Archive for the ‘Tax Alerts’ Category

Getting relief from the high cost of driving

Friday, May 24th, 2019

As every Canadian driver knows, gas prices seem to rise every spring, seemingly in lockstep with the warmer weather. This year, that annual trend has been given an extra push by the implementation of federal and provincial carbon taxes. As of the end of April, gas prices ranged from $1.19 to $1.56 per litre, depending on the province, and most forecasts call for those prices to increase over the summer.


Posted: Friday, May 24th, 2019 | Categories: Tax Alerts.

Fixing a mistake in your (already filed) tax return

Friday, May 10th, 2019

For the majority of Canadians, the due date for filing of an individual tax return for the 2018 tax year was Tuesday April 30, 2019. (Self-employed Canadians and their spouses have until Monday June 17, 2019 to get their return filed.) 


Posted: Friday, May 10th, 2019 | Categories: Tax Alerts.

What to do when you can’t pay your tax bill

Thursday, April 25th, 2019

Most taxpayers sit down to do their annual tax return, or wait to hear from their tax return preparer, with some degree of trepidation. In most cases taxpayers don’t know, until their return is completed, what the “bottom line” will be, and it’s usually a case of hoping for the best and fearing the worst.


Posted: Thursday, April 25th, 2019 | Categories: Tax Alerts.

It’s tax filing – and tax scam – season (March 2019)

Monday, March 18th, 2019

For many years now, there has been a persistent tax scam operating in Canada in which Canadians are contacted, usually by phone, by someone who falsely identifies himself or herself as being a representative of the Canada Revenue Agency (CRA). 


Posted: Monday, March 18th, 2019 | Categories: Tax Alerts.

When and how to file this year’s tax return

Monday, March 11th, 2019

Each year, the Canada Revenue Agency (CRA) publishes a statistical summary of the tax filing patterns of Canadians during the previous filing season. Those statistics for the 2018 show that the vast majority of Canadian individual income tax returns — nearly 87%, or almost 26 million returns — were filed online, using one or the other of the CRA’s web-based filing methods. 


Posted: Monday, March 11th, 2019 | Categories: Tax Alerts.

What’s new on this year’s tax return?

Monday, March 4th, 2019

While Canadian taxpayers must prepare and file the same form – the T1 Income Tax and Benefit Return – every spring, that return form is never the same from one year to the next. The one constant in tax is change, and every year taxpayers sit down to face a different tax return form than they dealt with the previous year.


Posted: Monday, March 4th, 2019 | Categories: Tax Alerts.

Responding to a tax instalment reminder from the CRA

Monday, February 25th, 2019

Sometime during the month of February, millions of Canadians will receive mail from the Canada Revenue Agency (CRA). That mail, a “Tax Instalment Reminder”, will set out the amount of instalment payments of income tax to be paid by the recipient taxpayer by March 15 and June 17 of this year.


Posted: Monday, February 25th, 2019 | Categories: Tax Alerts.

RRSPs and TFSAs — making the annual contribution

Monday, February 11th, 2019

For most taxpayers, the annual deadline for making an RRSP contribution comes at a very inconvenient time. At the end of February, many Canadians are still trying to pay off the bills from holiday spending, the first income tax instalment payment is due two weeks later on March 15 and the need to pay any tax balance for the year just ended comes just 6 weeks after that, on April 30. And, while the best advice on how to avoid such a cash flow crunch is to make RRSP contributions on a regular basis throughout the year, that’s more of a goal than a reality for the majority of Canadians.


Posted: Monday, February 11th, 2019 | Categories: Tax Alerts.

Apprenticeship training tax credit eliminated

Sunday, January 20th, 2019

The province of Ontario provided employers who hired and trained eligible apprentices in designated construction, industrial and motive power, and certain service trades with a refundable tax credit, the Apprenticeship Training Tax Credit (ATTC). The maximum such credit was $5,000 per qualified apprentice per year for the first 36 months of an apprenticeship program.


Posted: Sunday, January 20th, 2019 | Categories: Tax Alerts.

Tax deadlines and limits for the 2019 tax year

Friday, January 11th, 2019

Each new tax year brings with it a listing of tax payment and filing deadlines, as well as some changes with respect to tax planning strategies. Some of the more significant dates and changes for individual taxpayers for 2019 are listed below.


Posted: Friday, January 11th, 2019 | Categories: Tax Alerts.

The employee tax perks of working from home

Friday, October 26th, 2018

The daily commute to and from work is, generally, everybody’s least favourite part of the work day. In recent years that commute has gotten longer and longer as many Canadians, especially those working in large urban centers, have moved further and further away from their workplaces in search of affordable family housing.


Posted: Friday, October 26th, 2018 | Categories: Tax Alerts.

The tax scam that won’t go away

Friday, October 12th, 2018

Tax scams have been around, probably, for about as long as Canada has had a tax system. They also have a tendency to proliferate at certain times of the year — often during tax return filing and assessment season, when it wouldn’t necessarily strike taxpayers as unusual to receive a communication purporting to be from the Canada Revenue Agency (CRA), with a message regarding that person’s taxes — whether in relation to a tax refund or an amount of tax owing.


Posted: Friday, October 12th, 2018 | Categories: Tax Alerts.

Charities and political activities – new developments

Saturday, September 15th, 2018

The administrative policy of the Canada Revenue Agency (CRA) with respect to charities has been that no more than 10% of a registered charity’s resources can be allocated to non-partisan political activity. Where the CRA views a charity as having exceeded that threshold it may impose sanctions, up to and including revocation of a charity’s charitable registration status.


Posted: Saturday, September 15th, 2018 | Categories: Businesses, Tax Alerts.

An end to restrictions on political activities of charities?

