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.

Evelyn Jacks, President of the Knowledge Bureau,   Cordially Invites You To   A VIP BREAKFAST                        Please Join Us For An Important Update on Current Issues:                                             Post-Election Tax & Economic Overview                                    Financial Literacy: Your Role as Financial Educator                          Including Strategy & Process in Your Strategic Education Plans                                             Knowledge Bureau CE Credits: 1 hour                                                     DATES & LOCATIONS       May 6th WINNIPEG 7:45-9:00 am Knowledge Bureau Offices ñ 187 St. Mary's Rd                          May 9th CALGARY 7:45-9:00 am The Petroleum Club                            May11th VANCOUVER 7:45-9:00 am Terminal City Club                                            May 18th TORONTO 7:45-9:00 am The National Club                   Our educational consultants will be available to discuss new options                                       for professional development only from:                                                      RSVP By May 4th, 2011                                            Suzanne@knowledgebureau.com                                                         (204) 953-4767

By this time next week we will know the outcome of the federal election on May 2, and the personal tax filing deadline, which occurs at midnight May 2nd, will have passed.  Most Canadians will have filed on time to avoid interest and penalties on balances due, and many will be adjusting prior filed returns for errors or omissions.  Last week, CRA released a revised T1ADJ form for those purposes.  However, the vast majority of taxpayers will be focused on a refund for the current year, so here are some tips to help you spend it wisely: 1. Leverage Your Tax Refund Resist the temptation to buy yet another flat-screen TV. Now is the time to make the commitment to your RRSP, your Tax Free Savings Account and paying down your consumer debt. But what comes first? This may be a question for tax advisors, financial advisors and their clients to review together. Your RRSP will reduce your net income, the figure used to determine the size of clawback to refundable tax credits like the Child Tax Benefit or GST Credit and social benefits like the Old Age Security or Employment Insurance. It will also increase non-refundable tax credits for 2012, based on net income: Age Amount, Spouse Amount and Medical Expenses to name a few. Only 6% of Canadians maximize their RRSP room each year. Find out what you missed out on by not making the contribution last year. Then find out just how effective your RRSP savings will be in helping you build wealth this year. 2. Catch up on late-filed returns. Whatever your reason for missing your tax filing deadline, again and again ó too busy, afraid you'll owe, too disorganized ó make it your plan to catch up, especially if the government owes you a refund.  It doesn't make sense to give the government an interest-free loan which could instead be working for you invested in a TFSA, RRSP or other savings account. Failing to file tax returns also causes other misses with your tax-efficient investment strategies: RRSP room is not calculated for the missed years, capital losses are not reported and refundable tax credits to which you are entitled languish for your attention in government coffers. 3. Know What's Coming. There is a lot we know about your tax advantages for the current tax year, 2011. For example, provincial budgets have recently been tabled in all provinces and territories, and we also know the federal tax brackets and rates, and the indexed amounts for non-refundable tax credits. In addition, the last federal budget introduced changes to tax law that were shelved for now, but it would not be surprising to see many of the provisions re-introduced in the future. As a minimum, do consider whether you can reduce withholding taxes as a result of your tax reporting in 2010, and in addition, review whether instalment payments will be necessary for the rest of 2011.  If not, you'll be able to invest the difference, or pay down debt, both of which would be to your fiscal advantage. For a post-tax season, post-election review of those provisions, do join the Knowledge Bureau in Winnipeg, Calgary, Vancouver and Toronto for a VIP breakfast event. For more information and to register, please see our KB Community page! ADDITIONAL EDUCATIONAL RESOURCES: Master Your Taxes  

