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.

"This recession signals fundamental change for financial advisors" says industry expert and Knowledge Bureau faculty member, Jim Ruta. ìAdvisors who change their business model accordingly will prosper. Those who do not will become irrelevant.î "Those advisors who succumb to 'paradigm drag' and stick with their old ways despite the obvious necessity to change will have tremendous challenges in the post-recession marketplace. But, those who change appropriately will be the advisors of the future," said Ruta at the launch of his new book, "Master Your Money Management - How to manage the advisors who work for you", published by The Knowledge Bureau. Ruta is teaming up with internationally acclaimed life coach John Kanary to give advisors the tools to change their business and prosper as a "Post-Recession Advisor" at their Million Dollar Training Camp, May 23rd and 24th, 2009 in Toronto, sponsored in part by The Knowledge Bureau. Kanary helps advisors overcome fear, frustration and failure to prosper in these "interesting times". Ruta reveals the ideal post-recession business model that has caught national media attention. Check out the Million Dollar Training Camp website or call 1.866.546.7882 today for more details, the full agenda, early bird and new advisor pricing.

An experienced advisor in the industry seemed to hit it on the head when he declared May 1st as the start of the next phase of tax season ó adjustment and audit season! When it comes to taxes, it's not only about getting those returns filed on time, but most importantly, it's about storage and retrieval! The "off-season" is fraught with the potential for tax audit activity by CRA and the need to adjust returns for omissions, missed slips, and of course, the inevitable errors made during the rush! What should you do if you missed an important provision or document? Most advisors will tell their clients to come back and see them immediately upon discovery. They will also cover an important technique in avoiding expensive gross negligence or tax evasion penalties: voluntary compliance (you tell CRA about errors or omissions before they tell you, on that off-chance that you overstated deductions or credits, or understated income.) The following filing milestones should also be noted to answer these and other questions about tax compliance responsibilities all year long: Adjusting a return to correct an error or omission: 10 years following the end of the relevant taxation year. Appeals with the Tax Court: No later than 90 days from the date of mailing of a Notice of Reassessment or confirmation of an assessment No earlier than 90 days following the date of mailing of a Notice of Objection, if CRA has not responded to the Objection Collection of taxes owing: Generally, 10 years from the date of assessment. A collection action cannot generally be undertaken until 90 days after the related Notice of Assessment or Reassessment has been mailed. Where a Notice of Objection has been filed, or an appeal has been made to the Tax Court, collection of the tax debt will be suspended until the dispute is finalized. Filing Deadlines: Final Returns of Deceased Taxpayers: Where the individual (unless self-employed or the spouse of a self-employed taxpayer) dies before October, April 30 Where the individual dies after September, 6 months following death Where the individual is self-employed or the spouse of a self-employed individual, the later of June 15 and six months following death The due date for the surviving spouse is the same as the due date for the deceased taxpayer To defer payment of income tax by making up to 10 equal consecutive annual payments: first instalment must be paid on or before the day on which payment of tax was otherwise payable. Filing Deadlines: Trust Returns March 31 for inter vivos trusts No later than 12 months following death for testamentary trusts, and annually thereafter Filing Deadlines: Corporations: 6 months following the end of the taxation year Instalment Payments: Corporations: On or before the last day of each month Objection to a Notice of Assessment or Reassessment: Generally, 90 days from the date of mailing of the Notice Individuals and testamentary trusts can file within one year of the due date of the related return Record retention, Individuals: Generally, six years from the end of related taxation year. Record retention, Corporations: Permanent corporate records must be retained for two years following dissolution. Registered investments: Manage registered investment accounts around these milestones: Contributions, RRSP: During the calendar year or within 60 days of the year end Deduction, Refund of Unused RRSP Contributions: Form T746, with tax return filed for the year in which amounts were withdrawn. Refunds from the CRA: Generally, three years from the end of the related taxation year. However, individuals and testamentary trusts can apply for refunds for up to ten years following the end of the related taxation year. Where the application for a refund reflects a loss carryback, the application period is generally extended to six years, and to seven years for corporations that are not Canadian controlled private corporations. Refunds, Overdeducted CPP or EI Premiums: File separate from PD24 for each worker with T4 information return within the following time limits: CPP Contributions: no later than 4 years from end of year in which overpayment occurred EI Premiums: no later than 3 years from end of year in which overpayment occurred For more information on tax planning provisions and compliance requirements subscribe to The Knowledge Bureau's online tax reference for taxpayers, financial advisors and their clients: EverGreen Explanatory Notes.

