Seniors Targeted? The Tax Audits Begin

The Canada Revenue Agency (CRA) routinely reviews or audits tax filings, including personal, trust, corporate, and HST returns. The most common types of reviews that focus on personal tax returns include, but are not limited to, Pre-Assessment Reviews, Processing Reviews, and the Matching Program. This year there is a new focus: the Multigenerational Home Renovation Tax Credit introduced to help families better care for their elders. But claiming it, like other tax benefits, comes with a tax snare. Read on to learn more.

There’s lots to know about the new CCR – Canada Carbon Rebate.  The first payment for 2024-25 under this new label has been increased in some provinces but decreased in others.  The former Climate Action Incentive Payment (CAIP) is paid quarterly, and the new CCR will be too; but did you know that to receive the first payment on April 15, 2024 tax returns for both spouses must be filed by March 15? Here are the new amounts for April 2024 to January 2025 and some tax tips to observe too.

February 19 is the first day CRA accepted 2023 tax returns to begin the 2024 tax filing season.   How much will the average tax refund be?  How must will the average taxes payable be?  How many tax returns will be filed?  How many will be nil returns?  A review of those final filing stats for 2022 can help to anticipate what the 2024 tax season will look like.  Here is some tax filing trivia to kick off tax season 2024. 

There are lots of tax details around the carbon taxes paid by Canadians and their carbon tax rebates, which now will have a third name since 2018.  The Canada Carbon Rebate (CCR) will help offset the increased costs of fuel at the pumps but, heating costs have also increased due to the new carbon tax, on which the GST/HST is also charged – a tax on tax.  Residency is also required to access the CCR, which means new forms for newcomers.  Check it out:  

A trust, unlike a person or a corporation, is not a legal entity... A trust is simply a legal  relationship between the trustee, who holds legal title to the subject property of the trust and the beneficiaries, who hold beneficial title to that subject property. However, there is one exception to the general rule: a trust is a legal entity for tax purposes.  Subsection 104(2) of the Income Tax Act (Canada) specifically provides that a trust is an individual for tax purposes and, thus, is considered a separate taxpayer.

Knowledge Bureau has a new CE Solution for financial advisors and you can even take one of them for free.  But that’s not the main reason you’ll want to check out our CE Savvy™ Micro-Course Collections! The education is fantastic and the new learning platform is amazing.  Firms are signing up, and independent advisors, too.  Here’s why Tony Mahabir, MBA, CMC, RWM, CIM, RRC, CFP, FP Canada Fellow and President of the CANFIN Group of Companies and is so enthused:  

Here they are:  the big conversation starters for your clients this month – something new for every demographic!  Take the time to be proactive, especially because this year is a Leap Year and most important, because CRA starts processing the 2023 T1 returns this month!  Tax season 2024, in other words, is officially underway!