Caught in the Crosshairs of CRA: What Tax Reform Could Mean for Advisors

The landscape of Canadian tax policy is shifting, and advisors need to be ready for the impact. At the CE Savvy Summit on September 17, 2025, the Society of RWM Round Table Think Tank will gather for a dynamic discussion: Caught in the Crosshairs of CRA. This interactive session will bring together financial professionals to evaluate the promises of a new government to review the corporate tax system, eliminate loopholes, and strengthen CRA enforcement through technology.

Oct. 1 was National Seniors Day in Canada and the treatment of Canada's seniors is on the mind of Diana Juricevic,  a member of the British Columbia Human Rights Tribunal and a speaker at this year's Distinguished Advisor Conference. Elder abuse ó be it physical or financial ó is a human rights issue for a number of reasons, says the Ontario native. "One, seniors are entitled to respect,î Juricevic explains. "Also, seniors have the right to live in safety and security and, thirdly, seniors have the right to be free from economic and financial abuse. Their money and property belong to them ó not to their families or administrators.î Juricevic has spent a career thinking about human rights and how those rights can best be safeguarded. A lawyer by profession, she was a member of the defense team for General Ante Gotovina, who was being tried in the International Criminal Tribunal for the former Yugoslavia. In 2010, she worked in the Extraordinary Courts of Cambodia as it dealt with the atrocities committed by the Khmer Rouge in the later part of the 1970s. Now in Vancouver as part of B.C.'s Human Rights Tribunal, she sees cases of elder abuse ó and it raises concerns. Certainly, there is a growing awareness of elder abuse ó and for good reason. According to Statistics Canada's report The Canadian Population in 2011: Age and Sex, the number of seniors in Canada is increasing. From 2006 to 2011, says the report, the number of seniors aged 65 and over increased 14.1% to close to 5million. In 2011, seniors accounted for 14.8% of the population, up from 13.7% five years earlier ó a record high. But growing even faster is the number of Canadians aged 60-65. In that time period, their numbers increased by 29.1%. Says the report: "This suggests that population aging will accelerate in Canada in the coming years, as the large baby boom generation, those born between 1946 and 1965, reaches 65 years old.î There are indications that incidence of elder abuse is growing in tandem with the aging population. Another StatsCan report, Family violence in Canada: A statistical profile, 2010, notes that, compared to other age groups, seniors are at the lowest risk of violence ó but that doesn't make them free of violence. "Overall,î says the report, "seniors were most at risk from friends or acquaintances (73 victims per 100,000 seniors), followed by family members (61 victims per 100,000) and strangers (51 victims per 100,000). Grown children were most often identified as the perpetrator of family violence against seniors.î Financial abuse is also growing. "Financial abuse occurs whenever someone gains financial benefit at the expense of an older adult without his or her consent or lawful authority,î explains Juricevic. "This may include failing to use the assets of an older adult to support his or her own welfare, as well as other ways of misappropriating money or property.î At this year's Distinguished Advisor Conference, "Navigation: Charting a New Courseî ó to be held Nov. 11-14 in Naples, Fla. ó Juricevic will discuss the signs of elder abuse, as well as other human rights violations, and suggest strategies advisors can use in their practices when working with vulnerable groups. She takes to the stage Tuesday, Nov. 13. "Everyone has the right to live with dignity and respect in Canada,î she concludes. "We have a responsibility to ensure that all Canadians can benefit from the services that are available in our country ó and especially our seniors and those who are most vulnerable in our society.î  

Recent economic data tell the same story: Canada has hit what TD Bank Group economists call a "soft patch.î Indications are Canada's economic performance will remain "sub-parî for the rest of 2012. Certainly Statistics Canada's job vacancy numbers are nothing to crow about. From June 2011 to June 2012, the number of job vacancies increased by 20,000 to 263,000 vacancies. "There were 5.3 unemployed people for every job vacancy,î reports StatsCan, "down from 5.8 in June 2011.î There is growth, but it is sub-par. StatsCan also measures the national job vacancy rate among Canadian businesses. In June, it was 1.8%, up slightly from 1.7% a year ago. "Higher job vacancy rates are often associated with periods of economic growth,î writes StatsCan "while lower rates may be associated with periods of slower growth or economic contraction.î Declining house sales are also putting a damper on growth. According to the Canadian Real Estate Association (CREA), house sales were down 5.8% in August from July, the fifth straight monthly decline. Actual (not seasonally adjusted) activity stood 8.9% below levels in August 2011. Prices, too, have cooled. CREA tells us the national average home price was up a mere 0.3% on a year-over-year basis in August. As Bank of Montreal economist Robert Kavcic points out, "Canada's market has quietly built up an above-normal 6.5 months' worth [of inventory] ó far from saturated, but certainly keeping the bidding wars at bay.î That puts a chill on Canada's economic recovery. According to TD's quarterly economic forecast, "Canadian Outlook: Caught in the middle,î Canadian households have begun the long process of reining in their borrowing. "Even with this moderation,î says the forecast, "combined growth in mortgage and consumer debt has continued to outstrip that of incomeÖ. Some cooling off in formerly-red-hot housing markets is expected to weigh on consumers' appetite for more credit and spending over the forecast period.î The result: a sub-par pace of consumer spending. On the plus side, the consumer price index (CPI) rose 1.2% in the 12 months to August, following a 1.3% gain in July. According to StatsCan, higher prices for the purchase of passenger vehicles, gasoline, meat and food purchased from restaurants were major factors in the year-over-year increase. Still, that keeps inflation well within the Bank of Canada's desired 2% target range, probably keeping the spectre of higher interest rates at bay. "With no engine firing on all cylinders,î says the TD's forecast, "economic growth is being held to a meek sub-2% rate and the jobless rate is stuck above 7%. By early 2013, we suspect that global headwinds will have dissipated enough to spur stronger Canadian exports and entice cash-flush businesses to loosen their purse strings ó pulling real GDP growth back above 2% and pushing the jobless rate down modestly.î Additional Educational Resources: Elements of Real Wealth Management course and Financial Recovery in a Fragile World book.      

Disability, physical and mental, all too often comes with age. And as the baby boomers get older ó in 2016, 16% of Canadians will be over the age of 65 ó the economic and social costs of disability will climb, for families and communities. According to Statistics Canada's Participation and Activity Limitation Survey,  43.5% of people aged 65 to 74 have a mental or physical disability while 56.3% of people 75 and over are disabled. Dementia is of particular concern. Currently, about one in 11 Canadians over the age of 65 lives with dementia. Within a generation, says the Canadian Study of Health and Aging (CSHA), that number will double to two in 11. CSHA and the Alzheimer Society of Canada  have calculated the economic costs of this changing demographic. Over the next 25 years, the cumulative economic cost of dementia, which includes Alzheimer's Disease, the most common form of dementia,  is expected to exceed $872 billion. The number of family care-giving hours will triple to 756 million hours in 2038 from 259 million hours in 2010. Dementia hits women particularly hard: 72% of all Alzheimer's cases and 62% of all dementia cases are female. According to Statistics Canada 2008 Elder Care: What we know today, women have traditionally been the caregivers. That means the burden of care will need to shift to others in the family or the community. This is a devastating and significant issue and the federal government has started to recognize the costs to families of dealing with vulnerable family members. In the 2011 federal budget it introduced the Family Caregiver Amount. If you care for a disabled dependant, when you prepare your 2012 taxes the following non-refundable tax credits will increase by $2,000: Spousal amount; Amount for eligible child (claimed by a single parent for one child); Amount for dependants under 18; Amount for infirm dependants 18 and over; Caregiver amount. Granted, the value of the additional amount is $300, a small reward given the sacrifices made when caring for a vulnerable person. Nonetheless, that $300 will help pay for some much-needed respite. Also, if you qualify for the credit and pay your income taxes on a quarterly basis, you may wish to change your withholding tax rate for the final quarter of the year or reduce your quarterly instalment payments accordingly. It's Your Money. Your Life. Caring for the vulnerable is a community issue. We need to prepare for that with our precious resources of time and money, because it's an honor and a privilege to give back with compassion and empathy to those who have done so much for us. Evelyn Jacks is president of Knowledge Bureau, which offers bookkeeping and income tax preparation courses within its curriculum. You can also offer financial education books to your clients or other family members. For more information, click here.   Additional Educational Resources: Introduction to Personal Tax Preparation Services and EverGreen Explanatory Notes.  

Quebec is taking a page from France's book. To battle deficits and increase revenues, recently elected leaders in France and Quebec have announced intentions to deliver tax hikes to higher-income residents. Earlier this month, France's new Socialist president, FranÁois Hollande, proposed a 75% income tax on the portion of an individual's income that exceeds €1 million (C$1.2 million) a year. More recently, Quebec's Parti Québécois premier, Pauline Marois, made good on an election promise to introduce provincial tax brackets for incomes over $130,000 and over $250,000, with provincial tax rates expected to be 28% and 31% respectively. That is on top of federal income taxes. Add in the maximum federal tax and Quebecers in the $130,000 to $250,000 tax bracket would see their marginal tax rate rise to 52%; for those earning more than $250,000 it would be 55%. The majority of taxpayers seem content with these new plans. According to the New York Times,  half the nation's households earn less than €19,000 a year; only about 10% of households earn more than €60,000 annually. In Quebec, according to The Globe and Mail, Ministry of Finance figures show that in 2010, slightly more than 102,000 people earned between $130,000 and $250,000 a year; another 38,000 earned more than $250,000 a year. The wealthy, however, are clearly unimpressed. The United Arab Emirates' English-language The National.ae has reported that Bernard Arnault, the owner of the LVMH luxury goods group and the wealthiest person in France, has since applied for citizenship of neighbouring Belgium, where the fiscal regime is more agreeable. Many more are concerned that France's aggressive tax plan will scare away investment and jobs, hurting the already-fragile economy. Another top earner in France described the 75% tax to the The National as "morally and politically legitimate but economically stupid.î Those concerns are mirrored in Quebec. "Anything above 50% means that you're really working for the government more than yourself," Jamie Golombek, managing director of tax and estate planning at CIBC Private Wealth Management, told Montreal's The Gazette. "It's a huge barrier." Hollande estimates he must create €30 billion in new taxes and spending cuts to meet his target of reducing the public deficit to 3% of GDP by the end of next year. For Marois, the challenge is replacing the $850 million lost when the government eliminates Quebec's health tax. As these controversial proposal comes closer to reality, the world will be watching to see how both France and Quebec are affected and what the wealthy choose to do. Such policies may help win an election, but only time will tell if taxing "les richesî will steer an economy out of the sewer. Additional Educational Resource: Distinguished Advisor Conference    