Financial education is alive and well in two provinces ñManitoba and Quebec-- let's spread the word! On April 18th the Manitoba Securities Commission launched a financial literacy initiative targeted at women. Entitled I'm Worth It , this knowledge initiative features videos, stories, ideas and strategies for independent financial management that will help women to gain control of their finances. Materials are available in French and English and there is no cost. You go, Manitoba! In Quebec, the Autorité des marchés financiers announced $750,000 in funding on April 18th for projects through its Education and Good Governance Fund. These initiatives include funding for: Universities for course development, research and designing on-line financial education tools The Jamaican Canadian Community Women's League of Montreal for its Dollars Make Sense Leadership Project for youth Elementary school teachers for The ABCs of Finance, an on-line financial education learning and evaluation tool Schools and youth centres to continue and improve the Best Ads Awards, designed to teach 13-17 year olds critical thinking when it comes to advertising Rosemont College, a financial literacy institution that will be created to deliver financial training and education I'm Up to my Neck in Debt, a credit debt and awareness campaign that will be revised to focus on the 30-45 year old demographic ADDITIONAL EDUCATIONAL RESSOURCES: EverGreen Explanatory Notes

Did you know that between 1984 and 2009 Canadian real average household debt more than doubled? Mortgage debt accounts for most of this, and as interest rates decreased during that period, the household debt load increased. Things really took off in 2002 and we all know where things ended up in 2008 and 2009. Now, as we dust ourselves off and look around, it is important to reflect upon what we have learned, and to ask: Where is this heading? Consumer prices rose 3.3% during the 12 month period ending in March, 2011 ñ this is the largest increase since the year that ended in September, 2008. Food, energy, gasoline and clothing are some of the items that rose in price. A higher cost of living coupled with increasing interest rates is a distinct possibility in the not-so-distant future.  Canadians need to keep up-to-date on issues that may affect financial security.  Canadian Social Trends is published by Statistics Canada every 6 weeks. The latest edition, published April 21, 2011, contains some alarming date in the article Debt and Family Type in Canada. Surprisingly, increased household income as a result of women entering the workforce prompted more borrowing during the past 25 years. Between 1970 and 2009, real disposable household income rose by 37% and this allowed greater access to debt. There were other factors: consumerism, a hot housing market due to demand from the baby boomers, less stringent tests of creditworthiness, wild and wonderful financial products and government "hands offî policies for the financial sector. This produced the perfect environment for the "buy now, pay laterî generation and here we are, facing rising prices and on the cusp of an inevitable climb in interest rates. Stats Can used data from the 2009 Canadian Financial Capabilities Survey to analyze the types of households that are more likely to have problems with debt. The results of the survey show that, among households with debt, the average debt level is $119,000, and younger Canadians are more likely to have debt than older Canadians. Unattached individuals carry less debt than other households, perhaps because they are less likely to own a home and carry a mortgage. Indicators such as the debt-to-household income ratio, which rose from 93% to 148% from 1990 to 2009, are significant. Research indicates that if interest rates rise 3%, this ratio has to fall to 125-130% just to keep the interest payments on the debt stable.  In other words, pay down debt now, before interest rates rise, otherwise your payments are going to take a bigger chunk of your income. The total debt service ratio measures the ability of a household to pay off its debt. The Bank of Canada defines a high total debt service payment to be more than 40% of pretax household income. Dual parent households with children are just as likely as households led by lone parents to have a debt service ratio of 40% or more.  This is high - most banks use 30% or less to approve mortgages.  One financial emergency can cause a household to exceed the family budget and miss payments, losing ground that is difficult to regain. The conclusions? Family type is significant when looking at indicators such as debt to income ratio. However, households of all types struggle with debt as measured by debt-to-asset and total debt service ratios. What does this mean? No one is immune to indebtedness, and financial education should be directed at Canadians from all walks of life. ADDITIONAL EDUCATIONAL RESOURCES: Certificate of Achievement in Personal Finance

