Over the years, a major goal of these editorials and the Opus Newsletter overall has been to assist in the professional development of artists, covering topics such as taxation as Canadian laws affect visual artists, accounting and marketing practices and copyright. As well, this publication has always championed Canadian Artists? Representation (CARFAC), Canada?s national professional organization for visual artists ? and in particular, CARFAC?s Copyright Collective. The Copyright Collective is the agency?s greatest or most practical service for visual artists (see www.carfac.ca). Well, I hope you all learned your lessons. At least, I hope all of you BC visual artists learned the lessons discussed in past Opus Newsletters concerning Revenue Canada.

When Toni Onley passed away recently, I wrote a eulogy for him for this newsletter. In it, I mentioned how proud he was of his battle with Revenue Canada. Winning his fight with Revenue Canada changed the practices of the agency. He won a fight that served all creative artists. His enduring legacy is that all artists are not taxed on their unsold inventory. Another aspect of his legacy is that the issue kind of demonized Revenue Canada for artists, so it was not surprising to read a note that artist A.R. sent to Artichoke publisher Paula Gustafson. A.R. was concerned about a current practice of Revenue Canada.

In August 2003, A.R. was audited by a Revenue Canada auditor who demonstrated a profound sense of ignorance of the life/business of being an artist. She was not discourteous at all, just completely lacking in understanding of how the business of being an artist differs from being a business that sells widgets. But it was not the fact that she was audited or the fact that her audit officer was unfamiliar with tax law concerning artists, which concerned A.R. She was upset for a completely different reason. What upset her was that several of her fellow artists in the Victoria area were also audited, and in conversation together, they came to believe they were being targeted because of their presence in a directory of artists that they
published together.

I spoke at length with Ms. R, and she was very open about everything. She is a committed, savvy, artist who had the wisdom at the commencement of her career to hire an accountant and to carefully track the expenses and revenue extending from her practice as an artist. From the point of view of the auditor, her records were in order and she was not penalized at all. As I said, her concern was that the marketing initiative that she and her colleagues took in publishing a directory of themselves, had led to their being targeted for audits by Revenue Canada.

Their concern was not my concern. Revenue Canada has a longstanding practice of concentrating on specific businesses when conducting the random audits that is part of their responsibilities. Were they to choose architects for scrutiny, they could use the membership list of a professional association or the phone book to locate architectural firms or self-employed architects. Performing artists are easy to spot through programs and their membership in professional associations. But when it comes to visual artists, it is hard for everyone from statisticians to advertisers to Revenue Canada to find them. I am not surprised, therefore, to learn from A.R. that six artists out of fourteen in her directory have been audited by Revenue Canada,
so far.

The point in writing this editorial for me this month is to share with you what I learned in talking this through with the delightful A.R. and that is all artists should have at their disposal, for just such an occasion, printed and authoritative information that explains the tax rights of visual artists. They should share with their accountant (unless they know their accountant to be VERY knowledgeable on the important interpretation rulings of Revenue Canada concerning visual artists), and with any Revenue Canada auditor.

Tax law can be very vague, so Revenue Canada issues official ?Interpretation Bulletins? when the law is clarified by means of policy changes or as a result of interpretation battles waged in our law courts. There are three Interpretation Bulletins of importance to visual artists. They are 504R2 (about ?reasonable expectation of profit?), 514 (about workspace in home expenses) and 473 (the ?Toni Onley? bulletin about inventory). I was able to get these forms online from
www.cra-arc.gc.ca/formspubs/menu-e.html. These three documents are essential reading for professional visual artists, their accountants and auditors. Had A.R. had them handy, she would have had to do a lot less teaching and convincing. These bulletins are as important for all artists as is pigment, graphite, canvas and/or paper.

It would appear from the experience of A.R. and her friends, that artists in the Victoria area, or in BC and who are in a directory might be wise to ensure their affairs are in order. If you don?t have a copy of the Information Bulletins, get one. It?s a good idea to be safe.

Quite a while ago, I got a beautiful letter from Katherina Ortner. She wrote to me because she was leaving town and wanted to say goodbye to the person whose editorials she had been reading every month. She felt like she knew me she said in one of the nicest letters I have ever received as the Opus Newsletter editorial writer. Sadly, there was no return address, so I wanted to take time in this space to thank her for writing a letter that I have saved and re-read several times. I hope, Katherina, that you read this, or that someone you know reads this and tells you for me that your letter meant a great, great deal to me.

Writing this column every month has brought so much to my life. I very, very often have people coming up and introducing themselves to me because they have been reading my editorials for so many years. It has always been an overwhelmingly pleasant experience. And I thank you for the many letters and e-mails that I have received, and Opus for this forum that has done so much for us all.

Ps: Next month, more on the Olympics and your responses to the
September editorial.