Income Tax Fundamentals - Tax Reforms Span 160 Years

What date was the Income Tax Act introduced?  When was the first federal sales tax in Canada?  In what year did Canada introduce withholding taxes? From the time of the first recorded tax in Canada in 1650, the Canadian tax system has undergone over two dozen major tax reforms.   With an election on the horizon, and tax reform a priority for many professionals, it’s a good time to brush up on some tax reform history.

Do you know why we celebrate St. Patrick’s Day as a day of luck and good fortune? We’re pleased to share some fun facts and folklore about the luck o’ the Irish and extend a lucky charm to you: a special tuition offer.

New from Knowledge Bureau: Join the Society of Real Wealth Managers™.  It’s a national network of financial specialists who enable peace of mind by taking a multi-stakeholder approach to family wealth management.  Professional collaboration is so important in uncertain financial times. Become a charter member at an introductory fee, upskill and get connected today.

At 8 pages, the 2019 T1 return is the longest tax form in history.  It could also be the most complex, says Evelyn Jacks, President of Knowledge Bureau. With tax season beginning, professionals who are not yet familiar need to learn about the changes to the forms, line numbers and the detailed legislation behind them. 

It all takes much too long: that’s the message the Taxpayer’s Ombudsman had for the CRA with the release of report that culminated in 15 recommendations focused on cutting incredibly long wait times for tax assessments and adjustments. What’s considered too long? Taxpayers, professionals, CRA and the Ombudsman appear to have very divergent views.

The CRA started E-filing transmission services on Monday, February 24 which means tax refunds should be flowing soon for millions of tax filers. This tax season features a new 8-page tax return and a complete change to the line numbering system throughout the return. Plus, coming in March there’s the introduction of Charlie to Chatbot who will answer general tax filing questions. But are you clear about when you must file? Many Canadians are not.

Statistics released on February 14, 2020 by the Canadian Real Estate Association (CREA) show that national home sales declined by 2.9% between December 2019 and January 2020, but prices are poised to rise later in the year.  This could therefore be a good time to buy that first home, especially with the help of the enhanced RRSP Home Buyers’ Plan.  For these reasons, some of your clients may still be interested in topping up their plans before March 2 RRSP contribution deadline.