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:

A new study on the savings habits of Canadians in their Tax Free Savings Account (TFSA) conducted by the Bank of Montreal, sheds light on many missed opportunities. But it’s not too late for investors to catch up and thrive with this completely tax-free opportunity.

There are some important deadlines to remember before this tax year comes to a close. Of course, there are the usual suspects, including the cut-off to make year-end donations and receive a donation receipt; the instalment payment deadline for farmers and fishers; and a new one this year for CERB repayment. It’s an issue that has already caused many Canadians stress and confusion. Here’s a summary of salient tax deadlines remaining for 2020:

Tax and financial advisor,  now is the time to help your clients set their new year goals: and here’s a 2021 tax filing and investment planning milestones checklist to help with the process.

Now is the right time to plan your professional development opportunities and earn CE credits in 2021. Explore your options with our new interactive Calendar of Educational Events 2021 and reserve your time to get your world class financial education in place.

There are many definitions of income on the tax return and understanding them makes a big difference in your relationship with the CRA, as many CERB recipients have recently found out.  Over 440,000 “education letters” have been sent to recipients warning of repayment requirements before the end of the year. It continues to beg the question:  what exactly is the definition of “income”?

Last week, we discussed the pros and cons of continuing to contribute to the CPP when compared to a TFSA instead.  This week, we discuss planning opportunities for taxpayers under and over age 65.