Knowledge Bureau Poll: Tax Cut Doesn’t Cut It!

The Notice of Ways and Means Motion was released on May 27, but the 1% tax rate cut going into effect on July 1, didn’t cut it with Knowledge Bureau Report readers who responded to our May Poll.  A decisive 90% of respondents said “No” when asked: does the new government’s promise to cut the lowest personal income tax rate by 1% to 14%, (14.5% in 2025) go far enough to help Canadians impacted by high costs?  Here were their comments and suggested alternatives based on real life experiences with the after-tax income their struggling clients are left with:

There are 10 key tax filing milestones coming right up in February and March.  Have you discussed them with your clients? Check out the Knowledge Bureau Professional Tax Filing Matrix and nudge your clients along to book appointments in advance of what is sure to be a very busy tax season. Plus, there is still time to train new and returning staff on the changes to the 2019 tax return.

TOSI, a most controversial provision introduced on July 17, 2017 is now in its second reporting year. As many companies are  preparing T5 slips, dividends distributed from certain professional corporations must be properly reported for non-active members of the family. Tax specialists will want to discuss where the onus of proof lies for proper reporting and brush up on the complex rules and their impact using tax form T120.

The home is the most significant asset for many Canadian households. It can bolster personal net worth, and once paid off it reduces future costs of living. Before tax season starts and the RRSP season ends, it’s important to bring this conversation to the forefront for clients like Millennials and Boomers, in particular. Learn why in the first of this three-part article:

Best-selling author Doug Nelson, CFP, CLU, MFA™, RWM™, CIM, is a 27-year veteran of the financial services industry in Canada with a singular vision for his readers:  Don’t just “do” retirement…instead “Master Your Retirement”!  And he has some upbeat advice for those still worried about the one big question all retirees have. 

The 2020s are starting out in tumultuous fashion. The economic impact of ongoing concerns like climate change, global pandemics, global political risks and local strike actions of various kinds all have impact on financial decision-making. Issues that are much different than decades past require bold thought and bright insights.  For these reasons, Canada’s premiere advisors won’t want to miss DAC Acuity 2020, October 28-30 in Niagara Falls. Early registration discounts end February 15.

We know you are about to get really busy, but that’s no reason to stop honing your skills as a multi-dimensional tax specialist. This week, take advantage of a sweet Valentine’s offer to pursue your Certified Tax Practitioner Diploma . . .plus you can start whenever you want. That’s right, your study plan is completely customizable!