Confirmed:  The CCR for Small Business is Tax Free

Ottawa has confirmed that the CCR for Small Business received by eligible Canadian-controlled private corporations (CCPCs) will be tax free for the 2019-20 to 2023-24 fuel charge years, as will the final payment for the 2024-2025 fuel charge year.  Draft legislation was released on June 30, 2025 with this announcement; and will be introduced for law making in Parliament this Fall.   Some of the more significant details are discussed below.

New divorcees are often unaware that spousal support is taxable, and that can wrack up costly fines with CRA over time. It is important to review the rules before divorce papers are signed to understand the real value of the resulting payments. The payor will, of course, want to get the tax benefits of a deduction, however, if any portion of the spousal support payments are considered instead to be for child support, the payments will not be deductible. That can happen if child support is in arrears. The following checklist can help sort it out: ELIGIBILITY: Spousal support is taxable to the recipient and deductible to the payor, if certain conditions are met: The amounts paid are pursuant to a written separation agreement, judgment, order or decree The parties were separated and living apart when the payments were made The parties continued to live apart for the remainder of the year The payments were made to the former spouse or a third party for the maintenance of the spouse  The payments were made on a periodic basis (lump sum payments are not deductible).  The amount deductible by the payor and taxable by the recipient is the least of  The amount required to be paid under the agreement, judgment or order  The amount actually paid TRAPS: If child support payments are in arrears, all payments are deemed to be child support payments (not taxable) until all child support payments are brought up to date. Once child support payments are up-to-date, additional payments required are considered to be for spousal support, which is taxable. It's important too that agreements define the support payments carefully. For example child support is defined as any support amount that is not identified in the agreement or court order as spousal support. Child support payments made under agreements or court orders entered into after April 30, 1997 will not be taxable to the recipient or deductible to the payor. Court orders or written agreements should be registered with CRA using Form T1158 Registration of Family Support Payments under the following circumstances: The order or agreement was made after April 1997 and it specifies support payments for a spouse or common-law partner. The order or agreement was made before May 1997, it specifies support payments for a spouse or for a spouse and a child, and  Form T1157 Election For Child Support Payments has been filed; or The order or agreement was changed after April 1997 to increase or decrease the amount of child support payable. ADDITIONAL EDUCATIONAL RESOURCES: DISTINGUISHED ADVISOR WORKSHOPS, November 2 in Winnipeg, November 3 in Ottawa, November 4 in Toronto, November 9 in Vancouver, and November 10 in Calgary.  

CRA issued an updated Disability Tax Credit Certificate this week, a requirement for claiming the lucrative disability tax credit for a taxpayer with "a severe and prolonged impairment in mental or physical functions." The amount is claimed as a non-refundable credit against taxes payable, and must be signed by a qualified medical practitioner, so year end is a good time to review vulnerabilities with client families and send them along to their doctor's office to have this lengthy form completed. Any fees paid for the form filling qualify as a medical expense, and it is an expense that can be quite advantageous given how much money the credit is worth. It has two components: Basic Disability Amount is a non-refundable tax credit that acknowledges the expenses incurred corresponding to the treatment of a mental or physical impairment. This amount is available to all taxpayers who qualify. A Supplementary Disability Credit is available for taxpayers who are under 18 years old. The amount of the supplement is decreased by any child care expenses claimed (in excess of the base child care amount). Form T2201 Disability Tax Credit Certificate must be signed by a medical practitioner to qualify. The Basic Disability Amount for 2011 is $7,341. For those supporting a disabled minor, this amount is enhanced by an indexed supplement of $4,282 for 2011, for a total claim of $11,623 for 2011. This amount is reduced by amounts claimed under child care expenses on Line 214 and the disability supports deduction on Line 215 in excess of a Basic Child Care Amount of $2,508 for 2011. It's not always easy to qualify for the credit, and there are often disputes when CRA refuses. Measures announced on November25, 2010 will ensure that individuals can appeal, in every case, a determination concerning their eligibility for the Disability Tax Credit. In order to object to a determination, the taxpayer must file a Notice of Objection before the later of: 90 days after the notice of determination is mailed and one year after the due date of the taxation year to which the disability claim applies. For those who missed claiming the amount may reach back and recover missed credits for a period of up to 10 years; which means that tax year 2001 will drop off on December 31. ADDITIONAL EDUCATIONAL RESOURCES: EverGreen Explanatory Notes; Introduction to Personal Tax Preparation  

As investors fret about the latest market gyrations, there is much that can be done to hedge against loss. How you invest, when you invest and for how long has significant impact on wealth accumulationówhich determines whether you'll have income for life and beyond. Retirement income adequacy, according to post-crisis research by the Department of Finance "critically dependsî on three things: ∑ the tax assistance for savings (RRSP versus nonñRRSP), ∑ timing of investments and ∑ the type of investment. According to the study, by Dr. Vijay Jog (December 2009), an individual investing 18% of her saving. . . in blended portfolio at zero cost and invested in corresponding passive equity, debt and t-bills would have saved 18years worth replacement income (60% of salary). The same amount invested outside RRSP would have resulted in 14years worth replacement income. Both these numbers assume a 35% tax rate during workyears and a 20% tax rate at the retirement year.[1]î Predictable investment income returns result from a combination of efforts. Performance of your investment is important, but so is financial behavior. For example, when you manage your spending carefully (cutting back expenses by 4% is akin to an 8% return on the money before taxes at a 50% marginal tax rate), more money is available for savings. All savings plans begin with the end in mind. Through precise planning and product selection, you will be able to build the income sources to generate income for life, even though there are many hurdles to jump or avoid along the way. A series of questions to review at year end include the following, to facilitate decisions that could still impact the opportunity to create new wealth in 2011, despite current market conditions: What is your life expectancy, compared to the national average? How much money can you save? (Project this out over your lifetime) How much money can your savings generate in income for you? How long will your money last if you start withdrawing your capital to live? What investments will help you achieve your goals? ADDITIONAL EDUCATIONAL RESOURCES: Distinguished Advisors Workshops: November featuring year end tax planning.       [1] Investment Performance And Costs Of Pension And Other Retirement Savings Funds In Canada: Implications On Wealth Accumulation And Retirement, Dr. Vijay Jog, December 2, 2009

How can you be more innovative and then let the world know about it? It's an interesting question, in the context of last week's blog, in which we discussed Canada's drop to 12th place overall, in the World Competitiveness Report. The Finance Minister, Jim Flaherty, spoke to the matter in a September 16 news release, too. In it he "urged the private sector to increasingly make innovation a central component of business strategies to ensure that Canada can compete with the world's best and transform promising ideas into pioneering results.î While the government has earmarked funds for research and innovation, upgraded universities and even the government's intent to market Canadian business outputs to a global economy, for most businesses in the trenches today, bringing new and promising ideas to market is expensive: they require capital in a difficult lending environment. To get the financial backing, requires well-researched and astute business planning, often assisted by a great presentation to a lender. This can be burdensome in a more naturally reserved Canadian culture. The key question, however, is this: why should a lender help you innovate so that your business could be more competitive? You'll need to let your passion show. For many businesses, that passion is driven by the seductive power of positive reinforcement: how well their innovative value propositions are meeting their customers' needs. A good starting point, in being more competitive, might be to do some research with your clients. If you are working in the financial services, for example, you are aware that Canadians are being bombarded with disheartening financial news every day. It's quite possible that you may be the leader they are looking for to help them make decisions. Have you asked, recently, how well you are meeting those needs? Do you have the new knowledge and skillsets that are required to do so? At the Knowledge Bureau, we have been passionate about our innovation: teaching Real Wealth Management as a framework for building sustainable, intergenerational wealth. It has been a delight to know about the positive results our graduates are experiencing both in new personal insights and in collaborating with their teams. In a fragile financial world, we can get better results, and that's why it's worthwhile trying new ways to do so. Doing the same things over and over again and expecting different results, after all, is the definition of insanity, according to Albert Einstein, who, incidentally, was also responsible for one of my favourite tax quotes: the hardest thing in the world to understand is the income tax. (Hard to disagree!) It's Your Money. Your Life. What are you passionate about in your work? Are you sharing that with your clients? Let them know. . .you might be surprised at how well you are doing when you listen to your value proposition from your clients' point of view. Evelyn Jacks is President of Knowledge Bureau and is currently co-writing a new book with Robert Ironside and Al Emid entitled "Financial Recovery in a Fragile Worldî.  

Statistics Canada reported on September 16 that tuition fees have increased across the nation. The data was taken from the Survey of Tuition and Living Accommodation Costs for Full-time Students at Canadian Degree-granting Institutions which was administered May to June 2010 to cover the 2010/2011 academic year. However, statistically an investment in post-secondary education will still prove to be one of the best investment decisions young people can choose to make. On average, full undergraduates paid 4.3% more on average for the 2011/2012 academic year, compared to a 4% increase in 2010/2011. This may seem like a hefty increase when compared with inflation, which was 2.7% between July 2010 and July 2011 as measured by the Consumer Price Index. Fees also increased for graduate students across the nation; with increases ranging from 0.1% in Alberta to 5.5% in Ontario. The only provinces which did not see an increase were Newfoundland and Labrador. The data taken from the Programs with the highest costs were excluded from the survey to avoid skewing the overall tuition fee average. The cost/benefit of attaining higher education truly pays off over time. Higher education is strongly correlated with a higher income as well as job security. The rewards can thus pay off immensely; a 2008 report from HRSDC showed that while not only do earnings increase over time, but also contributes to higher income during retirement. The growth in average earnings between the ages of 25 and 54 jumped from 49% to nearly 100% for those with a high school diploma and those with a university diploma, respectively. On average, a university graduate will earn double that of a high school graduate. Income growth can also be attributed to other factors, such as training and learning opportunities over time, but most can be attributed to higher education. Just as the time-value of money increases over time, so does the time-value of education. By educating yourself and pursuing continuous professional development over the course of your career, you can achieve greater financial stability and wealth.  

Evelyn Jacks, Founder & President of the Knowledge Bureau, has been named as one of Canada's Top 25 Women of Influence. "We are excited to award Evelyn's successful achievements and contribution to Canadian and global economies and highlight her as a Woman of Influence,î says Carolyn Lawrence, President and CEO of Women of Influence. Evelyn Jacks is responsible for Canada's leading financial publisher and educator in the tax and financial services, the Knowledge Bureau. She is a member of the Federal Task Force on Financial Literacy, and has received numerous business leadership awards including the Canadian Woman Entrepreneur of the Year Award. She is a best-selling author of 48 personal tax and wealth management books. A respected financial commentator, Evelyn makes regular media appearances including  national programs like CBC Newsworld and BNN, writes for the Toronto Star and the Toronto Stock Exchange. The Top 25 ranking is organized into five categories. Women from the realms of Business, Health Services, Professional Services, Public Sector and Non-Governmental Organizations were nominated to represent a variety of talent and success in fields that don't often gain mainstream recognition. Each member of the Top 25 was chosen based on quantitative and measurable criteria such as industry recognition, awards, board positions, deals and title; overall measuring each candidate's influence in Canada and beyond. The Top 25 were ranked from a pool of hundreds of accomplished Canadian women and represent a diverse list of women who are leading the pack. Lawrence believes that all of the women chosen represent the core values of Women of Influence. They are authentic leaders, extraordinary achievers and exceptional role models for other aspiring Canadian women. Evelyn, among the other Top 25 women, will be profiled in the winter issue of Women of Influence magazine and have an opportunity to be featured on the cover. The cover selection process will involve an online voting period which encourages participation from readers to select the woman they want to see on the cover. The online campaign will launch Monday September 19th and allow users to vote until Friday, September 30th at which point the cover will be selected. Women of Influence Inc. produces inspiring, progressive, and celebratory events across the country. Their programs serve to fill the gap for women looking for mentors, looking to connect with likeminded individuals on their path to success. Women of Influence magazine reaches over 100 000 readers each quarter and offers inspiring career advice, high quality fashion editorial content and profiles the achievements of Canadian women in business. For more information visit http://www.womenofinfluence.ca/ To book an interview with one of the Top 25, or for more information on the program, contact: Alicia DeBoer, Media Assistant O: (416) 923-1688 E: media@womenofinfluenceinc.ca