Canada Needs a Financial Plan

According to a July 23 publication by the Fraser Institute, we are getting poorer here in Canada and the prospects for economic growth are looking grim.  This should be of concern to every Canadian concerned about their “real income” – that’s their purchasing power – and by extension - their ability to fund consumption now and for important family milestones in the future:  retirements, education and homeownership.  It’s grim, but there are practical suggestions for a turn around plan. Here’s a synopsis of the report.   

Since 2009, the government has worked to create a new Employee Life and Health Trust to replace Health and Welfare Trusts.  Last month, new rules were proposed to allow for the transition of Health and Welfare Trusts and permit for the rollover of assets, so that one set of rules can be applied to both. In addition, new “designated employee benefits” and relaxed restrictions for “Key Employees” were introduced.   An overview follows:

The results of our November poll were sobering; after a neck-in-neck race with opinions divided, 50.29% of professionals in the tax and financial services answered “no” when we asked if they thought their business clients would be able to make ends meet before year-end.

When we say everything is included in the Virtual Advanced T1 Tax Update on January 20, we mean it!  As a special bonus, when you enrol by December 31, we’re including the snacks to keep you on your game as you learn from 4 of Canada’s most esteemed tax instructors. RSVP now and you’ll also avoid paying “walk up” rates that apply after January 15.

Did you calculate whether a December 15 instalment remittance was required to top up  tax pre-payments for the 2020 tax year? At this busy pre-Christmas time, it is easy to miss. For these reasons, it is so important to plan to reduce taxes payable.  One way to do that is by making charitable donations before year-end. Here is what you have to know about avoiding expensive CRA interest:

It is in December that millions of people around the world will give to one another and to their favorite charities. Typically, gifts will be in cash; however, you may also give gifts in kind and receive a donation receipt. But, you have to be very careful about the tax consequences before and after the gifting.  Here are some tax tips to consider:

The Grinch just keeps showing up at the doorway of Canada’s ailing small business community.  Due to a lack of clarity on the definition of qualifying income levels for the receipt of the Canada Emergency Response Benefit (CERB), many now face the prospect of repaying as much as $14,000 along with some unwelcome tax complexity.  Help from a local tax specialist could help.