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Last month’s Knowledge Bureau Poll brought a surprising result from tax and financial professionals: 52% thought the extension of the Canada Emergency Response Benefit was a mistake. The 48% who agreed were more prolific in their comments, however. Here’s what you said:
When someone in the family dies it is important to turn to the tax system to file any required tax returns that may be outstanding and to claim specific tax benefits that can help to pay for end-of-life costs. What are the rules for filing on time in this most unusual tax filing year?
As we reported in our last KBR, the new Canada Emergency Wage Subsidy (CEWS) was extended to include 9 Periods, but this extension brings some mind-numbing complexity with it. Businesses can apply for the subsidy starting on Monday, August 17 for Period 5, which began on July 5 and runs to August 1. CRA has also developed a CEWS calculator and spreadsheet to help make the claim. Here are the highlights of how it works:
Payroll is a lot more complicated to calculate when employers offer perks to their employees. But these taxable and tax-free benefits, which can include reimbursement of housing losses and interest-free loans or parking costs, can make it more attractive for employees to sign on and stay. For example, did you know…?
Did you know you can go back 3 years to optimize pension income splitting? You have up to three years to elect to split pension income, or to amend an election. With the effective due date for the 2019 return being September 30, 2020, one might think that the 2016 election could be amended up to the end of September 2020, but that’s not the case. Changes to the 2016 election had to be made by May 2, 2020 (three years after the due date for the 2016 return). However, changes to the election for 2017, 2018, and 2019 may still be made.