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:

The Distinguished Advisor Workshops soon to be running across Canada will discuss a major change in reporting or principal residence dispositions that will affect Canadians and the tax preparation broadly:  all principal residence dispositions must be reported on the tax return starting in 2016.

According to last month’s Knowledge Bureau Poll, the existing charitable donations tax credit could be more generous to taxpayers. So said 75% of the respondents, who also gave suggestions for improvement of the credit.  But the tax tail didn’t always wag the donation dog! Many respondents gave to charity for other reasons.

Tax advisors must select industry classifications as they prepare tax returns for their business-owner clients. They will be interested to know that the North American Industry Classification System (NAICS), around since 1997, is updated every five years, and the most recent update was just released September 29, 2016.

It takes specialized skills to marry tax and financial planning competencies to help clients adequately fund tax-efficient income requirements. Now tax and financial advisors can certify to specialize and provide this new value-added service with the newly revised Tax-Efficient Retirement Income Planning Course.

Are you aware of all of the latest changes announced as recently as this month that will affect tax-efficient wealth planning for your clients?

"I’m not afraid of storms, for I’m learning how to sail my ship." Louisa May Alcott