Newcomers Need Advice: Can You Explain Our Complex Tax System?

Our nation’s system is complex even to tax-educated Canadians. Imagine how mind-boggling this must be for newcomers (immigrants and refugees) and returning residents to Canada. There’s opportunity for advisors to work with this vast niche market and become a trusted educator and advocate for these families. Doing so will bring a significant multi-generational wealth management opportunity with this demographic, and the numbers support this. According to Statistics Canada, 20.6 percent of Canada’s total population is foreign born, which represents the […]

Canada Caregiver Credit: The Missing Tax Link

The Canada Caregiver Credit (CCC), new in 2017, is still poorly understood and a complicated tax break to explain. For these reasons, many Canadians have missed claiming it. Tax and financial advisors who really want to help families under medical stress can make a big financial difference will add it to their year-end review and adjust 2017 tax returns for missed claims. The CCC replaced the Family Caregiver Tax Credit, the Caregiver Tax Credit, and the Credit for Infirm Dependants. […]

Worth the Claim: Disability Tax Credits

CRA audit activities extended to those who claim Disability Tax Credits (DTCs), especially diabetics and children with autism, has continued to raise the ire of taxpayers. The $1.3 Billion in tax relief has been inconsistently applied and retroactively disallowed. But if you qualify, you could go back and recover that lucrative tax credit – all the way back to 2008. It’s one of three important tax credits the vast majority of families often miss out on. It’s why I have […]

Caregivers: Tax Literacy Matters

The vast majority of Canadians caring for sick and disabled family members are missing out on lucrative tax assistance and paying for expensive care costs out of pocket, according to a CIBC poll. Worse, only 12 percent of caregivers are accessing available tax deductions, credits, and benefits on their tax returns. his creates an opportunity for tax-savvy financial consultants to provide valuable advice. In this three-part series, three of the most important credits to for advisors and clients to discuss […]

Inflation Hits High Point: Continues Upward Trend to 2.5%

Inflation has hit its highest point since February 2012’s 2.6%. It now sits at a lofty 2.5%, and is expected to hold steady until the second half of 2019. Poorly understood, inflation, together with high taxes and rising interest rates, is a great wealth eroder. This trend brings with it an opportunity for you to add value in discussions with clients. Up from 2.2% in May, the 2.5 percent inflation rate applies based on economic trends throughout the month of June. This […]

Take 2: New Complex Tax Rules, Short Comment Periods

If the date July 18, 2018 rings a bell it should: it marked the one-year anniversary of Morneau’s controversial small business tax proposals. This year, mid-summer tax complexity is again in the news, as Finance Canada released two important new tax documents for Canadians on July 27: the Draft Sales and Excise Tax Legislative and Regulatory Proposals and the Draft Income Tax. The Draft Sales and Excise Tax Legislative and Regulatory Proposals impact the GST/HST holding corporation rules, the excise […]

Non-Residents in the Family: What’s the CRA’s Take?

Summertime is family time; but it is also the time of year when people prepare for big life changes taking place in the fall. Young adults make plans to work abroad, travel or go to school and empty-nesters journey to warmer climates. However, non-residency comes with tax consequences, so a visit to a tax advisor should be part of your travel preparation. In fact, it can pay handsomely to find a cross-border tax expert who can help you determine with […]

CSA’s Proposed Client-Focused Reforms: KYC and KYP Guidelines

The Canadian Securities Administrators (CSA) recently proposed expanded guidelines on registrants’ obligations to act in a client’s best interests and on its proposals regarding embedded commissions. Knowledge Bureau is pleased to announce that Ian Russell, President and CEO of the Investment Industry Association of Canada (IIAC) will provide expert commentary on the matter at the Distinguished Advisor Conference November 10-14 in Quebec City. The proposed amendments outline ways in which a registrant may tailor it’s Know Your Client (KYC) process […]

Protecting Investors’ Best Interests: It’s Been a Long Journey

On June 21st the Canadian Securities Administrators (CSA) released a harmonized set of proposals that requires investment industry representatives (registrants) to promote the best interests of their clients and put them first, to improve client outcomes. It’s something most clients would expect of their professional advisors; yet there are several investor protection concerns to address. The CSA, the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association of Canada (MFDA) – together known as the SROs – have […]

U.S. Repatriation Tax Is Hitting Canadians Hard: Are Your Clients Affected?

Donald Trump’s U.S. tax reforms are having a significant spillover effect north of the border, as many individuals with private businesses in Canada are facing an enormous tax bill in the U.S. If your client base includes any corporation in which a U.S. shareholder controls at least 10 percent of the voting rights or value, you need to know the details of this punitive measure. he one-time “repatriation” tax of 15.5 percent that is part of Trump’s Tax Cuts and […]