Respected author and investment guru Gordon Pape  is no "gold bugî but, he says, now is the time to buy gold. That's because Pape, a keynote speaker at the upcoming Distinguished Advisor Conference, believes the U.S. Federal Reserve's third "quantitative easingî (QE) is bad news for investors. "It suggests the economy is in worse shape than we thought,î says Pape, the author of more than 20 books as well as the editor and publisher of the Internet Wealth Builder. "The Fed says QE3 is about job creation but it is more involved than that. The economic numbers are telling them something ó and the numbers are worse than they thought.î In mid-September, in the midst of a hard-fought U.S. presidential election campaign, the Fed announced its plan to purchase agency mortgage-backed securities at the rate of US$40 billion a month for an indefinite period of time. As well, the Fed decided to keep the target range for the federal funds rate at 0% to 0.25%, at least through mid-2015, an extension of its earlier deadline of mid-2013. "The fact the Fed decided it had to act now,î says Pape, "suggests the situation is deteriorating at a rate that would make further delay a dangerous gamble.î There are other reasons QE3 causes Pape concern. First off, it is inflationary. Commodities are priced in U.S dollars which means it will take more US$ to buy a barrel of oil, an ounce of gold, a pound of copper or a bushel of wheat. He admits that good news for Canada's resources sector ó but bad news for consumers. "Gold is the prime beneficiary,î Pape says. "If you don't own gold, you should. It's a good insurance policy.î The Feds open-ended commitment to print money will also devalue the US$ and put upward pressure on the Canadian dollar, making it difficult for Canadian exporters, who are already feeling the impact of sluggish trading partners. Finally, the Fed move ties the hands of Bank of Canada Governor Mark Carney, who has repeatedly indicated that he thinks the time to raise interest rates is drawing near. But if Canadian rates move too much out of step with U.S. rates, it will be one more factor pushing the C$ higher. "Carney is hamstrung,î says Pape. That makes the theme of this year's Distinguished Advisor Conference ó "Navigation: Charting a New Courseî ó particularly apropos. Pape will address the annual conference, held this year in Naples, Fla., from Nov. 11 to 14, on Monday, Nov. 12; he'll talk about how advisors can develop profitable investment strategies for their clients in what is essentially a stagnant economy. "I'm not a pessimist by nature,î says Pape, "but I am cautious. We have to face reality ó and continue to adopt a defensive strategy.î Early registration deadline for the conference is Sept. 30.  

Fall is in the air and you know what that means: yearend tax-planning and tax-filing time is just around the corner. It's time to get a handle on recent changes to tax laws and their impact on your income. That means it's also time find a tax professional who meets your needs and becomes part of the team of professionals who advise you. But finding the right tax professional ó someone to whom you can turn when an important life event triggers crucial financial decisions ó can seem like a difficult task. Often, you simply don't know what questions to ask, or if you are receiving the right answers for your situations. You can start by asking yourself three questions: What are your top three concerns about your taxes? What are your top three concerns about your investments? What are your top three concerns about your family financial affairs? Once you have identified these concerns, discuss them with the tax professional you are interviewing. Then, use this checklist as your interview guide: 1. Has the professional answered your concerns in plain English? 2. Would you consider this person a "financial educatorî? 3. How does this professional price his or her services? 4. Are these services available to you year round? 5. Does the professional have a "successionî team, juniors he or she is mentoring so you can get service when your professional is on vacation or is ill? 6. Are services guaranteed? What happens if there is an error or omission that costs you interest, penalties or causes you to lose money? 7. Can the professional provide you with three references from professionals who have worked with him or her? 8. Can the professional provide you with three references from clients who have worked with him or her? 9. When is the last time this person took a refresher course? Look for certificates from reputable educational programs. There are thousands of professionals who have Knowledge Bureau certification and designations ó the Master Financial Advisor (MFA) or the Distinguished Financial Advisor (DFA) - Tax Services Specialist ó who are trained to work with you and become part of your inter-disciplinary team. You may wish to seek out local MFAs and/or DFAs and interview them. They are people who you know will be up to date. Every fall, Knowledge Bureau faculty travel across Canada bringing new educational programming to these savvy professionals, so they can update their knowledge for yearend tax-planning opportunities. We also delve into issues involving specialized expertise; this November, we'll discuss cross-border taxation with our special guest, Angela Preteau, CA, CPA. You may wish to join us. It's Your Money. Your Life. At Knowledge Bureau, we strongly recommend that you work with a team of advisors who come from various disciplines, who can assist with a strategic solution when you have important decisions to make. Make sure you deal with competent professionals who can be your financial educator, advocate and steward of your hard-earned money. Evelyn Jacks is president of Knowledge Bureau, which offers bookkeeping and income tax preparation courses within its curriculum. You can also offer financial education books to your clients or other family members. For more information, click here.   Additional educational resources: Cross Border Taxation Course and Distinguished Advisor Workshop.