Wildfires: Apply for Taxpayer Relief Provisions

It may not be the first concern, but Canadians affected by wildfires may worry at some point about the tax consequences of lost records or missed filing deadlines – the next one on June 16 for those filing T1 returns with proprietorship income. Fortunately, the CRA offers Taxpayer Relief Provisions when there are circumstances beyond a taxpayer’s control, including natural disasters, serious illness or death in the family, or errors made by the CRA, which may trigger penalties and interest due to late or incomplete tax filings. Here’s what you need to know.

As financial advisors, we are privy to the evolving financial landscapes of our clients' lives. In recent months, a concerning trend has emerged in Canada: a sharp rise in insolvency rates.  This alarming development is creating a ripple effect that is impacting an unexpected demographic—our older, retired clients. Increasingly, we are seeing these individuals draw upon their retirement savings to financially support their adult children who are facing bankruptcy.

Saving up to make tuition fee payments is always an obsession for post-secondary students and their supporting individuals, but tuition fee tax credits, together with the Canada Training Credit, available to those aged 26 to 65 as at the end of December this year, can bring significant tax savings to help make it all more affordable.  Here are some tax tips and true-to-life examples for minimizing your back-to-school spend:

Close to 18 million tax returns are filed by professional EFILE Services in tax season 2023 – 59.5% of all tax returns filed in Canada, according to CRA’s income tax statistics. This speaks to the tremendous opportunities available in mentoring new tax preparers throughout the summer and fall to prepare for tax season 2024.  But in our June poll, 60% of respondents told us it was difficult to attract and engage new entrants. 

This month, Knowledge Bureau Report celebrates the achievements of Harvey Agustin, an outstanding professional from Calgary, Alberta who has recently designated as and RWM™ - Real Wealth Manager and an MFA-P™ - Philanthropic Services Specialist.  He tells us what these achievements have meant to him. 

Good news!  It’s officially the farthest month between tax seasons, but time will march quickly on the journey towards 2024, when highly trained personal tax specialists will again be in high demand.  That’s why July is such a good month to commit to Knowledge Bureau’s Tax Training School, featuring the DMA™-Personal Tax Services Specialist program and its six professional courses, updated for 2023 tax filing requirements, and available for continuous intake now. 

As Canadians plan to take a break from tax for summer holidays, the key eroders of wealth – taxes, inflation and the costs of building wealth – are about to take a bigger bite out of Canadian’s balance sheets. There are three key reasons for this and it’s important to set up some time with tax and financial advisors before hitting the beach, to plan to stay ahead of tax issues and comply with two more filing deadlines as well.