The 2011-2012 budget for Newfoundland and Labrador was tabled on April 19, 2011. Theprovincial  economy grew in 2010, with a real GDP growth of 5.6%, the highest of all the provinces. Employment has returned to pre-recession levels, and retail sales grew by 3.7%. Housing starts were up by 18% and investment and real exports experienced significant gains. A surplus of $485 million was the 5th in 6 years, with net debt down 31% since 2004-2005.  The economic outlook for 2011 is healthy, with a $59 million surplus forecast and a further reduction in net debt expected. With a theme of "Standing Strongî, the budget speech extolled the benefits of the Muskrat Falls and Gull Island hydroelectric projects. They will give the province the ability to provide clean energy to the Maritime Provinces and New England.  Infrastructure, especially in remote areas, will maximize the potential of these projects in terms of job creation and industrial expansion. Support of traditional fishing communities and innovative practices such as fish farming is maintained so that Newfoundlanders can continue to earn their livelihood from the sea. Agriculture and the forestry sector continue to receive government support through outreach to rural areas. Tourism and Culture are thriving, up 7% in 2010, and visitor numbers are steadily increasing. Newfoundland's Innovation Strategy has strengthened the research and development capacity of the province, with $19 million available to help bring new products and technologies to market. A Climate Change Action Plan and Energy Efficiency Strategy will enable all citizens to take part in greenhouse gas reduction initiatives. And an economic and trade agreement with the European Union will further strengthen economic opportunities, attracting business and investors and giving young people a reason to stay in the province. Initiatives to support in-home child care small businesses and early learning are included in the budget. Money for schools and post-secondary infrastructure has been allotted and the university and college tuition freeze is maintained.  An Adult Dental Health Care program is being developed and investment in affordable housing, employment and education programs are some of the other poverty reduction measures announced. Healthcare spending includes a web-based e-mental health service, enhanced long-term care delivery and initiatives to retain healthcare professionals.  Autism, addictions and prevention are given special mention.  Medical facility renovation and construction is planned throughout the province. New tax announcements include a new, non-refundable child care tax credit beginning in 2011, based upon the child care expenses that are currently deducted from income. The budget document refers to this as an additional measure that will save a taxpayer with $7000 in childcare expenses another $539 in provincial tax. Clawback of tax refunds for income support clients is eliminated in this budget, and the new Residential Energy Rebate of 8%, equal to the provincial sales tax, will provide relief for many facing climbing home heating costs. This comes into effect October 1, 2011 and is available to every household in the province. A new, non-refundable Volunteer Firefighter's Tax Credit in the amount of $3000 has been announced; that will generate a tax saving of $231.00. The budget lauds examples of cooperation, such as municipal amalgamation, combining and sharing services and strategic partnerships. It speaks of Newfoundland and Labradorians, at home and abroad, who have shaped the success of this province in good times and in bad.

In the April, 2011 edition of The Canadian Economic Observer, the section on Current Economic Conditions discusses the provincial, national and global economies. It observes that the first months of 2011 saw economic growth in Canada due to energy and auto exports, while the U.S. improved with the credit going to retail sales, auto assembly and a strengthening labour market. Overseas, Britain, France and Germany continued a slow recovery while developing nations such as Brazil experienced rapid growth coupled with rising prices that have prompted high interest rates. In the provinces, this issue of the Canadian Economic Observer reports that central Canada benefitted from a rise in manufacturing while retail sales declined. In British Columbia manufacturing grew, especially in forestry-based industries, while retail sales and housing starts were down. The prairies experienced a loss in manufacturing sales but household spending and housing starts posted gains as winter ended. Are you looking for a reliable source of economic statistics and interpretation?   Look no further than the Canadian Economic Observer.  With a federal election on the horizon, why not vet economic issues through the lens of this venerable Canadian publication?  A monthly journal published by Statistics Canada, this compilation of economic data contains interesting facts and analysis and a topical feature article. There are twelve main sections: Current economic conditions Economic events Feature article and Recent feature articles National accounts Labour markets Prices International trade Goods-producing industries (manufacturing, construction and resources) Services (trade, transportation, travel and communications) Financial markets Provincial With so much information available out there, and not enough hours in the day, it is difficult to schedule time to keep up-to-date on the state of affairs in this country and beyond.  Here's an easy reminder  - you can sign up at Stats Can to receive notice when the Canadian Economic Observer is issued each month. Take a few minutes and read up on economies here and around the globe ñ a little education is always a good thing!