Tax Pros: Canada’s Tax System Has Taken a Big Hit

Canada’s tax and financial pros weighed in enthusiastically on last month’s two-part Knowledge Bureau Report Opinion Poll in which we asked: "Do you believe Canada’s tax system based on self-assessment, has suffered under recent changes at CRA and by Finance Canada?" 71% said yes. Part 2 was this question: "If so, what is the one wish you have for tax reform?" The responses were very interesting:

After decades saving for retirement, transitioning to spending down savings can be a huge shift in mentality for retirees.  Additionally, one of the biggest surprises that new retirees often face is how their taxes change upon leaving the workforce. For the average worker who has spent his or her adult life paying ordinary income tax via payroll withholdings, the shift to flat withholding rates combined with differing rules depending on the source of their income can leave many clients with an unexpected tax bill after they retire.

Were you born before July 1, 1947?  It’s an important question to ask all your senior clients because they are in for a raise in their OAS benefits this year.  The government announced an increase to Old Age Security by 10% for seniors over age 74, starting with the July 2022 benefit year.  Eligibility is based on several criteria including individual net income on the 2021 tax return.   Here are some additional details about the program, excerpted from Knowledge Bureau’s Advanced Retirement and Estate Planning Course, now available.

The latest tax season filing statistics from CRA show that tax refunds have risen even higher now that more Canadians have filed. Out of the 27.1 million filed, 15,345, 235 refunds were issued, averaging $1,994. That’s a lot of taxpayer money being held onto by the CRA, and an important opportunity for tax professionals to focus on tax-efficiency to reduce these withholdings now!  Further, only 7% of returns are now being filed on paper.  Here are more interesting tax facts:

The 2022 Federal Budget announced that, beginning in 2022, eligible workers will be able to deduct up to $4,000 per year for eligible expenses.  This provision is part of the April 7, 2022 Federal Budget Bill C-19, tabled on April 28.   Are you speaking to your clients about saving their receipts now?  Here are details you need to share:

Finally – it’s live and in person – Canada’s Top Edutainment Event!  Virtual DAC has been fun, but we’re so excited to be seeing you again October 16-18 in Niagara Falls for this year’s DAC Acuity Conference! Past attendees know that DAC is an edutainment experience like no other, so we’re kicking it off early.  Join us for the weekend for wine tasting tours, golf and world class dining amongst other great events before the conference starts.  Sign up now for best registration, flight and hotel rates and then experience one of the Seven Wonders of the World -  all of Niagara’s hidden gems together with new networking opportunities with your peers.  Here’s how:

You don’t want to miss the Ottawa Bureau Chief of the Globe and Mail, Mr. Robert Fife at the DAC Conference October 16-18 in Niagara Falls. Robert will be speaking to the topic: “Help Wanted – Transformative Leadership for Canada”. Enrol by May 31 for early-bird tuition savings, to experience the thought leadership of Robert Fife and more  - live and in person!