The CRA TSlip Saga: An Update

This tax season has been particularly challenging for both taxpayers and tax professionals. The Canada Revenue Agency (CRA) provides tax information slips—such as T3, T4, T5, and their variations—through secure online portals: My Account and Represent a Client (RAC). This year, there were lots of problems with these portals, and now, it appears, CRA is not being quite transparent about when the slips were actually visible to clients and that doesn’t seem fair. Here’s an update on where we stand now.

The unemployment numbers released for March by Statistics Canada in a new weekly report are staggering. They provide a grave assessment of the current reality: swift unemployment is taking place across the country it's putting incredible stress on Canadians, especially for those in the core working years (aged 25 to 54). Financial education and tax-focused support is required and professionals in these industries need to be proactive. We offer 6 important ways to help. 

CRA is warning Canadians that if they mistakenly received the Canada Emergency Response Benefit of $2,000 twice, as many reported last week, they will be coming after it.  So make sure you don’t spend both payments: audit risk is high. Canadians can expect that verification activities will take place after the fact, as the first priority for government has been to get money promptly into the hands of Canadians who have been suddenly laid off.

It’s been a difficult time for so many families in Canada.  Some of us have lost loved ones, some of us are not well, most of us are forced apart from our families and friends, and there is no shortage of financial worries. But, with the advent of spring and the opportunity to reflect on resurrection and rebirth through our traditional celebrations, there is always hope for the future. We wish you peace and joy in knowing that soon we will be together again. Please accept our sincerest thanks and best wishes for the privilege of sharing knowledge with you.    - Your Knowledge Bureau Team

The federal government announced a third round of enhancements to its Canada Emergency Wage Subsidy (CEWS) program on April 8, as it tries to stave off thousands of bankruptcies across the small business community. MPs will need to be recalled to parliament to enact the legislation, which reduces the 30% revenue test to 15% for March only and introduces an alternative method for calculating the revenue.  Some employer-paid CPP/EI refunds may also be available.  

It’s money that Canadians needed quickly and the government must be commended for their processing over 4 million CERB applications to date, and close to 2 million this week alone. But are Canadians setting themselves up for a significant audit process in the future?  These funds are taxable, and there are additional audit risks that should be a hot topic of discussion for advisors and their clients.

Here’s a social distancing tax tip:  convert your in-person newspaper delivery into a digital subscription.  If you do, you’ll receive a new tax credit on the 2020 tax return. Here are the details: