Wildfires: Apply for Taxpayer Relief Provisions

It may not be the first concern, but Canadians affected by wildfires may worry at some point about the tax consequences of lost records or missed filing deadlines – the next one on June 16 for those filing T1 returns with proprietorship income. Fortunately, the CRA offers Taxpayer Relief Provisions when there are circumstances beyond a taxpayer’s control, including natural disasters, serious illness or death in the family, or errors made by the CRA, which may trigger penalties and interest due to late or incomplete tax filings. Here’s what you need to know.

Watch what you say when it comes to transfer pricing, oral interviews with auditors, and related tax planning.  These distinct topics came face to face in the dramatic court saga, which was Cameco Corporation and Her Majesty the Queen (“Cameco”).

Semi-annual payroll changes are implemented when announcements are made after January 1 that affect payroll deductions for income tax and statutory deductions.  This year, no federal tax changes have been announced that affect payroll and only one province has announced a change that will affect provincial tax calculations.

Congratulations tax pros!  You got through the June 15 tax filing deadline for proprietorships but there are a few more important deadlines to note, one for tomorrow June 17. 

Now seeking nominations for the New Advisor Award – application deadline September 1, 2021 The DAC Young Advisor Award recognizes the next generation and their contributions to excellence in the field. 

As of June 1, eligibility for a new mortgage (or renewals with a new lender)  will depend on a new stress test, and specifically, whether buyers can pay their mortgage if interest rates go up to 5.25%. This will be trying for all buyers, not just first-time buyers. However, if first-time buyers can’t meet the test, the First-Time Home Buyer Incentive may come to the rescue. Tax and financial advisors need to know the details to advise on the pros and cons and do the “homebuyer’s math” to make sound recommendations.  

In 2021, the average Canadian family will earn $124,659 and pay an average of 39.1% of this or $48,757 in all taxes. So, if you are feeling the pinch, you are not alone. The Fraser Institute found that in 2021 that day occurred on May 24, the May long weekend, a week later than last year’s May 17. But they warn the future “Balanced Budget Tax Freedom Day” will be much later.