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.

CNIL (generally pronounced senile) is the acronym for Cumulative Net Investment Loss.  Tracking CNIL started after December 31, 1987.  Most people don’t know why CNIL is so important and why tax software tracks it so carefully on a year-to-year basis.  But if you’re a small business owner counting on using your full Capital Gains Deduction, here’s what you need to know:

Investors need to quickly sharpen their tax and financial skills to meet more challenging times ahead, and a good way to start is to find the right advisor says Knowledge Bureau Founder and President Evelyn Jacks, best-selling tax financial author and award-winning educator.  That’s someone who is prepared to work with you holistically and with a multi-stakeholder approach to building sustainable family wealth – after taxes, inflation and fees. 

The World Economic Forum, which wraps up this week, signaled more gloomy economic news for 2023, more interest rate hikes to come, and a mild recession.  For worried investors, retirees and employees, particularly in the tech industry, shoring up new learning opportunities is a good idea.  Knowledge Bureau can help with a new series of Specialized Credentials and micro-courses that begins with a solid understanding of a key wealth eroder: TAX.

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Cryptocurrency can't stay out of the headlines - just last week (on their first joint statement on crypto) the Federal Reserve, Federal Deposit Insurance Corp (FDIC) and the Office of the Comptroller of the Currency (OCC) said they had concerns with the safety and soundness of bank business models that are highly concentrated in crypto. No government wants any 2022 problems sneaking up - a truly notorious year for cryptocurrency with the collapse of FTX.

Both the CPP and EI contributions – which are mandatory – have risen. This will reduce take-home pay for employees. However, for those who are self-employed and must pay both the employer’s and employee’s portion of the CPP, things are about to get much more expensive and that could start to crowd out critical TFSA and RRSP investments for their futures.