Finance Canada Drops Draft Legislation August 15

All professional tax practitioners, financial advisors should take note of an important mid-summer release of draft legislation to implement some of the proposals from the November 2024 Fall Economic Statement, the April 2024 Budget, the EIFEL rules announced on August 12, 2024, and rules relating to passive income of foreign affiliates announced in the 2022 federal budget.  This draft legislation also introduces more modifications to new trust filing requirements. Brief highlights appear below;  technical details will be discussed in the September 17 and November 5 CE Summits and Knowledge Bureau’s certificate course on T3 Filings. 

With the recent spike in inflation, planners need to re-evaluate their financial plans.  I’ve previously written about revisiting the long-term mortgage amortization projections with rising interest rates and the impact of rising costs to cash flow (With Mortgage Rates Rising, Revisit Financial Plans).

Nominate someone you know for the DAC New Advisor Award today! 

Estate Planning: Finding Financial Peace of Mind Despite Next Gen Despair

Gender Inclusion: Acknowledging and Servicing Transgender, Non-Binary and LGBTQ2+ People. It has never been more apparent than now that gender norms are changing, and these changes are here to stay.

Good news! CRA is reviewing previously denied claims for the Disability Tax Credit (DTC) under expanded eligibility criteria available for the 2021 tax filing year. 

Preserving capital in the current environment includes three goals: managing the financial triggers caused by the current environment, understanding the tax-efficient "wealth horizon", and preserving income-producing capital in advance of transition events: retirement and death of a taxpayer.