Mid-Summer Reviews: When to Collect OAS and CPP

Did you know that 61% of Canadians are afraid of running out of money during retirement? According to a new CPP Investments survey, that fear is widespread. Yet surprisingly few people understand even the basics of public pension planning. For example, Canadians are not obliged to begin OAS or CPP at age 65. By delaying, they can significantly boost after-tax income and improve retirement security.

Last summer, suspected “high risk” tax preparers were under the microscope by the CRA for submitting fake CEWS and CERS claims on behalf of approximately 2000 business clients.  The gross negligence penalties alone amounted to $10 Million; this aside from the clawback of $25 Million in benefits paid. While these cases are in the minority – only 300 cases audited so far - they shed light on several things: once selected for audit, the burden of proof is always on the taxpayer, the penalties for dealing with high risk preparers will be huge, and from a client’s perspective, it pays to put your faith in a highly qualified tax professional.

The burden of proof for accurate tax filings is always on the taxpayer, but in return, the taxpayer has several basic tax filing rights enshrined in the sixteen “Taxpayer’s Bill of Rights, ” together with five additional rights for small business. Now there is an additional tool when CRA fails to provide you with your rights to accurate and timely information: Form RC193 Service Feedback Form.

Vexxit’s online platform brings clients to you. The way we do business has changed these last few years. Remote and hybrid have become the new norm, with professionals trading boardrooms for virtual meetings and networking events for social media introductions. Vexxit has taken this new way of doing business and amplified it, giving accountants a digital platform to offer their services and access customers who need them.

International tax law is very complex and border-hopping can be expensive from a tax point of view.  Newcomers to Canada and immigrants especially need to pay attention, but so do those residents with offshore assets. Be sure you are working with a Tax Services Specialist™ who has graduated from Knowledge Bureau’s Cross Border Taxation Course.

It’s tricky to find silver linings in 2023, as the cost of everything is rising, with the Consumer Price Index (CPI) sitting at 6.3%. Food, fuel and general goods are increasing in price, and unfortunately so is the cost of running a business. However, some businesses are finding that they are thriving in the current environment. For example, some advisors are finding that their businesses are still growing, thanks in large part to high-net-worth clients seeking better service.

Canada has a new tax form due on April 30 and it comes with expensive penalties.  Canada Revenue Agency has just released new form UHT-2900 Underused Housing Tax Return and Election Form to be used by non-resident owners of residential property in Canada.  The new underused housing tax is 1% of the value of any vacant or underuse residential property owned by a non-resident individual or corporation.