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.

Now is the right time to enhance your credentials and train your teams for the upcoming tax season, and our Black Friday Sale is here to get you started. This week only: save 55% on tuition when you enrol in any two courses of your choice for $995.

This just in:  a post-secondary education can bring on joy. A 2018 National Graduates Survey released by Statistics Canada on November 17 surveyed 2015 post-secondary graduates in Canada. It reports that the majority of graduates were satisfied with their jobs, felt qualified for them and 91% were working full time. 

Just released: the agenda for the January 20 Advanced T1 Tax Updated and Virtual CE Summit.  This is your opportunity to attend Canada’s most comprehensive T1 filing course from Canadian tax experts Evelyn Jacks, Larry Frostiak, Dr. Dean Smith and Alan Rowell; this time addressing a national audience in this year’s virtual webinar format. RSVP now: early-bird savings end January 15 and there is special pricing for firms who wish to enrol teams.

It’s hard to believe but back in 1917 the average taxpayer paid $14 and personal income tax was 2.6% of all federal government revenues.  But in 2020-2021, the $165 billion the government expects to collect from personal income taxes represents a whopping 57% of all budgetary revenues. This is a significant increase in reliance on the fruits of Canadians’ labour, even when compared to modern standards:  51% in 2017, for example. This makes the role of financial intermediaries – tax, accounting, bookkeeping, payroll and financial advisors – more important this year than ever before.  There are many places to look for savings before year-end.  

The 2021 payroll formulas were released this week and it turns out Knowledge Bureau’s estimations of the official tax brackets were very accurate: a one dollar discrepancy has been noted on the information we reported to you earlier. However, statutory payroll costs are adding significantly to the burdens small business owners face, according to a new report, which also recommends that ancient tax-free benefits be indexed.  

There are a number of usual suspects in the missed claims department, especially for do-it-yourself clients who now wish to hand over their tax and financial advisory work to professionals.  This is a great opportunity for professionals to find new money for their clients with obscure tax provisions like the GST/HST Rebate.