New Consultations: Modernizing Tax Rules for Charities

As the last remnants of a scrumptious Thanksgiving weekend subside, it is appropriate to take a look at the health and issues surrounding the charitable sector in Canada.  Serendipitously, the federal government is seeking your views on how the tax rules for registered charities and the Canada Revenue Agency’s (CRA) administration of these rules could be modernized.  A new consultation was launched on October 8 and here’s what the government wants to know, by December 3, 2026:

The April 19, 2021 Federal Budget has received Royal Assent, and one important change will bring much needed help to a million more low income Canadians: the expansion to Canada’s Workers Benefit (CWB).  The expanded annual benefit, which provides up to $1,400 for single workers without children and $2,400 per family, will now be accessible to 3.2 million people. Here are the details.

Why is tax efficiency so important in planning for future financial peace of mind?  Because it increases the present value of income; which has the potential of earning more income and value over the longer savings horizon. Tax and investment advisors can provide invaluable assistance especially to those clients under age 45, who lag behind in their RRSP contributions. 

On June 29, an important private member’s bill received Royal Assent. It addresses the thorny issue of intergenerational transfers of family farms and fisheries. These changes will provide more surety for those in the farming and fishing industries to enable capital gains treatment on intergenerational transfers; tax treatment aligned with sales to unrelated parties.

In today’s hot but volatile financial markets, investors are looking for new places to invest for safety, while taking advantage of change.  A new type of debt instrument, Limited Recourse Capital Notes, may fit the bill for some fixed income investors, and tax and financial advisors will want to come up to speed to better understand the structure.   

Virtual DAC Acuity 2021, October 17-19 will feature the thought leadership of 8 senior executives, 2 best-selling authors, leading scholars and top wealth advisors. It’s an online conference experience that tax and financial professionals won’t want to miss. Share the knowledge: enrol yourself and bring your team along at a reduced tuition fee, until September 30.

Sharon Timson is a DFA-Tax Services Specialist™ Designate who has been able to increase the value she offers to her clients, while diving deeper into the important financial conversations. See what she has to say about her experience in earning these important credentials.