Time’s Up: CRA’s 100 Day Mandate for Improvement

After years of frustration on the part of tax professionals and taxpayers alike, the Finance Minister ordered the Canada Revenue Agency to clean up its act in 100 days. Specifically, the improvement plan was to run from September 2 through December 11. Finance Minister and Minister of National Revenue, Francoise-Phillippe Champagne instructed CRA to fix “unacceptable wait times and service delays.” Time’s up this week and CRA has released an update on progress. What gets measured, gets done. Let’s see what CRA’s metrics show. 

A recent study by the Canadian Institute of Actuaries sheds new light on the needs of Canadian retirees and pre-retirees for sound financial planning for their futures. COVID has had a dramatic effect on retirement plans, overall health and on preparedness for long-term care in the future. Surprisingly, more than half do not have a financial plan for retirement. This is an important time for astute tax and financial advisors to work more proactively with new and returning clients. Six planning tips follow.

Many proprietors in the tax industry are struggling to find qualified staff prepared for a complex 2022 tax season, and it’s coming up fast. Now is the time to train new and returning staff for filing season, and for Black Friday we’re extending our best offer of the year: only $395 per course (save 56%) when you enrol yourself or your team members in Basic Bookkeeping in a Digital World or Professional Income Tax Course – Entry Level certificate courses. Our goal is to help business owners prepare for another unprecedented filing season. As loyal Knowledge Bureau Report readers, you have an exclusive opportunity to take advantage of this training opportunity first.

2022 CRA limits further enhance the tax deductions that Personal Pension Plan (PPP) clients have over Individual Pension Plan (IPP) clients. The gap of $91,194 in 2021 is now almost $12,000 larger in 2022! Those of you who like to project the extra wealth your clients will enjoy over long periods of time thanks to the power of tax-deferred compound interest should rejoice at this news, according to JP Laporte and Knowledge Bureau Partner for the first annual virtual Pension Conference for Accounting Firm Partners and their staff taking place on November 30, 2021. RSVP now - who wouldn't want an extra $100,000 in deductions over an IPP during one's career?

Due to a court injunction, the Disability Tax Credit (DTC) Promoters Restrictions Regulations, which were to have taken effective November 15, 2021 have suspended until further notice.  The regulations were to have limited fees paid for DTC applications to $100.  We will keep you updated regarding the status of the injunction, but here’s what you need to know about the new regulations:

A big new tax filing deadline is approaching and tax and financial advisors must make their clients aware: all non-resident trusts and most express trusts resident in Canada must start filing T3 returns for tax years ending on or after December 31, 2021 and the filing deadline is coming up fast:  March 31, 2022.  Here’s what’s at issue:

Tax compliance regarding T3 Trust returns is in the spotlight as new efile requirements begin for the tax filing years ending December 31, 2021 forward.  Here’s a primer on what you need to know; a preview of a newly revised professional certificate course, Filing T3 Trust Returns at Knowledge Bureau by Faculty Member and Instructor, Diane Elliott.