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:

On  December 11, the federal government announced it will introduce the new Canada Dental Care Plan (CDCP) to seniors age 87 and above in December 2023.  Access for others will begin over the 6 months ending in June 2024.  In all cases, eligible claimants must not have access to a private dental care plan, and 2022 tax returns must have been filed to meet income testing.  Tax specialists should contact our oldest seniors immediately to discuss eligibility and in addition, be mindful of changes to T4 and T4A slip reporting as well.  Here are the details:

Did you know that of the over 31.5 returns processed in 2023 for the 2022 tax year, close to 7.4million of these returns had a balanced owing for a grand total of almost $57 Billion?  That’s an average amount owing per return of $7,729.  Owing CRA money can be very expensive – and the interest rate on overdue accounts is expected to rise in January to 10%.   Here is how they are calculated and what you can do to free up cash flow ahead of this year’s holiday season by managing the spend to the CRA:

Beginning December 12, 2023 the government is asking for feedback until February 9, 2024 in preparation for the 2024 Federal Budget. This is your opportunity to make a difference and share your ideas and priorities on how the government can build an economy that works for everyone. What is most important to you? What challenges do you see ahead? Join the conversation by taking the questionnaire or submit a more detailed submission.

Do you want to be part of a transformative change in the financial services industry in 2024!  Make a difference while you differentiate with new credentials and a collaborative approach to leadership in building your practice and a natural referral network, too, with the Real Wealth Management™ Designation Program. The RWM™ approaches conversations with clients on a deeper level while following a compliant framework that goes beyond KYC and KYP – all to enable greater financial piece of mind. Now until December 15 you can save $200 on tuition!

Did you know that Knowledge Bureau is a private, educational institution certified by Employment and Social Development Canada (ESDC) to provide courses that develop or improve skills for those working in the tax, bookkeeping, accounting, and financial services industries? What this also means is that Knowledge Bureau students who have paid 2023 tuition fees in excess of $100 qualify for the tuition fee amount, and the T2202 tax slips to claim this are now available in your Virtual Campus. Here’s how to claim them:

Things are changing quickly in the tax world and we have a great way to stay on top the critical changes to tax planning and new burdens of proof with the new CE Savvy™ Collection – Tax Audit Defence Strategies.  You can earn 5, 15, or 30 CE Credits before year end, too. Here’s why professional advisors cannot miss this opportunity to come up to speed with the complex rules from the March 28, 2023 budget, the August 4, 2023 Draft Legislation and more in preparation for the upcoming tax season.