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:

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Happy New Year 2025!  In case you missed it, there was some late year tax news to share from Finance Canada: an extension to the charitable donation contribution deadline from December 31, 2024 to February 28, 2025. In a second announcement, the automobile expense limits for 2025 were finally announced. Here’s what you need to know:

The federal government will restrict the deductibility of rental income expenses where short term rental ventures fail to meet local regional by-laws starting in 2024; based on tax law passed on June 20, 2024.  However, there are also provincial tax consequences when it comes to real estate taxation in two provinces, that should be noted:  

Tax Filing Milestones for January, February and March 2025:  Mark your calendar for these upcoming tax, investment and financial milestones and remind your clients.  Check it out - don’t forget the brand new deadline on February 28, 2025 below:

It was a controversial move that contributed to the resignation of Canada’s Finance Minister:  a GST/HST Holiday and a proposed $250 Working Canadian’s Rebate for those who filed a 2023 tax return, had a net income under $150,000, and also contributed to the CPP.  Was it a good idea? The future of the Working Canadian’s Rebate remains uncertain, as it was noticeably absent from the government’s December 16 Economic statement, and that’s okay by Knowledge Bureau Report readers:  85% answered no to going ahead with this poorly-received program.  Here’s what our readers said:

The early-bird deadline for the January 15 Virtual CE Savvy Summit is coming up next week, and you don’t want to miss this event which will deliver an Advanced Line-by-Line T1 Tax Update coveted by tax and financial pros from across Canada.  This full-day live event and accompanying online course will prepare you and your staff for tax season 2025. Receive the “Tax Bible” – Knowledge Bureau’s line-by-line desktop reference – and upskill your team’s knowledge ahead of tax season with low team member rates! Plus, check out new CE Savvy Mini Summits: these are new half-day events drill down on key tax auxiliary tax form filings, including late form releases from CRA for capital gains, real estate and proprietors.