Finance Canada Releases Ways and Means Motions

The Notice of Ways and Means Motion and Explanatory Notes for the tax provisions of the April 21, 2015 Federal Budget were tabled on May 4, and contain the detail required to set up family tax and wealth planning strategies for the 2015, 2016 and future tax years as envisioned in this document. 

In addition, this W & M Motion introduced measure from Bill C-57, the Support for Families Act, tabled on March 27, 2015.

These matters will be explained with case study examples at the Distinguished Advisor Workshops being held in four cities this June by Knowledge Bureau, which should be of interest to all tax and financial advisors working on planning issues with their clients for 2015 and beyond.  Early registration for the event ends May 31.

Specifically, for both tax and financial advisors who work with business owners, important changes have been made to the Small Business tax rate, and corresponding dividend taxation rules, the lifetime Capital Gains Exemptions, investment tax credits, and several rules surrounding machinery and equipment purchases made in 2015 including accelerated CCA for machinery and equipment in the manufacturing industry.

Financial advisors, particularly those specializing in tax efficient retirement income planning, will want to understand the new provisions and resulting strategies for pre- and post- retirees due to new rules for investing in TFSAs and withdrawing funds from RRIFs.  In addition, there are changes to conditions applicable to PRPPs (Pooled Retirement Pension Plans).

Tax practitioners working with individual families will want to understand and communicate new rules for families including changes to

• the Child Amount,

• the ordering of credits on the tax return,

• details around optimizing the Family Tax Cut Credit and related other non-refundable tax credit provisions,

• the new Home Accessibility Tax Credit and its impact on optimizing medical expenses

• the new Critical Injury Benefits, EI compassionate care benefits and Family Caregiver Relief Benefits.

• In addition, there are new nuances in filing tax returns for Bankrupts