The Importance of Provincial Budgets: Elbows Up and No Bracket Creep!
Some of the right things are happening in Nova Scotia, from the perspective of improving standards of living in that province. And that’s important news because according to the Fraser Institute, Canadians have suffered the worst five-year decline in their standard of living over the 2020-to-2024 period since the Great Depression. It notes, our Gross Domestic Product (GDP) per person decreased by 2.0% (0.4% annually) ; this despite aggregate GDP growth of 1.5% over the period. Further, all ten provinces are experiencing stagnation, which is unique in our history. So what’s the good news in Nova Scotia, at this critical juncture?Waiving Penalties Stemming from Payroll Audits
On occasion, a business will be selected for a review of their books and records by the CRA. This is called a payroll examination, and the goal is to ensure compliance with respect to deductions and remittances, for your payroll account.
Breaking News: Bank of Canada Increases Benchmark Interest Rate to 1%
In an anticipated move intended to help rein in inflation, the Bank of Canada announced an increase of the benchmark interest rate by half a percentage point to 1% this morning. It’s the biggest increase from the central bank in more than two decades.
The Fine Print Matters: New Tax Deductions for Employees
The April 7, 2022 Federal Budget introduced a new tax deduction for employees which will be in effect starting on January 1, 2022, assuming Royal Assent will be received. With the exception of some simplified filing opportunities, most employee deductions will require receipts and a signed tax form from the employer. It is expected this will be no different for the new Labour Mobility Deduction. Here are the details to know:
Surrogacy Costs: Parents to Receive Tax Credits
Paying a surrogate to bear a child is illegal in Canada. Yet, the Nova Scotia government recently introduced a new refundable tax credit for surrogacy-related medical expenses, a first in Canada. The federal government, too, proposed a similar provision in the April 7 Federal Budget, to provide for tax relief for reimbursements paid to the “patient”, the surrogate.
Interest Deductibility: Building Acquisitions
At a time when interest rates are rising, a more common question from investors in real estate may concern interest deductibility. When is the interest paid on a loan to finance a building or its construction, written off as an operating expense and when must it be capitalized? Most people are unaware of the latter option.
March 2022 Poll: Thumbs Up for RRSPs
Knowledge Bureau Report asked its national audience “Do you believe the RRSP is still a good investment for pre-retirees who work after age 60?” last month and the results were surprising, given all the rhetoric around the use of RRSPs. A full majority – 74% said yes, but with lots of qualifications. Here’s why:
