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:Online Mail for Business - A New Development!
On November 14, 2024, the Canada Revenue Agency (CRA) announced that as of the spring of 2025, it would transition to online mail as the default method for delivering most business correspondence via My Business Account. Traditional mail delivery would be discontinued. This announcement was the only communication provided to business owners; no individual or personalized notifications were issued. This poses challenges to business owners and the financial professionals they work with.
Why Provincial Debt in Canada Matters
Provincial debt is rising fast — and that should concern every Canadian taxpayer and the professionals who serve them. With every dollar of debt comes an interest payment, but no added value in services. If governments were people, many would be seeking help from a credit counsellor. So why does this matter to your clients — and to you as a tax or financial professional? Because government debt affects interest rates, taxation, and economic growth, all of which impact tax and financial planning for individuals and businesses.
Tax Evasion & The Consequences
Canadians pride themselves on being an honest people. We pay our taxes. That is, almost all of us pay our taxes. But there is a small percentage of individuals and businesses who are guilty of tax evasion. While most of us pay up, there will always be a percentage looking to cheat the government. Tax and financial advisory professionals are highly trained to advise against this and explain the consequences.
The Future is Specialized: Stand Out in a Competitive Economy
In today’s fast-changing economy, professionals in the tax, bookkeeping, and financial services sectors are facing increasing pressure to diversify their knowledge, demonstrate credibility, and add tangible value for clients navigating uncertainty. That’s where specialized credentials—particularly the Distinguished Master Advisor (DMA™) Designation offered through Knowledge Bureau—can make a meaningful difference.
Tricky Business Expenses: Don’t Fall into These Tax Traps
The June 16 tax filing deadline for self-employed proprietors is just around the corner. Be sure to do a thorough review of business expenses allowable – it’s essential to be accurate for tax purposes and keep all receipts and documentation for audit purposes. Misinterpretation or misclassification of expenses can result in either an understatement or overstatement—both of which can impact income reporting, Canada Pension Plan (CPP) contributions, and income tax obligations.
Knowledge Bureau Poll: Tax Cut Doesn’t Cut It!
The Notice of Ways and Means Motion was released on May 27, but the 1% tax rate cut going into effect on July 1, didn’t cut it with Knowledge Bureau Report readers who responded to our May Poll. A decisive 90% of respondents said “No” when asked: does the new government’s promise to cut the lowest personal income tax rate by 1% to 14%, (14.5% in 2025) go far enough to help Canadians impacted by high costs? Here were their comments and suggested alternatives based on real life experiences with the after-tax income their struggling clients are left with:
