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March 21, 2012      


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"One important key to success is self-confidence. An important key to self-confidence is preparation." Arthur Ashe


Breaking News
► Interest rates: Time for policy action?
► CRA reviews “aggressive” TFSA schemes
► Everything British Columbians wanted to know about eliminating HST
► Evelyn Jacks: Investing Tips for Young Adults
► Announcing the Federal Budget edition of Knowledge Bureau Report
 
Your News
Poll Question: Should the government raise the age at which you begin to receive OAS benefits?
DISTINGUISHED PRACTICES: Tips for Real Wealth Managers™: Charitable donations
You Asked Us: Taxing withdrawals from your RRSP
Tax Tips: Reduce taxes on severance with an RRSP contribution
 
Our News
► New Certificate Course: Tax Strategies for Financial Advisors now available
Featured Course: Tax Strategies for Financial Advisors
► Special Offer for Knowledge Bureau Report (KBR) readers only
Featured Book: Master Your Real Wealth
► Special Offer for Knowledge Bureau Report (KBR) readers only
Mark Your Calendar: Knowledge Bureau Events
Featured Event: DAC 2012 - Navigation: Charting a New Financial Course
 
Breaking News
Interest rates: Time for policy action?

Interest rates are putting policymakers and politicians between a rock and a hard place. When the Bank of Canada recently left the overnight rate at 1%, it confirmed the likelihood the stable, low-interest-rate environment would continue into 2013. But those same low interest rates have fostered Canada's overvalued real estate market and record levels of household debt.

... more
 
CRA reviews “aggressive” TFSA schemes

Canada Revenue Agency (CRA) is putting some high-flying Tax-Free Savings Accounts (TFSAs) and their "unusual” transactions under its microscope. It seems the ability of some TFSA holders to turn a $5,000 annual contribution into, for example, $300,000 in one year has attracted Ottawa's attention. The CRA recently sent questionnaires to selected TFSA holders and is threatening a penalty of close to 100% of the value of the TFSA for any missteps.

... more
 
Everything British Columbians wanted to know about eliminating HST

At tax time, Canada Revenue Agency (CRA) releases a steady stream of bulletin and notices to help taxpayers. Recently, the publication T4060 CRA Collections Policies — Individual Income Tax (T1) and Notice 270 concering elimination of the HST in British Columbia in 2013 appeared on the CRA website.

... more
 
Evelyn Jacks: Investing Tips for Young Adults

Once all the members of your family — including minors and young adults — have filed their tax returns, you can turn your attention to teaching the next generation the long-term benefits of investing their returning social benefits and refunds wisely.
... more
 
Announcing the Federal Budget edition of Knowledge Bureau Report

On Thursday, March 29, after the federal Minister of Finance Jim Flaherty presents his 2012-2013 federal budget in the House of Commons, Knowledge Bureau Report will issue a Special Report, analyzing and assessing the impact of Budget 2012 on your finances. Tax expert and Knowledge Bureau President Evelyn Jacks will weigh in on the tax consequences, while other Knowledge Bureau experts will comment on the economic and financial and retirement planning implications.

... more
 
Your News
Knowledge Bureau Poll
 

Current question

Should the government raise the age at which you begin to receive OAS benefits?

      


Current poll results: Yes: 24%  No: 76%   Read what other readers have to say

 DISTINGUISHED PRACTICES: Tips for Real Wealth Managers™:  Charitable donations

The tax system provides financial incentives to encourage taxpayers to contribute to charitable, philanthropic and public service organizations. Because the tax advantages that derive from charitable donations can be enormous, this is one area you should consider when doing your tax planning.
... more
 You Asked Us: Taxing withdrawals from your RRSP
 
 

Suppose on Monday you withdrew $5,000 from your RRSP to meet an unexpected expense. At that time, your bank withheld the required 10% for taxes. But suppose you have another emergency and on Wednesday, you withdraw another $5,000. Things go from bad to worse and, on Thursday, you take out another $5,000, taking your total withdrawals to $15,000.

... more
 Tax Tips: Reduce taxes on severance with an RRSP contribution
 
 


As a terminated employee, a severance package can provide you with a soft landing. But you may find yourself keeping less than anticipated because your "Retiring Allowance” is fully taxable and that lump-sum payment landed you in a top tax bracket. That makes it important to see your tax advisor before accepting your severance.

The best way to shelter your severance is by making an RRSP contribution, assuming you have the contribution room. If some of your employment service occurred before 1996, you will be able to "roll over” part of your Retiring Allowance into your RRSP or Registered Pension Plan (RPP) without using up existing RRSP contribution room.

In disputed cases, legal fees paid to fight a wrongful dismissal may be deductible. In some instances, lump-sum averaging may also be possible.
 

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Our News
New Certificate Course: Tax Strategies for Financial Advisors now available

As part of the Investment & Retirement Services Specialist program, Knowledge Bureau introduces a new self-study course, Tax Strategies for Financial Advisors, leading to the Knowledge Bureau's Master Financial Advisor Designation.

The course — written by Knowledge Bureau President Evelyn Jacks and tax specialist Walter Harder — aims to help advisors develop processes for strategic and tax-efficient investment income planning. "The objective,” says Jacks, "is to earn investment income tax-efficiently, split it with family members and avoid the eroding effect of taxes on capital at transition times.”

... more
Featured Course: Tax Strategies for Financial Advisors
Special Offer for Knowledge Bureau Report (KBR) readers only

Tax, financial planning and wealth management competencies are required to fund income and capital accumulation goals derived from investments. The advisor must use a strategy and a process geared to preserving, growing and transitioning wealth tax efficiently to the next generation, throughout the lifecycles of individuals within a family.

Tax is a trigger for affluent families. They seek credible, trusted, and expert solutions to their investment strategies and expect to work with professionals who can increase returns with tax efficiency.

             Enrol now and SAVE $200 until March 27, 2012

... more
Featured Book: Master Your Real Wealth
Special Offer for Knowledge Bureau Report (KBR) readers only

MASTER Your Real Wealth: Start Today!
How to Live Your Life in Financial Security

Do you fear you will outlive your savings? Do you want better results from your investments? Then now's the time to Master Your Real Wealth!

SAVE $10 if you buy before March 27, 2012!
... more
Mark Your Calendar: Knowledge Bureau Events

   Knowledge Bureau Calendar of Events
 
May 15
May 14-17
Client Appreciation Events: 4 cities
 
... more
Featured Event: DAC 2012 - Navigation: Charting a New Financial Course

Charting a New Course
 
Learn the impacts of tax and economic change at DAC
 
Early Bird Enrolment: ends June 30
... more

Registration Deadlines
Register Today for
the Spring Session!
Payments as low as $195/month
Register Before June 30 for Early Bird Pricing
November 11 to 14
Naples, Florida
Call to register:
 1-866-953-4769 to inquire
 

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Published by
The Knowledge Bureau
Evelyn Jacks, Managing Editor
Knowledge Bureau Faculty