This question came to me so I sent it on to my ex real estate partner, Ross McDonald of Lighthouse Realty in Abbotsford. Ross set up over 100 rentals in a dozen different strata buildings in Alberta and I figured that he would know the answer without my having to work at it. The question came to me at taxman at centa.com david ingram -----Original Message----- From: Ross McDonald [mailto:rossmcd at shaw.ca] Sent: Friday, October 15, 2004 2:37 PM To: taxman at centa.com Subject: RE: ARE audits mandatory in Alberta QUESTION: We are in the process of drafting a new set of bylaws for our complex in Southern Alberta. The question of audits came up. Is it mandatory by the Alberta Condo Act to conduct audits on our operations? We want to put a clause in the bylaws stating that an audit will only be performed if the board demeans it necessary or if an owner is concerned and requests an audit of the books. Is this legal? The act talks about audits but it does not say it is mandatory as per the condo act. ANSWER: Yes the Alberta Condo Act requires all Strata Corporations to have their financial statements audited each year. Many Strata Corps are of the opinion that this requirement places adds unnecessary accounting costs to the Strata. As a result, Strata Corps have been known to insert a bylaw that requires a Special Resolution to be passed that says in effect “If 75% of the owners at a general meeting are in agreement then the audit requirement can be waived.” More onerous in Alberta is the Condo Act requirement that there must be sufficient funds placed in the contingency reserve to allow for the replacement of all building components based on their life cycle. For example the annual contingency reserve amount would be comprised of 1/25th of the cost of a new roof, 1/35th of the cost of new windows, 1/20th of the cost of a new boiler and so on. These amounts would then be reviewed every 3 years and adjusted to take into account any changes in the rate of inflation. Ross McDonald Lighthouse Realty Abbotsford, BC ----------------------- This from "ask an income tax and immigration expert" from www.centa.com or www.jurock.com or www.featureweb.com. David Ingram deals on a daily basis with expatriate tax returns with: multi jurisdictional cross and trans border expatriate problems for the United States, Canada, Mexico, Great Britain, the United Kingdom, Kuwait, Dubai, Saudi Arabia, Thailand, Indonesia, Japan, China, New Zealand, France, Germany, Spain, Italy, Russia, Georgia, Brazil, Peru, Ecuador, Bolivia, Scotland, Ireland, Hawaii, Florida, Montana, Morocco, Israel, Iraq, Iran, India, Pakistan, Afghanistan, Mali, Bangkok, Greenland, Iceland, Cuba, Bahamas, Bermuda, Barbados, St Vincent, Grenada,, Virgin Islands, US, UK, GB, and any of the 43 states with state tax returns, etc. Rockwall, Dallas, San Antonio and Houston Texas Denmark, Finland, Sweden Norway Bulgaria Croatia Income Tax and Immigration Tips, Income Tax and ImmigrationWizard Income Tax and Immigration Guru Income Tax and Immigration Consultant Income Tax and Immigration Specialist Section 216(4) 216(1) NR6 NR-6 NR 6 Non-Resident Real Estate tax specialist expert preparer consultant expatriate anti money laundering money seasoning FINTRAC E677 E667 4789 4790 TDF-90 Reporting $10,000 cross border transactions ========================= David Ingram's US/Canada Services US / Canada / Mexico tax, Immigration and working Visa Specialists US / Canada Real Estate Specialists 4466 Prospect Road North Vancouver, BC, CANADA, V7N 3L7 Res (604) 980-3578 Cell (604) 657-8451 (604) 980-0321 Fax (604) 980-0325 Email to taxman at centa.com www.centa.com www.david-ingram.com Disclaimer: This question has been answered without detailed information or consultation and is to be regarded only as general comment. Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader and the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent and appropriately qualified legal practitioner or tax specialist in connection with personal or business affairs such as at www.centa.com. If you forward this message, this disclaimer must be included." Be ALERT, the world needs more "lerts" ============================== Alaska, Alabama, Arkansas, Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Garland, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico,New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon. 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Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader and the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent and appropriately qualified legal practitioner or tax specialist in connection with personal or business affairs such as at www.centa.com. If you forward this message, this disclaimer must be included." Be ALERT, the world needs more "lerts" ============================== --- Outgoing mail is certified Virus Free. Checked by AVG anti-virus system (http://www.grisoft.com). Version: 6.0.776 / Virus Database: 523 - Release Date: 10/12/04 -------------- next part -------------- An HTML attachment was scrubbed... URL: http://www.centa.com/CEN-TAPEDE/centapede/attachments/20041015/afbc834f/attachment-0001.htm
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