Knowledge Bureau Poll: Tax Cut Doesn’t Cut It!

The Notice of Ways and Means Motion was released on May 27, but the 1% tax rate cut going into effect on July 1, didn’t cut it with Knowledge Bureau Report readers who responded to our May Poll.  A decisive 90% of respondents said “No” when asked: does the new government’s promise to cut the lowest personal income tax rate by 1% to 14%, (14.5% in 2025) go far enough to help Canadians impacted by high costs?  Here were their comments and suggested alternatives based on real life experiences with the after-tax income their struggling clients are left with:

According to a recently released study by Statistics Canada, people who are socially isolated are more likely to experience a poor quality of life, morbidity and mortality. Loss of hearing has a big part to play in creating that feeling of isolation, particularly for women. Tax and financial advisors can directly help address the issues with some year-end tax planning.

Executors will want to review donations strategies carefully before year end if managing the final affairs of someone who passed away in 2016.  There are a series of new rules to be aware of.

If making an RESP contribution is part of your year-end tax planning discussions, be sure to understand the expensive tax consequences of an excess contribution. A subscriber who contributes more than the limits allow will face a penalty tax of 1% per month on the excess amount, imposed under the Income Tax Act S. 204.91(1).

Knowledge is power. That phrase reflects not only one of the messages in CRA’s financial literacy tips, but also the reality behind one of the recently announced changes to its national processing operations. The changes reflect a reality for many “old economy” workplaces: the new digital economy is changing workforces and the way end users prefer to transact with a hybrid of digital and human services.

Income earned by the estate during a tax year must be reported as a T3 return. Now, professionals can learn how to do so with confidence and competence, with Knowledge Bureau’s newest certificate course,  T3 Basic Tax Preparation.

Mark your calendar for Knowledge Bureau’s annual, comprehensive personal tax update, being delivered in our Distinguished Advisor Workshop (DAW) series, January 17-25, 2017. The DAW winter session will take place in six cities, including new events in Edmonton and Ottawa. This day-long certificate workshop will “shake out the cobwebs” for new and returning tax practitioners in tax, bookkeeping, accounting and financial services offices.