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:

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At 8 pages, the 2019 T1 return is the longest tax form in history.  It could also be the most complex, says Evelyn Jacks, President of Knowledge Bureau. With tax season beginning, professionals who are not yet familiar need to learn about the changes to the forms, line numbers and the detailed legislation behind them. 

It all takes much too long: that’s the message the Taxpayer’s Ombudsman had for the CRA with the release of report that culminated in 15 recommendations focused on cutting incredibly long wait times for tax assessments and adjustments. What’s considered too long? Taxpayers, professionals, CRA and the Ombudsman appear to have very divergent views.

The CRA started E-filing transmission services on Monday, February 24 which means tax refunds should be flowing soon for millions of tax filers. This tax season features a new 8-page tax return and a complete change to the line numbering system throughout the return. Plus, coming in March there’s the introduction of Charlie to Chatbot who will answer general tax filing questions. But are you clear about when you must file? Many Canadians are not.

Statistics released on February 14, 2020 by the Canadian Real Estate Association (CREA) show that national home sales declined by 2.9% between December 2019 and January 2020, but prices are poised to rise later in the year.  This could therefore be a good time to buy that first home, especially with the help of the enhanced RRSP Home Buyers’ Plan.  For these reasons, some of your clients may still be interested in topping up their plans before March 2 RRSP contribution deadline.

Changes announced by Bank of Canada last week will make getting a mortgage easier for new home buyers in Canada as of April 6, 2020. It’s important for tax and financial advisors to understand the new guidelines in order to assist Canadians with sound debt management strategies.