The Tax Refund: Friend or Foe to Wealth Management?

The Statistics Canada’s Individual Income Tax Report*released on January 8, highlighted just how much Canadians are being over-taxed by the CRA. With average tax refunds coming in at $1,757 for the 2018 filing season, many taxpayers are effectively providing the government with interest-free loans of approximately $150 per month for up to 16 months before they see their refund. Just how much is that really costing you? Consider this: $150 a month could help you take advantage of investment opportunities […]

What Else Is New in 2019? Auto Expense Deduction Changes

Did you check your odometer reading at the start of the year? Finance Canada confirmed its 2019 auto expense rates on December 27, but they don’t quite measure up to cover the carbon taxes that increase the cost of driving, including the increased gas prices as of January 1. Those who use passenger vehicles for business will be disappointed that their write-offs haven’t changed at all, unless a new vehicle was purchased after November 20, 2018. Here are the tax […]

Get Ready for 2019: Six Great Tax Moves and Audit-Busters

These tax tips have been excerpted from Evelyn Jacks’ Essential Tax Facts: How to Make the Right Moves and Be Audit-Proof, Too,which has been fully updated with the information your clients need to know when filing their 2018 taxes. It’s not too late to give Canadians the gift of financial literacy this holiday season – and shipping is free!  Game-Day Tax Strategies Be sure to adjust your prior filed returns for errors or omissions before the end of the year, […]

Educate Your Clients: Six Essential Tax Tips for 2019

Share the gift of education with your clients this holiday season! By discussing the six essential tax tips your clients need to know for 2019 and beyond, you can help Canadians become more informed on the tax-efficient decisions that will improve their financial health in the new year. KBR’s top tax tips have been excerpted from Essential Tax Facts: How to Make the Right Moves and Be Audit-Proof, Too,which has been fully updated with the information your clients need to […]

Shopping Spoiler Alert: Canadians Aren’t Saving Enough

In the holiday spirit yet? This news might dampen it: on Friday November 30, Statistics Canada released a report on GDP, income and expenditure for the third quarter of 2018. The big news? In 2018, Canadians have had the worst household savings rate on an annual basis since 2005, averaging only 1.4% over the past year. For the third quarter of this year, the household savings rate was a mere 0.8%; the lowest quarterly level since early in 2017. There […]

Donation Controversy: Tax Relief for Media

Last week’s Fall Economic Statement featured updates to Canada’s economic outlook and corporate tax changes, specifically, the Capital Cost Allowance measures. However, the Finance Minister also proposed a controversial $595 million package to support Canada’s media sector, including tax breaks for those who subscribe to some online media outlets. Speaking on November 21 to his support for journalism in Canada Morneau said, “We’ve made some investments to ensure that we continue that we have an important free press and to […]

Fall Economic Statement: Tax Incentives for Corporations

Canada has been in a strong economic position since 2015, but dark clouds are on the horizon as global economic growth has peaked and deficits are expected to grow. This is what Finance Minister Morneau faces as he unveiled his November 21 Fall Economic Report. Canada’s economic growth has averaged close to 2.5% since the end of 2015 and in the last three years, the unemployment rate has fallen to 5.8%, the lowest level in 40 years, which has brought […]

Death in the Family: Executors’ Obligations

Year-end can be a particularly difficult time for those who have lost a loved one during the year.  But it’s important to see a tax specialist when someone in the family dies, to file any tax returns that may be outstanding on time, adjust prior-filed returns, and to claim specific tax benefits that can help to pay for end-of-life costs. Filing deadlines. The final tax return, also known as the terminal return, must be received by CRA as follows: Death […]

Missed Prior Returns: 8 Reasons to File Before Year-End

Forget to file a tax return in a previous year? It can pay handsomely to catch up before year-end. Not only can you recover tax refunds CRA may still owe you (that’s the main reason for most), but here are 8 additional reasons to file those missed returns before year-end: To receive missed benefits and credits: The GST/HST Credit, the Canada Child Benefit, the Refundable Medical Expense Supplement, or available refundable provincial tax credits provide generous tax free income sources, […]

Tax Filing Delinquency: 8 Reasons to Catch Up Before Year-End

It pays to file outstanding tax returns before year end, not only to recover refunds that CRA may still owe you, but also to avoid paying penalties and interest that would be charged for gross negligence or in some cases, tax evasion. But also, when you don’t file on time, you miss out on important tax planning opportunities that may end for you on December 31. Here are 8 important reasons to review your return before year-end. To the first […]