Bill C-31: Royal Asset and New CRA Powers Could Come Soon

Changes are coming to the Income Tax Act and both you and your clients will all be affected with new tax risks including longer tax audits. Bill C-31, which passed second reading in the House of Commons on June 3 and is now at committee stage, contains elements of previous Federal Budgets that will expand the CRA’s compliance and enforcement powers. Here’s what you need to know and pass along to your clients:

Last week Knowledge Bureau Report discussed who’s eligible to make a moving expense claim. This week: what’s deductible and what’s not?

Are you using your automobile for work or for your own business? Perhaps you are unsure whether you should make a claim for auto expenses this year; or maybe you suspect you aren’t claiming everything you are entitled to. This is a good reason to see your tax advisor, and make sure you are prepared to make a full claim.

Who pays higher marginal tax rates: the executive earning $250,000, or the family that makes do on $60,000? If you said the family, you would be correct. That’s because marginal tax rates are higher in income brackets that are impacted by the clawback of social benefits and tax credits. But when does that happen?

In gratitude for your continued support, please accept our very best wishes for the holiday season. May it be restful, joyful and peaceful; and may your new year be blessed with good health and prosperity.

Do you know how to prepare a T2 corporate return for your small business clients?  Knowledge Bureau’s T2 Corporate Tax Preparation for Micro Businesses course is an excellent solution for financial advisors who want deep practical knowledge on small business tax issues.

"You are never too old to set another goal or to dream a new dream." C. S. Lewis