Time’s Up: CRA’s 100 Day Mandate for Improvement
After years of frustration on the part of tax professionals and taxpayers alike, the Finance Minister ordered the Canada Revenue Agency to clean up its act in 100 days. Specifically, the improvement plan was to run from September 2 through December 11. Finance Minister and Minister of National Revenue, Francoise-Phillippe Champagne instructed CRA to fix “unacceptable wait times and service delays.” Time’s up this week and CRA has released an update on progress. What gets measured, gets done. Let’s see what CRA’s metrics show.Temporary Relief for Claiming Child Care
There is exciting news for parents who have been prohibited from claiming child care expenses due to the existing definition of “earned income”. A new Form T778 issued on January 20, 2021 clarifies that CERB and EI recipients can indeed claim child care expenses. There is more good news for disabled employees, too. Here are the details:
When are Forgivable CEBA Loans Reported?
The Canada Emergency Benefit Account (CEBA) provided two loans to businesses that suffered revenue declines due to the pandemic. They amounted to a total of $60,000, with $20,000 forgivable, if the loan is repaid December 31, 2022. However, very few expected a 2020 income inclusion. Here are the rules:
CERB Audit Tip
As CERB income reporting begins in earnest on the 2020 tax return, Canadians and their advisors are scrambling to confirm eligibility for amounts received last year and if required, to repay amounts received in error. However, a number of questions have arisen around the grey areas of eligibility. A common one surrounded eligibility for individual recipients of dividends from family businesses.
Weigh In: Is Tax Relief the Right Answer for the Times?
Business owners are struggling and despite the announcement of a new loan program yesterday, is more indebtedness the help that business owners really want at this time?
Free Event! Feb 3, Meeting of the Minds with the Society of RWM™
Join the Society of Real Wealth Managers™ on February 3rd at 11:30 EST to discuss how to interact and adapt to challenges working with your clients and other financial professionals. The focus is on how to overcome the technical, ethical, moral and legal issues that can arise when multiple advisors are involved.
DAC at a Glance
The 2020 Distinguished Advisor Conference set a high standard for virtual conferences with a unique blend of information, education, inspiration and recreation. We are working hard to bring DAC back to a live format, October 17-19 in Niagara Falls*, with a great mix of networking activities to celebrate – together! If you register by the February 15 early-bird deadline, you can save $400 on tuition, too! Take a peek at what we’ve got in store for you so far:
