Confirmed:  The CCR for Small Business is Tax Free

Ottawa has confirmed that the CCR for Small Business received by eligible Canadian-controlled private corporations (CCPCs) will be tax free for the 2019-20 to 2023-24 fuel charge years, as will the final payment for the 2024-2025 fuel charge year.  Draft legislation was released on June 30, 2025 with this announcement; and will be introduced for law making in Parliament this Fall.   Some of the more significant details are discussed below.

Manitoba residents: are you aware that you can benefit from the Manitoba Tuition Fee Income Tax Rebate if you graduated from a post-secondary institution since January 1, 2007? If you are now employed in Manitoba and pay tax in the province, you can apply for a rebate of 60% of your tuition costs to reduce the income tax payable. To apply for the rebate, the total tuition paid over the years you attended school must be reported on your T1 income tax return. A portion of these fees paid will be used to reduce the amount of Manitoba tax you are required to pay. The provincial tax payable will be reduced over the next six or more years, and you can even delay the first claim by as much as ten years. Example: Aaron graduates in 2008, total tuition paid $20,000 Maximum claimable - $12,000 (60% of tuition) Claim in Year One Manitoba Tax Payable - $600 Tuition Rebate is the lesser of: 10% of tuition ($1,200) $2,500 (maximum available annually) Manitoba tax payable - $600 Rebate - $600 Remaining tuition claimable $11,400 ($12,000 - $600) Year Two Manitoba Tax Payable - $2,400 Tuition Rebate is the lesser of: 10% of tuition ($1,200) $2,500 (maximum available annually) Manitoba tax payable - $2,400 Rebate: $1,200 Remaining tuition claimable $10,200 ($11,400 - $1,200) Years Three to Ten: Assuming Manitoba tax payable remains above $1,200 into the future, the tuition rebate will be available for at least the next eight years. Here are the important points related to the Manitoba tuition fee income tax rebate: 60% of tuition fees paid up to $25,000 are claimable under the program Initial claim must be made within 10 years of graduation The benefit can be applied over the next 6 to twenty years Six years is the minimum period over which the rebate can be claimed Tuition fees DO NOT have to be paid in Manitoba (CRA must recognize the institution in order to make the initial claim) You must live in Manitoba to make the tuition claim on your return Note that eligible grads have up to 20 years in which to claim their rebate. The minimum period over which the full rebate can be claimed is six years, so in principle, someone could wait 14 years before starting to file their claims. Thus, eligible 2007 grads who neglected to file a claim or were unaware of the program have lost nothing. Per Manitoba Finance statistics, for the 2007 tax year the total amount of tuition claimed was $20.3 million, or an average of $4,265 per claimant. Saskatchewan has a similiar program called The Graduate Retention Program, which is a refundable income tax credit which rebates up to $20,000 of tuition fees paid. There are various rebates available to students based on the length and type of program they are enrolled in. In New Brunswick, all students enrolled for the first time at a university and attend a provincially funded university are eligible for a $2,000 one time benefit. For further information on any of these programs, check with your provincial government's Department of Finance.

As we mentioned in last week's Breaking Tax and Investment News, it's that time of year again, back to school and back to enrolling our children in their various activities. Most of us are aware of the Federal government's Canada Fitness Credit, which is a tax credit of up to $500 ($1,000 for disabled children) provided for enrolling children in an eligible program of physical activity, so let's do a quick review of the eligibility guidelines: Eligibility for the Credit: Fees must be paid in respect of eligible expenses in an eligible program of physical activity. Eligible expenses will include those for the operation and administration of the program, instruction, renting facilities, equipment used in common (e.g. team jerseys provided for the season), referees and judges, and incidental supplies (e.g., trophies). A program must be: ongoing (either a minimum of eight weeks duration with a minimum of one session per week or, in the case of children's camps, five consecutive days), supervised, suitable for children, and substantially all of the activities must include a significant amount of physical activity that contributes to cardio-respiratory endurance plus one or more of: muscular strength, muscular endurance, flexibility, or balance. Organizations providing eligible programs of physical activity will determine the part of the fee that qualifies for the tax credit. Ineligible Expenses: the purchase or rental of equipment for exclusive personal use travel, meals and accommodation. Tax Receipting. Claims for the children's fitness tax credit will need to be supported by a tax receipt that contains information sufficient for the CRA to monitor compliance. Similarly, organizations will be required to keep relevant books and records. Child Care Expenses. To ensure that the same expenses are not claimed under both the children's fitness tax credit and the child care expense deduction, an individual will not be allowed to make a claim for a children's fitness tax credit in respect of amounts for which any person has made a claim under the child care expense deduction. Public Transit Credit: This credit was introduced in 2006 and is claimable for every family member by either spouse or the family member depending on best benefit. Allows for costs of public transit passes that cover a period of at least 30 days This requirement is relaxed for purchases relating to travel after 2006, in two respects. First, the cost of an electronic payment card will qualify for the credit provided the card provides at least 32 one-way trips in a period not exceeding 31 days. Secondly, the cost of a weekly transit pass covering a period of 5 to 7 days will also qualify so long as the taxpayer purchased at least four consecutive weekly passes. Appropriate receipts are required. In addition, a transit authority issuing an electronic payment card must provide sufficient documentation of use to allow the CRA to audit the claim.

The Canada Revenue Agency has announced the prescribed annual interest rates that will apply to any amounts owed to the CRA and to any amounts the CRA owes to individuals and corporations. These rates are calculated quarterly in accordance with applicable legislation and will be in effect from October 1, 2008, to December 31, 2008. Income tax The interest rate charged on overdue taxes, Canada Pension Plan contributions, and Employment Insurance Premiums will be 7%. The interest rate paid on overpayments will be 5%. The interest rate used to calculate taxable benefits for employees and shareholders from interest-free and low-interest loans will be 3%. Each of these rates remains unchanged from the previous quarter. Other taxes The interest rate on overdue and overpaid remittances for the following taxes will be: Tax and Duty Overdue remittances Overpaid remittances GST 7% 5% HST 7% 5% Air Travellers Security Charge 7% 5% Excise Tax (non GST) 7% 5% Excise Duty (except Brewer Licensees) 7% 5% Excise Duty (Brewer Licensees) 5% N/A Softwood Lumber Products Export Charge 7% 5%

NEWS RELEASE August 28, 2008 COTTAGE COUNTRY DILEMMA: HOW TO PASS IT ON--CONFLICT FREE Winnipeg, Manitoba. The days are getting shorter, the nights longer, and the questions more frequent: when should we start talking about passing on the family cottage? Filled with childhood memories and intergenerational labor, for many families this is a bigger dilemma than meets the eye. Renowned Winnipeg-based national financial educators and authors, John Poyser and Evelyn Jacks have teamed with The Winnipeg Free Press to present the first-ever strategic planning workshop for cottage owners, entitled "Pass It On!", at The Winnipeg Convention Centre, Saturday October 18 from 8:00 AM TO 12:30 PM . "Cottage Owners flounder when it comes to succession planning" says lawyer John Poyser of the Wealth Management Group at Inkster, Christie Hughes. "This half day workshop will cover everything you need to know and provide answers to cottage owners in need of concrete direction, including a Cottage Succession Planning Guide to discuss with family as well as legal and financial advisors." Evelyn Jacks, best-selling tax author and President of The Knowledge Bureau, agrees. "There are significant personal tax issues to be considered, and we are pleased to partner with John's firm and The Winnipeg Free Press to provide this unique educational seminar". "This workshop is a natural fit for The Winnipeg Free Press with many of our faithful readers now in the position to concern themselves with succession planning." says Marnie Strath, Marketing Director of The Winnipeg Free Press. Pass It On! will answer difficult, yet common questions in an informational and entertaining session. The audience will consider: Should the cottage be in joint names? Should we give it to the kids now? Or leave it to the kids in the will? Who will pay for the new roof? How can we make sure each child is treated equally? How do we deal with this as a blended family? Adult kids living common lawóis your cottage at risk? What if I have a cottage in one province and a house in another? How do we deal with the one child who lives in Britain or Vancouver? What should we do when one of my children wants cash? The workshop is advantageously priced to encourage family participation. Brunch is included. For more information contact: The Knowledge Bureau online at knowledgebureau.com or call 1-207-953-4769. Click here to register now. For interviews with John Poyser and Evelyn Jacks please contact Marion Trapp at the number above. ABOUT INKSTER, CHRISTIE, HUGHESThe Wealth Group of Inkster, Christie, Hughes, LLP is a boutique practice group focusing on succession issues, including cottage succession. ABOUT THE KNOWLEDGE BUREAUThe Knowledge Bureau is a leading educational publisher and national post-secondary educational institute specializing in certificate and designation courses for financial advisors and their clients.

