Bill C-31: Royal Asset and New CRA Powers Could Come Soon

Changes are coming to the Income Tax Act and both you and your clients will all be affected with new tax risks including longer tax audits. Bill C-31, which passed second reading in the House of Commons on June 3 and is now at committee stage, contains elements of previous Federal Budgets that will expand the CRA’s compliance and enforcement powers. Here’s what you need to know and pass along to your clients:

The March 21, 2013 Budget is proposing major changes to the taxation of trusts in Canada, which will have significant family succession planning implications. Here in the first of two articles, Greer Jacks reviews existing rules, which every tax and financial professional may wish to be aware of before the rules are changed in order to participate in fruitful consultations on the matter.

Riding the bus or subway? Remind all family members to keep receipts because you may be able to make a claim on your tax return for the costs. 

As a result of reverting from the HST back to the GST and PST system in BC, the provincial HST Credit has been abolished.

Starting in May 2013, CRA will again begin its Processing Review Program, which initiates requests for supporting documentation for claims made on tax returns.

Expenses for the care of dependent children who are under the age of 16 (at any time of the year) or who are physically or mentally infirm may be claimed on your tax return.

Investment Advisors: Here's a great client gift for April – buy 3 books, get 1 free! Jacks on Tax will help your clients save time and money by understanding their returns and taking better control of their financial affairs. It’s a book for everyone because its premise is simple: a more informed taxpayer, working with a collaborative professional community, will get more out of the tax system now and in the future.