Finance Canada Drops Draft Legislation August 15

All professional tax practitioners, financial advisors should take note of an important mid-summer release of draft legislation to implement some of the proposals from the November 2024 Fall Economic Statement, the April 2024 Budget, the EIFEL rules announced on August 12, 2024, and rules relating to passive income of foreign affiliates announced in the 2022 federal budget.  This draft legislation also introduces more modifications to new trust filing requirements. Brief highlights appear below;  technical details will be discussed in the September 17 and November 5 CE Summits and Knowledge Bureau’s certificate course on T3 Filings. 

Correct errors & omissions prior filed returns and benefits BEFORE December 31, 2023, particularly if you want to adjust deductions and credits you may have missed on the 2013 tax filing year.  It will be statute barred on January 1, 2024.  But for families there is another important filing deadline on December 31 related to their Canada Child Benefits.  Don’t miss it – you could get $450 back!  Here are the details:

 To pull ahead of high inflation, interest rates and new taxes, taxpayers and their advisors must quickly sharpen tax and financial skills in the new year for the challenging times ahead, says Knowledge Bureau Founder and President Evelyn Jacks, best-selling tax financial author and award-winning educator.  The good news?  Most people can find new tax relief due to a host of changes, together with highly educated specialists who can help.

With the late introduction of the Fall Economic Report, Canadian taxpayers and their advisors will face further uncertainty in planning their financial affairs to include the myriad of tax changes the government has introduced publicly recently.  Bill C59 was introduced on November 21, 2023 to encompass some of these provisions and this was submitted on November 30 for First Reading.  The bill will not likely pass before the Christmas break.  Specifics of concern to individuals and their advisors are summarized below:

Canadians of working age who live in poverty because of a disability have been awaiting the Canada Disability Benefit since 2020.  The Canada Disability Benefit Act was passed into law on June 22, 2023 and the next step to income is a consultation period that ends December 21. The eight topics are the government wants to know more about describes what’s in the legislation and provides an overview of what disabled people and their families can expect from the benefit.

All the updated knowledge and resources a professional personal tax specialist needs plus expert instruction is what the Knowledge Bureau’s Advanced T1 Tax Update is about,  and it’s coming your way in one of three delivery choices:  a national virtual event on January 17, 2024 or two in-person events:  January 24 at the Pearson Convention Centre in Toronto or January 26 at the Sandman Airport Hotel in Calgary.  Registration is required by December 15 for receipt of all five components of this comprehensive experience including a hard copy desk top reference and Evergreen Explanatory Notes, which you’ll cherish throughout tax season:

The Underused Housing Tax has been making headlines, most recently with the last-minute decision on October 31 to extend the filing deadline to April 30, 2024. It’s a move that 85% of tax and financial advisors said they agreed with in responding to our November poll question. However, it’s a nuanced issue that was addressed in many insightful comments. Check them out!