Changes to Paper Filing Disempowering

Last tax season, only 7% of all Canadian tax filers filed on paper. The CRA is pushing for zero. It continues to steer the holdouts to digitized filing by adding lots of obstacles. Most recently, it is removing almost all the schedules from the tax return package it mails. This seems unfair to people who paper file because they can’t afford a computer and internet, distrust the security of online filing and those who are neither tax or computer literate. Here’s what they are up against:

Navigating our tax system can be challenging for most; yet it can have a significant impact on a newcomer’s financial life. The good news is Canada’s tax regime it is very generous, especially for families with low incomes. At year end, there is an excellent opportunity for advisors to gain – and retain - new clients before the tax season rush, with information sessions designed to empower new Canadians. Are you working with newcomers to Canada? Here is a brief case study and six important tax concepts to discuss:

Knowledge Bureau’s September poll asked your opinion about the potential for a 2% tax hike on incomes over the top tax bracket to help pay down the post-pandemic debt.  The vote was decisive with 43% for the hike, and 57% against, and the comments on such a reform of the tax system were interesting and definitive. Here’s what advisors across Canada advocated for:

New business owners often have difficulty managing their shareholder loan account, mistaking it for a tax free way to access funds. For these reasons, it’s a good idea to advisors to review what this account is and how it functions. Here’s a primer from Knowledge Bureau’s MFA™-Corporate Tax Services Specialist Program:

Tax year 2021 may represent the year millions of Canadians made a significant career shift and with that comes a new tax filing profile. Astute tax advisors will make it their business to consult with clients early, especially if new employment and self-employment trends hold true in their communities.

Are you working with small business owners who have received pandemic wage or rent supports?  Knowledge Bureau’s new Audit Defence: Managing Tax Risk for Small Business Owners is an online certificate course that helps advisors position small business owners for success for potential tax audits in 2021- 2023 with a concise pathway to navigate the complex rules and comprehensive documentation they will need to satisfy queries from clients and manage risk with the CRA.

At a time when many have lost their health, suffered the loss of their loved ones, their livelihoods and/or the exhaustion that threatens their resolve, we give thanks for the spirit of human resilience and kindness that emerges in every crisis.  It is important to remember that no matter how dark the clouds, we only need to get through the challenges of today to bring forward the bright promise of an incredibly vibrant tomorrow.