ACC News Update (January 21, 2023)

IMPORTANT NEWS

This news post is complex in nature, but the Board of Annex Chess Club desires to be fully transparent and we ask that our members and other customers allow us to explain some things that have recently come up.

(This news post was modified on January 24, 2023.)

A) ACC CHESS CLASSES COME HOME!

On January 13, 2023, the Board of Annex Chess Club (ACC) notified its teaching partner, Chess Institute of Canada (CIC) that ACC was taking back full control of its in-person chess classes. For business reasons, our Board determined this change was in the best interests of the Club.

Accordingly, ACC will make the following changes effective immediately:

  1. All CIC-run ACC classes are cancelled (including beginner classes) and will immediately resume this Monday, January 23, 2023 evening at their normal times—under the control of ACC.
  2. CIC has confirmed that they will be providing students with prorated refunds. Should any students not receive their refunds on a timely basis, they should let us know by email to info@annexchessclub.com and we will follow up.
  3. We will no longer use CIC’s Amilia class registration system. Instead, our students will be allowed to pay for Monday night classes at ACC’s Front Desk. Both cash and debit/credit cards will be accepted.
  4. As announced last week at the Club, we are presently working on a new website, along with a new, integrated online membership and registration system for classes and special events. The go-live date for these new systems is expected to be February 28, 2023.
  5. All of our Monday night, in-person classes (beginner, intermediate and advanced classes for both kids and adults) will continue to be taught by our existing instructors as independent contractors of ACC (and not as employees of CIC). These instructors are excellent.
  6. We will adjust our pricing as we deem appropriate, in order for the Club to remain competitive and affordable for our members and other students, and their families.
  7. Starting March 1, 2023, we will be offering online chess classes in addition to in-person classes. This will be through a mix of our current instructors plus one or two new ones who decide to join our team. These online classes will be offered on other days, e.g. Tuesday/Thursday evenings.

We thank CIC for its past service as our teaching partner.

B) ACC REGISTERS FOR HST

ACC is a non-profit organization run for the benefit of its registered members and other customers.

As a result of growth in membership and special events revenues, effective January 1, 2023, our Club no longer qualifies as a “non-profit small supplier” for Harmonized Sales Tax (HST) purposes. Further, all of our Club’s activities (memberships, drop-in fees for tournaments and casual chess, special events and adult classes) are classified as “taxable supplies” for the purpose of collecting and remitting HST to the government. The only exception is kids’ classes (under the age of 14) which are HST-exempt. We confirmed these details last week, in a meeting with the CRA’s HST Rulings Division.

Accordingly, ACC is now registered for HST. Our HST-number is 73983 1345 RT0001.

Recently, our Club announced price increases effective March 1, 2023. These prices were to adjust membership and drop-in fees for the effects of inflation. In our recollection, this is the first-time since the Club’s inception in 2010 that an inflationary price increase has been implemented. Our recent requirement to register for HST has added some further complication to our pricing adjustments since we must now build in the effects of the HST for most of our services as already explained above.

For purposes of clarity, we plan to generally use tax-included pricing when communicating our pricing to our members and other customers. This will allow for easier comparisons with rates charged by other Clubs, not all of which are registered for HST. We believe that our new pricing effective March 1, 2023 will need to be modified from the prices announced on January 17, 2023, to account for the effects of HST.

We intend to explain our final revised Club pricing to our members (which is effective March 1, 2023) in our upcoming AGM scheduled for Monday, February 13, 2023 at 6:30 PM.

George Supol, CPA CA, CITP (Treasurer and Club Manager)

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