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:

Canadians donated close to $11 billion to charity in 2010 according to Statistics Canada. Becoming more philanthropic and giving more to causes that are important to them, like the current refugee crisis or environmental issues, should be top of mind in year-end tax planning conversations, given the significant tax rewards associated with giving.

Mark your calendar for the last week of October. Knowledge Bureau’s Fall Distinguished Advisor Workshop (DAW) promises some exciting and educational programming on issues your business clients commonly face. 

C.J. McCarty, was a specified shareholder/employee of the company, C.J. McCarty, Inc, (CJ,Inc.); he had only one client over a three month period of time, MEG Energy Corporation (MEG) and he received a fixed hourly rate for his services as the construction manager of a major project. 

The Canada Revenue Agency (CRA) recently extradited a tax preparer back to Canada from Italy and put her into custody to serve a 10-year sentence for tax fraud after she claimed $58 million in false carrying charges and charitable donations on over 4,000 returns.

Many of us are blessed to have older family members enriching our lives, but they often require a significant amount of care, and their caregivers can, in turn, require more help. At a time when politicians and potential leaders debate subsidized child care, are we missing an opportunity to discuss whether the tax system is doing enough to recognize the real and increasing costs of elder care?

Especially for experienced tax and financial advisors, unique planning opportunities with Canada’s top experts will provide 10 CE/CPD Credits and access to 2015 tax calculators.