Start Tax Season 2025 on Sound Footing

Filing a tax return is difficult as the playing field is one of constant change:  the tax rules are in flux, particularly in the 2024 tax filing year,  with all the uncertainty around the capital gains provisions.  But in addition, taxpayers have undergone many financial and life event changes since their last T1 filings, each of which must be identified for each family member.  Here’s a primer for new year conversations between advisors and clients that cuts through the noise:  what matters is what you keep!

Would you like to earn the coveted FDFS™ designation?  These Distinguished Fellows are honored for their distinguished services as influential thought leaders, who have demonstrated a commitment to the noble cause of teaching and writing by engaging others in the high standards of knowledge they share. In doing so, they have also demonstrated an extraordinary commitment to shaping the future of the tax, accounting and financial services industries. Here’s how you can get involved:

The legislation to implement the Canadian Entrepreneur Incentive (CEI) was released on August 12 and while the provision has been improved from its debut in the April 16 federal budget, its effectiveness in offsetting the negative effects of the capital gains inclusion rate increases when an entrepreneur sells the shares of the company, may still be muted.   The reality of the journey to a successful disposition is fraught with risk, as businesses are opening and closing at unprecedented rates. Another major flaw according to the CFIB, is the long list of entrepreneurs in important industries, who are still excluded.    

The technical details for the significant tax changes arising out of the April 16 Federal Budget regarding changes to the Capital Gains Inclusion Rate (CGIR) that took effect on June 25, 2024 were  finally released on August 12, absent explanatory notes or even a table of contents, although a Backgrounder issued on June 10.  The announcement provides for a brief consultation period with a deadline of September 3.  Join us for a technical course on the matter from an audit defence perspective in our virtual CE Savvy Summit on September 18. In the meantime, a perusal of the legislation has identified significant updates throughout the Income Tax Act.

The government has invested in the Canada Revenue Agency because it brings great returns.  Consider the results in the latest CRA Departmental Report, described below.  Then, consider the additional powers and money behind them granted to the department in the latest federal budget and in particular the concerning new provisions that introduce a Notice of Non-Compliance into the mix.

Knowledge Bureau is pleased to introduce a new Diploma in Advanced Family Tax Compliance.  This comprehensive program is ideal for experienced tax accountants and wealth advisors who require updating in the latest  tax and economic changes from Finance Canada and CRA in order to help clients meet tax filing compliance requirements and family wealth planning objectives.  The program comprises of four online courses, 5 chapters each, and 4 virtual CE Summit events.

Studies have shown that advisors typically spend upwards of 30% of their time in any given week dealing with client investments (re-balancing, trades, compliance, admin). What would it mean for you if you suddenly recaptured a third of your week? Image the savings in time and money if you could reduce overhead or re-assign staff to more productive work! In this impactful session with Michael van Lierop and sponsored by New Outlook Wealth,  learn how to earn the Freedom Dividend only at the 2024 Acuity Conference for Distinguished Advisors November 10-12 in Montreal.