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 baby boomers age, technology makes it possible for people and businesses to operate globally, and economic changes make it appealing for people and businesses to purchase investment property globally.  As well as the increase in the sharing of financial information between countries, cross border taxation issues become key for cross border employment, entrepreneurship or asset ownership, as does the issue of residency and U.S. citizenship.

New Course Alert: The Digital Practitioner Course (Your Guide to Remote Work) When the pandemic hit, there was a natural surge in employees working from home. In Canada, the percentage of *core-age employees working from home was about 43% in May 2020. As the pandemic subsided, in December 2021, 26% of core-age employees in Canada worked from home, compared with 13% in the United States. Majority of people who are working remotely—want to keep it that way.

Disabled people represent the world’s largest minority.  There are 1.1 Billion people in this category around the world and the reality is that this is a minority group everyone has the potential to join – any time.  Planning for incapacity is therefore a prime-of-life topic that advisors must raise proactively in order to maximize the opportunities for preparedness and importantly, the assistance that may be available through the tax system.

The pandemic has underscored the important role of caregiving in Canadian society.  But even before the pandemic 25% of Canadians aged 15 and older – close to 8 Million people- were involved in caregiving to a family member or friends with a long-term disability or age-related decline.  These caregivers have key unmet needs

In a climate of rising interest rates, Home Equity Lines of Credit (HELCO) and other joint borrowing opportunities can present a new risk for two generations in the family.  Joint borrowers need to be aware of the dangers ahead and the tax consequences; all reasons why that’s an important part of a year-end tax planning conversation.

The April 2022 federal budget, introduced a Labour Mobility Deduction for skilled tradespeople and apprentices who need to temporarily relocate for work. It’s important to advise eligible taxpayers about this, so they keep receipts to back up the claims retroactively to January 1, 2022.