The Canada Revenue Agency (CRA) has announced some additional features added to the Represent a Client Service.   When registering with the service or updating information regarding a client, the option for providing an e-mail address is now available.  The CRA will be using the e-mail address to provide information on upcoming events, future enhancements or possible service interruptions.  It should be noted that the CRA will not be utilizing e-mail to contact representatives or businesses for tax related information.   In addition, a Client Summary feature has been added to the representatives screen of My Account, which will allow them to view a list of accessible information such as: account balances and instalment details assessment/reassessment details registered retirement savings plan/Home Buyers' Plan/Lifelong Learning Plan information disability details carryover amounts Another upgraded feature is providing the ability to tax preparation and payroll service businesses to create groups of representatives within the Represent a Client service. This will allow large tax service and payroll businesses to separate groupings of clients or businesses into more manageable sizes.

By Evelyn Jacks, President, The Knowledge Bureau Provincial budgets coming down in difficult times make the job of Finance Minister even more interesting. The question of how to build successful new economies is often the most difficult one moving forward. The federal government posted a paper on the issue before the financial crisis. Entitled Advantage Canada [1] the paper boldly pronounced that the modern world economy has changed and that from Canada's perspective, the new ground rules for success can be summarized in three core, fundamental truths: People and capital are mobile. Talented, creative people are the most critical asset to a successful national economy. A favourable business environment is essential to retaining, attracting and growing high-quality, innovative enterprises and encouraging them to compete with the very best. According to this document, the fundamental determinants of long-term economic growth in developed countries are: A skilled and highly educated workforce. High rates of private and public investment in research and innovation. Modern infrastructure. High rates of business investment in machinery and equipment. In turn, private investments in these key determinants of growth are encouraged by: Low public debt and low and stable inflation. Low taxes on work, savings and business investment. A high-quality and accessible education system. A competitive business environment, including effective regulation and competition policies. Stability and efficiency in the financial system. Openness to trade and investment. Flexible labour markets. Finally, the paper suggests that there are barriers and challenges to address if we are to improve our quality of life and become a world leader for today and future generations. These barriers and challenges include: High taxes that are discouraging investment and initiative. Income taxes on individuals and businesses in Canada remain high by international standards. Personal and corporate income taxes as a percentage of GDP are higher in Canada than in all other G7 countries. Business investment in equipment, innovation and training. Businesses in other OECD countries are investing on average more in research and development, and machinery and equipment than do our businesses. Participation in workplace training is also higher in other leading OECD countries. The need for skilled labour. There are shortages of skilled labour in a number of provinces and territories. These shortages are particularly acute in Alberta and Saskatchewan, where more than one-quarter of manufacturers report that labour scarcity is limiting operations. Now, your turn. What are your thoughts?   [1] Department of Finance Canada

The Minister of National Revenue and Minister of State (Agriculture) have provided taxpayers affected by flooding in Manitoba an opportunity to extend the deadline for filing their tax returns from April 30, 2009 to June 1, 2009.   The Honourable Jean-Pierre Blackburn announced that "the Government of Canada understands that taxpayers in Manitoba have encountered great difficulties during the flooding and we know that people are primarily concerned with protecting their homes and communities from damage and as a result may not be able to file their personal income tax returns on time."   For those unable to file their returns by June 1, 2009, a written request should be submitted using Form RC4288 Request for Taxpayer Relief by those taxpayers and businesses impacted by the flooding and are seeking an additional extension of the filing deadline for tax returns.    The form can be accessed by clicking here.

The CRA has released an updated guide for Past Service Pension Adjustments (Guide T4104) which contains general instructions and information for pension plan administrators to calculate past service pension adjustments (PSPA). These PSPA calculations may be required for employees that are being provided with new lifetime retirement benefits or when existing benefits are improved for members. The guide will provide information on the following: What is a PSPA How a PSPA arises How to calculate a PSPA How to report PSPA's Common situations and examples are provided in the guide to calculate figures needed for PSPA, benefit increases that may be excluded when calculating pension credits, the two methods for calculating the PSPA amounts and special rules that may impact multi-employer plans. This guide is important because the last time the CRA issued guidance on calculating PSPA's was in 1999, and the T4104 guide should be used to calculate PSPA's for any year until a new version is issued. To view the new T4104 guide, click here.