Fuel Excise Tax on Hold But Inflation is Not

The U.S.-Israel war on Iran has thrown global oil prices into turmoil and there is plenty of fallout for consumers. Travelling to Europe this summer? That’s in jeopardy, as jet fuel may run out.  Looking for relief at the pumps instead? The recently announced suspended federal excise tax on gasoline, unleaded aviation gasoline, diesel fuel and aviation fuel here in Canada will soften the blow, but only temporarily: it will be zero from April 20 to September 7, 2026. Here’s what you need to know:

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The tax filing season is just around the corner and now is the time to shake out the cobwebs, learn about the “dark horses” of tax theory behind the lines on the new 2022 T1 return and sharpen the skills of your new and returning staff in your tax preparation office.  Register by January 15 for the Advanced T1 Tax Update and check out our new rates for multiple enrolments: 2, 3 or 4 and more from your office.

Most limits on claiming automobile expenses by employees and proprietors will increase starting on January 1. However, you may be surprised to see which limit has not changed.

There might be gold in prior filed tax returns and cash-strapped Canadians may not know about this.  You too can tap into CRA’s Taxpayer Relief Provisions when there are factors beyond the taxpayer’s control that resulted in penalties or interest charges or in cases where there were errors or omissions.  In fact, CRA can issue refunds for up to 10 years and that means you should review your 2012 tax returns prior to December 31.  What are common missed items?

In times of high inflation and a down-trending economy (like today) Canadians pull out all the punches. They scrimp, they save and they cut corners where they can. Many also started to rely more heavily on the Canada Revenue Agency (CRA) for benefits and importantly their public advocate with the CRA: The Office of the Taxpayers' Ombudsperson (OTO), who fielded a record number of urgent requests this year and prompted millions in uncashed cheques to be cashed.  OTO has also created an important new opportunity for tax advisors.   

This is our special wish for you throughout the holidays!  Thank you sincerely for your readership and support. . .we look forward to sharing knowledge with you in the New Year!