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. 

Looking for other ways to mix and mingle with DAC attendees, trade best practices, and have some serious fun in Banff? Check out these additional activities and sign up soon through the DAC Interactive Agenda, as spaces are limited! If you haven’t secured your seat out the conference, be sure to do so by the September 30 early-bird deadline for best tuition rates!

It’s back to tax school time and that means shoring up on tax knowledge for the 2023-2024 tax filing seasons, but also to mark your calendar for important milestones to meet CRA fall filing requirements.  To help, here are the Knowledge Bureau Report’s Fall Financial Calendar Checklist:

No rest for tax and financial professionals, it seems.  Between two long weekends, August 4 and September 8 a giant package of draft tax legislation (365 pages) and explanatory notes (459 pages) must be read, deciphered and reviewed to provide commentary.  It’s a very tight window considering the significance of the provisions, which reform the tax system for employees, employers, high income earners, those embarking on intergenerational transfers, investors in the clean economy and mineral exploration and those who try to circumvent the intent of the law.

The cost of living adjustment for the Canada Child Benefit, along with other federal benefits and credits, increased by 6.3% in July, bringing a welcome raise to families with children who are navigating inflation-fuelled price increases, especially for back-to-school supplies.   A mid-summer plan to improve the CCB for next year should however begin now.  Here’s what you need to know:

CRA is enhancing the questions they will ask when it comes time for a tax audit. In July, the department released 5 forms that require detailed information.  These will be covered in more detail in the September 20 CE Summit; however, here is an overview of what’s in each form.  Tax and accounting services specialists will want to add these forms to their interview checklists with every client who fits the profile for these requests:

A report updated on July 31 from Statistics Canada provides new data on who is retiring in Canada and when.  Is there in fact a retirement planning crisis in Canada?   Who is experiencing it?  You might be surprised at these new facts.  You may also want to weigh in on your observations on August 16 at noon when we present a national Meeting of the Minds with the Society of RWMs™.  Check out the stats and the pointed questions we will be asking our participants to weigh in on August.  Your opinion matters. Please join us.