Friday, August 31st, 2018

Achieving charitable registration status is a significant step, and a significant benefit, to any organization. The organization itself becomes exempt from income tax and, in addition, is able to issue tax receipts for donations made to it, which allow donors to claim a federal and provincial tax credit based on the amount of such donations. The ability to issue such tax receipts gives a charitable organization a measurable advantage when it comes to fundraising.


Posted: Friday, August 31st, 2018 | Categories: Tax Alerts.

Changes to Canada Child Benefit payments for 2018-19

Friday, August 17th, 2018

Millions of Canadians receive payments each month from the federal government and for younger Canadians, especially families with children, such payments will often include the monthly Canada Child Benefit (CCB).


Posted: Friday, August 17th, 2018 | Categories: Tax Alerts.

When the taxman has a few questions …

Friday, August 3rd, 2018

Between February and July 2018, the Canada Revenue Agency (CRA) received and processed just over 28 million individual income tax returns filed for the 2017 tax year. The CRA’s self-imposed processing turnaround goal for each of those returns is to complete its assessment and to issue a Notice of Assessment within two to six weeks, depending on the filing method.


Posted: Friday, August 3rd, 2018 | Categories: Tax Alerts.

When you are turning 71 – the big RRSP decision

Thursday, June 28th, 2018

For several generations, reaching one’s 65th birthday marked the transition from working life to full retirement, and, usually, receipt of a monthly employee pension, along with government-sponsored retirement benefits. That is no longer the reality. The age at which Canadians retire can now span a decade or more, and retirement is more likely to be a gradual transition than a single event.


Posted: Thursday, June 28th, 2018 | Categories: Tax Alerts.

Deciphering your Notice of Assessment

Friday, June 22nd, 2018

By the middle of May 2018, the Canada Revenue Agency (CRA) had processed just over 26 million individual income tax returns filed for the 2017 tax year. 


Posted: Friday, June 22nd, 2018 | Categories: Tax Alerts.

ON – Province to reduce small business tax rate in 2018

Friday, June 8th, 2018

In the 2017 Economic and Fiscal Review issued on November 14, Ontario’s Minister of Finance announced that the provincial small business tax rate would be reduced, effective as of January 1, 2018, from 4.5% to 3.5%. That rate is paid by Ontario incorporated small businesses on their first $500,000 of active business income.


Posted: Friday, June 8th, 2018 | Categories: Tax Alerts.

Fixing a mistake in your tax return

Wednesday, May 30th, 2018

By the end of April 2018, more than 20 million individual income tax returns for the 2017 tax year will have been filed with the Canada Revenue Agency (CRA). And, inevitably, some of those returns will contain errors or omissions that must be corrected – last year the CRA received about 2 million requests for adjustment(s) to an already-filed return. (more…)

Posted: Wednesday, May 30th, 2018 | Categories: Tax Alerts.

Claiming a deduction for summer child care costs

Tuesday, May 15th, 2018

The arrival of warmer weather signals both the start of spring and the approaching end of the school year. For many families, it also means the need to begin researching the availability of suitable child care or summer daytime or overnight camp arrangements for the summer months. 


Posted: Tuesday, May 15th, 2018 | Categories: Tax Alerts.

Making a payment arrangement with the CRA

Monday, April 30th, 2018

Virtually no one looks forward to dealing with the need to file a tax return each spring, and while some of that reluctance is undoubtedly due to the complexity of our tax system, there’s another factor at work. (more…)

Posted: Monday, April 30th, 2018 | Categories: Tax Alerts.

Reporting the sale of your principal residence

Friday, April 20th, 2018

The reach of Canada’s system is broad – residents of Canada are taxed on their world-wide income, and the income or capital amounts that escape the Canadian tax net are few and far between. (more…)

Posted: Friday, April 20th, 2018 | Categories: Tax Alerts.

Changes coming to the Voluntary Disclosure Program

Wednesday, February 21st, 2018

Although it’s doubtful that anyone does so with any great degree of enthusiasm, each spring millions of Canadians sit down to complete their annual tax return for the previous calendar year or, more often, they pay someone else to do it for them. Although the rate of compliance among Canadian taxpayers is very high — for the last filing season, just under 30 million individual income tax returns were filed with the Canada Revenue Agency (CRA) — there are, inevitably, those who do not.


Posted: Wednesday, February 21st, 2018 | Categories: Businesses, Individuals, Tax Alerts.

Pension income splitting — getting something for nothing (February 2018)

Wednesday, February 14th, 2018

Any taxpayer hearing of a tax planning opportunity that offered the possibility of saving hundreds or even thousands of dollars in tax while at the same time increasing his or her eligibility for government benefits, while requiring no advance planning, no expenditure of funds, and almost no expenditure of time could be forgiven for thinking that what was being proposed was an illegal tax scam. 


Posted: Wednesday, February 14th, 2018 | Categories: Tax Alerts.

RRSPs and TFSAs — making the annual choice

Wednesday, February 7th, 2018

If there is one invariable “rule” of financial and retirement planning of which most Canadians are aware, it is the unquestioned wisdom of making regular contributions to a registered retirement savings plan (RRSP). And it is true that for several decades the RRSP was only tax-sheltered savings and investment vehicle available to most individual Canadians.


Posted: Wednesday, February 7th, 2018 | Categories: Tax Alerts.

Tax deadlines and limits for the 2018 tax year

Friday, January 12th, 2018

Each new tax year brings with it a listing of tax payment and filing deadlines, as well as some changes with respect to tax planning strategies. Some of the more significant dates and changes for individual taxpayers for 2018 are listed below. (more…)

Posted: Friday, January 12th, 2018 | Categories: Individuals, Tax Alerts.

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