Bill C-31: Royal Asset and New CRA Powers Could Come Soon

Changes are coming to the Income Tax Act and both you and your clients will all be affected with new tax risks including longer tax audits. Bill C-31, which passed second reading in the House of Commons on June 3 and is now at committee stage, contains elements of previous Federal Budgets that will expand the CRA’s compliance and enforcement powers. Here’s what you need to know and pass along to your clients:

Did you know that beginning with the 2015 tax year, the minimum required taxable withdrawal from a Registered Retirement Income Fund (RRIF) was reduced? Did you claim the amount correctly on your 2015 tax return as a result?

Taxes are going up on the East Coast, even for low earners, while small businesses pay more in a retroactive tax hike.  Meanwhile small business owners get a tax break in Alberta, despite the red ink there.  In short, Alberta and Newfoundland and Labrador took two very different approaches to dealing with loss of tax revenues from oil and gas last week.

CRA has revised Form TD1 2016 Personal Tax Credits Return so that those who live in prescribed and intermediate northern zones can reduce their tax withholdings accordingly and get more of their hard earned money back throughout the year.

Be sure to visit with a Tax Services Specialist to properly set up the accounts for the income and expenses you’ll be claiming in your small business.

It’s important to be a law-abiding tax filer, but did you know that some sources of cash flow and income are not reportable on the tax return? Consider the following checklist and be sure to avoid paying extra tax by including them in error.

In the past, retirement income planning was largely focused on how much pension income was needed to replace employment income, for a taxpayer and his/her spouse to live comfortably until death. That has now changed, significantly.