

Attached the last payroll report for the year 2022. As you can see the total payroll was 1,379,864.80 (1,388,384.99- 6,497.02 exp. reimbursement - 2,023.17 Mileages KM).Taxable amount for EHT equal to 879,864.80 (1,379,864.80 -500,000 exempt limit). 

EHT = 879,864.80 *1.95% = $17,573.36. The same amount has been paid through Payworks (Payroll software) to the Ministry of finance and just the filling is pending. Please see the below screenshot. and let me know in case you need any further information. 

This is for Arya Healthy Living Oakville Inc  please let me know if you need the same for the Waterloo. 

 



Regards, 

Sam Naffaa, CMA

905.337.1288


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On Wed, Jul 19, 2023 at 1:37 PM <brian.fialko@thekey.com <mailto:brian.fialko@thekey.com> > wrote:

Hi Sam,

 

Can you please assist with the below? Do you know who has authorization to sign on behalf of the Ministry of Finance?

 

Carolina,

 

For Orofresh, would you know how as authorization sign on behalf of the Ministry of Finance?

 

Thank you both for your help,

 

Brian

 

From: Timothy Thomas <tt@thekey.com <mailto:tt@thekey.com> > 
Sent: Wednesday, July 19, 2023 1:33 PM
To: Singh, George <georgesingh@kpmg.ca <mailto:georgesingh@kpmg.ca> >; Brian Fialko <brian.fialko@thekey.com <mailto:brian.fialko@thekey.com> >
Subject: Re: Ministry of Ontario Notice

 

Hi George,

 

I'm not the appropriate person to assist with this. 

 

adding in @Brian Fialko <mailto:brian.fialko@thekey.com>  who I hope can.

 

On Wed, Jul 19, 2023 at 1:28 PM Singh, George <georgesingh@kpmg.ca <mailto:georgesingh@kpmg.ca> > wrote:

Hi Tim,

 

We have submitted the authorizations and have spoken with Dashika Paramanathan (collections officer) at the Ministry of Finance in regards to the Arya Healthy Living and SJD Services Care Inc EHT accounts.

 

Can you please check you in-house accounts payable system and verify what was submitted for the 2 above mentioned EHT accounts for the 2022 year?  Additionally, are you able to provide the payroll year-end summary reports for those accounts for the 2022 year so we can file the EHT year-end returns based on the gross remuneration paid to employees?

 

 

 

Best Regards,

George Singh 

Senior Manager, Indirect Tax

 

KPMG LLP  

333 Bay Street, Suite 4600

Toronto, ON. M5H 2S5

P: (416)777-3900

F: (416)777-8226

*  <mailto:georgesingh@kpmg.ca> georgesingh@kpmg.ca

  
Please consider the environment before printing this e-mail 

 

From: Timothy Thomas <tt@thekey.com <mailto:tt@thekey.com> > 
Sent: Wednesday, July 12, 2023 1:34 PM
To: Singh, George <georgesingh@kpmg.ca <mailto:georgesingh@kpmg.ca> >
Subject: Fwd: Ministry of Ontario Notice [EXTERNAL]

 

 

 

---------- Forwarded message ---------
From: Timothy Thomas <tt@thekey.com <mailto:tt@thekey.com> >
Date: Tue, Jun 27, 2023 at 12:01 PM
Subject: Ministry of Ontario Notice
To: Brian Fialko <brian.fialko@thekey.com <mailto:brian.fialko@thekey.com> >, Woolley, Jessica A <jwoolley@kpmg.ca <mailto:jwoolley@kpmg.ca> >

 

Good morning Jessica,

 

We received the attached notice from the Ministry of Ontario regarding our Employer Health Tax.

 

Please advise,

Tim




 

-- 


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Head of Canada Division


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