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. 

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As Canadians face both soaring temperatures and a summer of rising prices, there is another hot issue emerging: tax debt. Of the 28 million returns filed as of June 13, just over 7 million of them had an average tax debt $6,739.  With the proprietorship deadline of June 15 ending last week, this tax debt – and the number who owe it could increase. It’s the first type of debt to pay attention to.  Here’s why:

Taxpayers in Canada who have a severe and prolonged impairment of physical or mental function will qualify for the disability amount if they get their doctor (or nurse practitioner) to attest to that on Form T2201 Disability Tax Credit Certificate, sent the completed form to CRA and CRA approves the claim based on the T2201. The April 2022 Federal Budget introduced a number of changes to the criteria for eligibility for the credit, but these will only be available once the legislation (included in Bill C-19) receives Royal Assent. This is imminent at the time of writing. Here are the details:

After spending close to $12 million to reform government processes and rollout new federal disability programming, the government reintroduced legislation to create the New Canada Disability Benefit (CDB) on June 2.  It is meant for those under age 65, but it is unclear when this new income-tested source will actually be in the hands of the disabled and in what amounts. Here is what we know so far:

There’s still time to join us today, June 23 at 12 PM CST/ 1:00 PM EST to spend some time discussing how professional advisors and charity professionals  can work collaboratively to enhance the client/donor experience.  Lead by panelists MFA-P™ alumni Candice Jay and Aneil Gokhale, this MFA-P™ Discovery Seminar is one you don’t want to miss!  RSVP now!

Most advisors know how difficult it is to discuss financial matters when there are other issues in the family:  conflict, disability or financial worry. Imagine this barrier:  how to unlock the deep moral injury young people feel about the institutional and generational betrayal of their mindset; in particular, their significant distress about the enormous existential threat they face in their future.  Learn more about why this matters in tax and financial planning with Dr. Britt Wray at DAC Acuity 2022 in Niagara Falls, October 16-18.