The CRA TSlip Saga: An Update

This tax season has been particularly challenging for both taxpayers and tax professionals. The Canada Revenue Agency (CRA) provides tax information slips—such as T3, T4, T5, and their variations—through secure online portals: My Account and Represent a Client (RAC). This year, there were lots of problems with these portals, and now, it appears, CRA is not being quite transparent about when the slips were actually visible to clients and that doesn’t seem fair. Here’s an update on where we stand now.

It’s official now:  Finance Canada confirmed on December 30 that restricted fixed costs for certain auto expenses claimed by business owners and employed commission sales people, which haven’t changed in some time; won’t be revised for 2017 either.

Most respondents to Knowledge Bureau’s final poll of 2016 answered yes when asked, “Do you think the 2017 federal budget will increase capital gains income inclusion rates to raise tax dollars?” We’ll have to wait for the details of the budget, expected early in the new year, to see what actually happens. Only 41% said no to the question.

President-elect Donald Trump will soon celebrate his inauguration and with his ascent to power, he has promised to reduce marginal tax rates, cut taxes, and allow businesses to expense new investments rather than deducting interest costs.  In Canada, meanwhile, we await a new federal budget.  What happens in the U.S., however, is relevant and could shape future taxation policies in Canada.

Did you know that last tax filing season, the average tax refund was just under $1,800, ($1740 actually) or about $150 a month?  That’s a lot of money to give to the government on an interest-free basis.  Make a new year’s resolution for 2017:  pay only the correct taxes owing and invest the rest.

If you’re a tax professional, you can’t afford to miss this:  Knowledge Bureau’s Annual Advanced Personal Tax Update is coming soon, January 17-25, 2017, in six cities across Canada. Early-registration savings end January 10. Reserve now to guarantee your spot and do your pre-reading for this comprehensive certificate workshop featuring 10 CE-CPD credits.

Payroll must be right and it must be on time for two reasons:  to keep your employees and to keep out of expensive and time-consuming audits from CRA.  That’s way it can be a sound investment for any small business to insist on professional certification in advanced payroll management.