Mark Your Calendar: Critical Deadlines for May and June

Tax season never truly ends, it seems, as there are many more upcoming tax filing, investment planning and education milestones to discuss with your clients over the next six months. Check out our handy checklist below and then test yourself – what are the conversation openers you’ll use and with which clients? It’s your opportunity to shine with every member of the household:

Canada has a watchdog whose job it is to keep Canada Revenue Agency accountable to the taxpayers it serves. Mr. J. Paul Dubé was appointed as Canada's first Taxpayers' Ombudsman in February, 2008. His role is to investigate complaints from those who feel that their treatment by CRA has been unfair. As well, he works to ameliorate service to taxpayers by identifying areas that need improvement. The Taxpayers' Ombudsman advises the Minister of National Revenue about issues related to service at the CRA.  He also enforces the Taxpayers Bill of Rights. Since his initial appointment Mr. Dubé has prepared several special reports which have been tabled in Parliament. On February 9, 2011, it was announced that Mr. Dubé had been reappointed to the position for a five-year term. ADDITIONAL EDUCATIONAL RESOURCE: Essential Tax Facts: 2011 Edition by Evelyn Jacks

There has been some question as to what constitutes a financial service and what ancillary or supporting activities are subject to GST/HST. Financial services are listed in subsection 123(1) of the Excise Tax Act and are exempt from GST/HST. Activities that support the delivery of a financial service, such as management, administration and promotion, are excluded from the definition of financial services and are, therefore, taxable.  Bill C-9, the Jobs and Economic Growth Act, attempted to refine the definition of these activities and there has been further discussion since it was introduced on March 29, 2010. Bulletin B-105, released on February 9, 2011, attempts to clarify this through eighteen examples taken from a cross section of the industry. Highlighted in Bulletin B-105 are three activities that are not financial services: asset management services, credit management services and preparatory services. The question of a group of services, some of which are taxable and some of which are tax exempt, is also discussed. The distinction between single supply and multiple supply must be made, and the reader is referred to GST/HST Policy Statement P-077R2 Single and Multiple Supplies. The term "arranging forî in the context of financial activities is also discussed; this refers to services provided by intermediaries. Several of the examples in B-105 will resonate with readers of the Knowledge Bureau Report. Example 3 refers to a full service broker; his activities are considered to be "arranging for a financial serviceî and, therefore, within the definition of "financial serviceî and tax exempt. Example 4 refers to a mutual fund salesperson in receipt of sales and trailing commission for sales and ongoing client service. He is considered a "financial intermediaryî and his activities too fall within the definition of "arranging for a financial serviceî. Although there is no example for a fee-for-service financial planner, the list of exclusions in the Excise Tax Act includes "the service of providing adviceî so one would assume that this service is GST/HST taxable. It is always a good idea to enlist the advice of an accountant to make sure that any business activities undertaken comply with current tax legislation. ADDITIONAL EDUCATIONAL RESOURCE: Master Your Money Management, Basic Bookkeeping, Advanced Bookkeeping and EverGreen Explanatory Notes  

 Last week's release of the Task Force on Financial Literacy's report to the Finance Minister included 30 recommendations to enable taxpayers to maximize their knowledge, skills and confidence in dealing with their finances, including the a greater uptake in government programs designed to assist Canadians. Some of those programs are initiated by filing a tax return, which is complicated for most. "Every year millions of Canadians miss making RRSP contributions, which in turn can reduce their Canada Child Tax Benefits, GTS/HST Credits or other non-refundable tax credits on the return,î says Evelyn Jacks, author of 46 books on tax and personal finance including the 6th edition of Essential Tax Facts. "Failing to file a tax return will also mean you'll miss creating TFSA contribution room, and that results in a missed opportunity to build tax free investment earnings. Lucrative deductions like moving expenses or credits like medical expenses and disability amounts are common misses, too. Tax Literacy is therefore a very important subset of financial literacy.î Mrs. Jacks, President of Knowledge Bureau, was a member of the Task Force on Financial Literacy and included a quiz to help Canadians test their Tax IQ in her book this year. The Task Force's report, entitled Canadians and Their Money can be downloaded here. Mrs. Jacks predicts the significance of the report will begin to unfold soon as stakeholders interested in improving Canada's financial literacy embrace the opportunity to collaborate, share responsibility, and begin a process of lifelong learning in the implementation of its 30 recommendations. Among these recommendations are outreach initiatives to promote awareness of social programs, professional development opportunities for teachers, and workplace training and communication. There is a place, too for highly informed tax and financial professionals to expand their role as educators in working with their clients. "It was an honor and a privilege to serve on this Task Force,î said Mrs. Jacks. "We met many passionate people including dedicated individuals from all the advisory services, authors, private educators, associations and organizations of all sizes--all sincere in their offer to help Canadians better understand their financial options. Whereas last week the report was soundly applauded for its strategy and framework, now the important work can begin, and what better time than tax season to do so?î ADDITIONAL EDUCATIONAL RESOURCES: Master Your Personal Finance Book Series;  Books by Evelyn Jacks, including Essential Tax Facts, Master Your Taxes, Make Sure It's Deductible, Get Your People to Work Like They Mean It, and many more can be found at Chapters Indigo;Amazon;the Knowledge Bureau and and in better bookstores everywhere.

OTTAWA, Feb. 8 /CNW/ - Minister of Finance Jim Flaherty and Minister of State (Economic Development Agency of Canada for the Regions of Quebec) Denis Lebel will be available for a photo opportunity with an Ottawa family at Entraide budgétaire Ottawa on Wednesday, February 9, 2011, at 8:45 a.m. A media availability will follow at 9:00 a.m., at which Minister Flaherty and Minister Lebel will be joined by the Chair of Canada's Task Force on Financial Literacy, Donald A. Stewart, CEO of Sun Life Financial Inc. The photo and media availabilities will take place at Entraide budgétaire Ottawa, 300 Olmstead Street, in Ottawa, Ontario.   For further information: Annette RobertsonPress SecretaryOffice of the Minister of Finance613-996-7861 Jack AubryMedia RelationsDepartment of Finance613-996-8080

Taxpayers may assign their rights to an income tax refund to a tax discounter in order to get the refund immediately. The tax discounter keeps a percentage of the refund according to rules established through the Tax Rebate Discounting Act. CRA recently updated its Information for Discounters. New details are available on the Quebec Sales Tax, System for Electronic Notification of Debt (SEND) and HST implementation and rate changes. The revised Guide for Discounters (T4163) is required reading when applying for a discounter code.

Tax preparers who have struggled with lost T1013 Authorization Forms and busy CRA fax lines will be happy to know that, as of February 14, 2011, processing of these forms filed online will begin. Representatives who have registered with CRA for the Represent a Client service may file the T1013 electronically. A New CRA User ID and Password is required. There will be a 4 day delay before access to client information is granted ñ a welcome improvement as a result of electronic filing! Please note that the current service standard for T1013 processing during peak periods is 20 business days, and 5 business days for non-peak periods (mid-July to mid-March).