Fall Reviews:  Did You Claim the Disability Tax Credit?

The Disability Tax Credit (DTC) may be one of the lesser understood tax credits but for your clients who have a disability it is critically important. Having a conversation with your clients about health changes in their life circumstances and those of their loved ones could help them access this tax credit.  

A tell-tale sign the federal budget is right around the corner was the February 12 meeting of the Finance Minister with private sector economists for their forecasts on the Canadian and global economies. This this year, a number of significant tax changes are expected, if the newly elected Liberal government’s election platforms are implemented.

On February 5, the Finance Minister announced that Canada and Switzerland have signed a Joint Declaration which will see the two countries exchange financial account information automatically. With this agreement, CRA expects to curb tax evasion by Canadian residents who earn income in Switzerland but do not report it on their Canadian tax returns.

CRA has released a newly revised 9-page form T657, which takes into account the increase of the Lifetime Capital Gains Deduction (LCGD) to $1 Million for Qualified Farming and Fishing Properties for dispositions after April 20, 2015 and to $813,600 for Qualified Small Business Corporation Shares for tax year 2015. It can safely be said this form is not for the faint of heart.

Cross border taxation is increasingly of interest to tax advisors and their clients, particularly if they are US citizens living in Canada. The cost to renounce US citizenship, for example, has recently increased to $2350; while challenges to tax filing compliance have failed, so far.

What’s important in building modern financial practices?  The top-rated speaker at the recent Distinguished Advisor Conference was someone who focused on the softer side of financial advice—peak performance coach, author, and speaker Craig Dowden, PhD – and his answer to the question was simple:  empathy.

According to Statistics Canada1, 95% of Canadians age 15 years and older have some form of income. There are over 28 million tax filers and two-thirds of them pay income taxes, on average 16% of total income. Fully 70% of that income came from employees, whose earnings are subject to tax withholdings that employers make on their behalf.