Cash-strapped? The tax return is a great place to look for new cash. Many taxpayers miss lucrative deductions and credits each year and can file an adjustment to their returns to reap their just rewards. To do so complete Form T1ADJ. One of the most commonly missed tax deductions is the GST Rebate, claimed by individual taxpayers on Form GST370. Tax advisors should ask new clients if they qualified for it in any of the past 10 years. If it was missed, the rebate is recoverable. Here are some quick tax facts about making a claim: Employees who claim employment expenses on Line 229 of their T1 return and are not in receipt of a reasonable allowance for those expenses may apply for a cash rebate of any GST or HST paid on these expenses on Line 457. Expenses eligible for the rebate include: office expenses, travel expenses, entertainment expenses, meals and lodging, motor vehicle expenses, leasing costs, parking cost; miscellaneous supplies (e.g. street maps, stamps, pens, pencils, and paper clips), and capital cost allowance on motor vehicles, aircraft, and musical instruments acquired after 1990 tradesperson's tools apprentice vehicle mechanic's tools With the GST rate reduction as of January 1, 2008, the rebates are 5/105 and 13/113 for expenses on which GST and HST is paid. Prior Filing GST Rebate Omissions Taxpayers who have failed to claim the GST/HST rebate in prior years may file adjustments to recover this credit for the prior ten year period.

Many frenzied parents find the "back to school" rush a financial burden.  Besides clothing, school supplies, transit passes and books, there is tuition for university students, a rising cost across the country.  Last week we covered the rules behind tax relief for tuition fees.  This week, consider the monthly credits earned by post-secondary students, which will turn into cash at tax time for students or their supporting parents, grandparents or spouses.  No receipts are necessary to benefit from this lucrative credit, but Form T2202A must be received from the university or designated educational institute. Advisors and clients should check the points below for a better understanding of qualifying criteria. EDUCATION AMOUNT Full Time Students. The credit for full-time students is $400 per month. A full-time education amount may be claimed for each whole or part month in the year that the student was enrolled in a qualifying educational program at a designated educational institution and the student: was enrolled full time, was enrolled part time and qualified for the disability amount, or was enrolled part time because of a mental or physical impairment. Qualifying educational programs (FULLTIME): a program that lasts at least 3 consecutive weeks and requires a minimum of 10 hours of instruction or work in the program each week (not including study time). Instruction or work includes lectures, practical training, and laboratory work. It also includes research time spent on a post-graduate thesis. After 2003, a program taken by the student in connection with the student's employment duties, even if that student receives income from that employment, will however qualify, provided only that the employer does not reimburse the tuition cost. Prior to 2004, the opposite was the case: such programs did not qualify, whether the employer reimbursed the student or not. Non-qualifying educational programs: Students who receive, from a person with whom he or she deals at arm's length, a grant, reimbursement, benefit, or allowance for that program do not qualify. However, receipt of a scholarship, fellowship, bursary, or prize received, or any benefit received under the Canada Student Loans Act, Canada Student Financial Assistance Act, or the Act respecting financial assistance for education expenses of the Province of Quebec does not disqualify the education program. Part Time Students. The credit is $120 per month. These may be claimed for each whole or part month in the year that the student was enrolled in a specified educational program at a designated educational institution. A specified educational program is a program that lasts at least 3 consecutive weeks and requires at least 12 hours of instruction each month. NOTE: KNOWLEDGE BUREAU SELF STUDY COURSES QUALIFY! Only one education amount may be claimed for each month ó the full-time amount or the part-time amount. Designated educational institutions include: Canadian universities, colleges, and other educational institutions providing courses at a post-secondary school level, Canadian educational institutions certified by the Minister of Human Resources Development as offering non-credit courses that develop or improve skills in an occupation, universities outside Canada where a Canadian student is enrolled in a course that lasts at least 13 consecutive weeks and leads to a degree, and universities, colleges, or other educational institutions in the United States that give courses at the post-secondary school level if the student is living in Canada (near the border) throughout the year and commutes to that institution. Age limitation for education credit. Students who are under 16 at the end of the year, may claim the education amount only for courses taken at the post-secondary level. Ineligible Amounts. Students may not claim the education amount if they: received a grant or were reimbursed for the cost of courses, other than by award money received, received a benefit as part of a program (such as free meals and lodging from a nursing school), received a salary or wages while taking a course related to their job, or received an allowance for a program such as a training allowance.   Join us in the coming weeks to hear about other FAMILY TAX PROVISIONS: Public Transit Passes Children's Fitness Credit Medical Expenses