Campgrounds Back In Tax News

The dreaded CRA audit letter. It can appear in the mail at any time. If you are concerned about CRA’s audit approach to small business corporations and their access to the Small Business Deduction in particular, check this out: CRA has provided an update to its audit position on the matter and specifically for campgrounds when there are fewer than five full time employees in the business. You may recall the story we covered in May, when $250,000 owing in […]

Five Reasons to Get CRA Penalties and Interest Waived

It’s back to school time and families are spending money getting ready for the big day; registration for sports activities seems to be more expensive that ever; and now this: you find you owe money to CRA! That can certainly be an expensive way to end the summer. But in certain circumstances, penalties and interest owed to CRA may be waived. You may qualify in the following instances: CRA has made an error or has had significant delays in responding […]

RDSP: Take a New Look at RDSP to Help The Disabled

Is there a new disability in the family for someone under the age of 49? Astute tax and financial advisors will want to introduce the RDSP (Registered Disability Savings Plan) as a savings option to shore up support for the future. But, who is eligible and what can be contributed? A primer on this very lucrative plan should be discussed with your clients. The RDSP may be established for an individual who has a severe and prolonged physical or mental […]

Financial Capability is Multi-Dimensional; so is Financial Advice

A just-released synopsis of the FINRA National Financial Capabilities survey of close to 30,000 Americans from June to October 2015 showed a stunning lack of financial understanding there; at a time when wealth and income inequality is at an extreme not seen since World War II. But Canadians did not do much better. Despite impressive economic gains since the survey was first conducted in the US in 2009, only 14% of respondents to 5 financial literacy questions answered all correctly; […]

Manitoba Signs On: CPP Final Agreement Coming July 15

Manitoba has agreed to sign on for federal Canada Pension Plan reforms and that gives the required 2/3 approval by the provinces required for the federal plan to move forward. Manitoba wanted emphasis on three key issues, discussed below, but the real issue to follow is this: will this be enough to help middle class Canadians fund their retirements? Manitoba raised some important issues regarding the mechanics of the CPP of the future – thorns in the side of current […]

Back To School? Encourage Fitness Now – Tax Credits End In 2017

There are big changes coming for families who get the refundable Children’s Fitness Tax Credit, so use it before you lose it! Back in 2014, Canadian families were treated to a non-refundable tax credit of up to $1,000 when they enrolled a child under the age of 16 in an eligible program of physical activity. This included programs that enhanced physical strength, balance and endurance. But it only helped families who had taxes payable. Then, starting in the 2015 tax […]

CPP or TFSA? It’s an Issue of Retirement Security

This week, Canada’s finance ministers met in Vancouver and agreed in principle to the expansion of the Canada Pension Plan (CPP) over a seven-year phase-in period, starting January 1, 2019. Higher contributions by workers and their employers will result. But will the revamped CPP be enough to provide for the retirement security Canadians need? Although the CPP is large and robust, the issue is a broad one for Canadians to consider carefully from a planning perspective, especially by younger Canadians […]

Financial Planning and Advice: Is an Integrated Regulator the Answer?

Does financial planning require its own regulatory oversight? That’s the issue the Ministry of Finance in Ontario has charged an expert committee with. Their preliminary recommendations propose an “integrated regulator” and significant restrictions on who has the qualifications to hold themselves out as a financial planner. Consultations on the matter must be submitted by tomorrow, June 17. Knowledge Bureau has been pleased to participate in the process, providing a written submission in September 2015 and a presentation in front of […]

Nine Key Issues for Pre-Retirement Planning

Planning for retirement is an old issue, but now there’s a new take on it: pre-retirement planning. In the past, the focus was on how much pension income was needed to replace actively earned income from employment, to live comfortably until death. But these days retirement is anything but traditional and with employer pensions on the decline, especially defined benefit plans, many other factors must be taken into account when planning for life after work. Planning for the Boomers brings […]

Caring for The Disabled: It’s Tough and You Can Help

As our population ages, disability-related caregiving for family members will increase, but, as a society, how well are we able to cope? From meal preparation and household chores to time off for appointments with doctors or to deal with financial matters, the commitment in caring for the sick, the disabled and dying is enormous and it is exhausting. This demanding area is an opportunity for tax and financial advisors to provide both compassion and much-needed help. First is the opportunity […]