Have you explored all of the tax-efficient income options available to generate consistent income that will provide for your retirement needs and wants? If you’re a Boomer challenged to find tax-efficient options, discuss these four alternative sources with your tax advisor today. Many tax advisors will have these resources available in their retirement toolkit, in addition to the government benefits and private savings options that are more commonly used by Canadian investors. Taking advantage of these alternatives is especially important […]

For many Canadians filing a tax return is the most important financial transaction of the year. Getting the best tax refund is important: not only will it put more or the money you previously earned back in your own pocket, your refund can make at least some of your cash flow and retirement worries go away. Here’s how: The average tax refund last year was $1,735 or about $145 a month. If that money was going into an RRSP, over […]

March 1, 2018 is an important date for savvy taxpayers: don’t miss topping up your RRSP contribution by this deadline. It’s a great investment for your retirement, of course, but it’s so much more powerful: there are, in fact, three additional tax secrets most people don’t know about that can help you improve your finances. First, your RRSP accumulations will provide valuable options for lifelong learning and for homebuyers, too, as you can withdraw funds for those purposes on a […]

Filing a tax return is the first, and often most important, financial transaction of the year for millions of Canadians. What’s different in 2018? For starters, the government is hanging on to early filers’ refunds longer than ever. With last year’s average tax refund clocking in at just over $1,735, that’s a big deposit that cash-strapped Canadians don’t have for their RRSP or TFSA deposit. The taxman won’t start accepting tax returns for electronic filing until February 26—two weeks later […]

Canada has 1,673,785 aboriginal people, representing 4.9 percent of the population. According to our census, this population has grown 42.5 percent in the period 2006-16 and the average age of the aboriginal people, at 32.1 years, is close to a decade younger than the rest of Canada. There are unique tax filing concerns for these Canadians, requiring specialized knowledge. Approximately 75 percent of aboriginal people have registered Indian status and 44 percent of these people live on reserves. That’s notable […]

Last week we discussed a new Canada Caregiver’s Credit (CCC) for spouses and eligible dependants who can be claimed as “equivalent to spouse.” But did you know that you can now make a new claim if you are a caregiver of a dependent minor or adult child who is infirm? It’s possible under the revamped Canada Caregiver Credit. Quick recall: the Canada Caregiver Credit comes with two parts: A “Mini” CCC of $2,150, which must be claimed for an infirm […]

In its first major tax reform in over 30 years, the United States is considering a package of tax changes that if passed into law, could significantly impact Canada’s ability to keep top talent and business ventures from moving across the border. While Canadian high-income earners have faced various federal and provincial tax hikes since 2016, and private businesses are fighting this summer’s controversial high-tax  reforms, the federal tax proposals in the U.S. are much friendlier to several taxpayer profiles: […]

This week brought more controversial tax news to Canadians: the Paradise Papers and a new tax “consultation”; this time in advance of the 2018 Federal budget. The elephant in the room in both these stories is the unfinished “consultation” on the massive tax changes proposed for private businesses. Small business owners are still reeling from the potentially exorbitant tax hikes on the incomes from their invested capital in private corporations within Canada, even as they hear about potential tax erosion […]

A couple of weeks ago, the financial news of the day involved a controversy about the taxation of employee benefits. CRA was enforcing its interpretation of the law in relation to the taxation of the benefit of receiving employee discounts at work. After a political outcry, CRA backed down, leaving several question marks. That’s regrettable because tax law must be certain – up front – in order for employers to properly fill out T4 slips and communicate the net after-tax […]

Audit-proofing strategies must be implemented by tax professionals and their diabetic clients receiving disability tax credits in light of the CRA’s new interpretation of the rules. CRA has changed their position on allowing diabetics to claim disability tax credits in certain cases; a national news controversy that is leaving taxpayers uncertain about claims specific to important life sustaining therapies for their loved ones.  So exactly what are the rules and why is CRA changing their interpretation in retrospect? Criteria for […]