Mark Your Calendar: Critical Deadlines for May and June

Tax season never truly ends, it seems, as there are many more upcoming tax filing, investment planning and education milestones to discuss with your clients over the next six months. Check out our handy checklist below and then test yourself – what are the conversation openers you’ll use and with which clients? It’s your opportunity to shine with every member of the household:

Knowledge Bureau’s September poll asked your opinion about the potential for a 2% tax hike on incomes over the top tax bracket to help pay down the post-pandemic debt.  The vote was decisive with 43% for the hike, and 57% against, and the comments on such a reform of the tax system were interesting and definitive. Here’s what advisors across Canada advocated for:

New business owners often have difficulty managing their shareholder loan account, mistaking it for a tax free way to access funds. For these reasons, it’s a good idea to advisors to review what this account is and how it functions. Here’s a primer from Knowledge Bureau’s MFA™-Corporate Tax Services Specialist Program:

Tax year 2021 may represent the year millions of Canadians made a significant career shift and with that comes a new tax filing profile. Astute tax advisors will make it their business to consult with clients early, especially if new employment and self-employment trends hold true in their communities.

Are you working with small business owners who have received pandemic wage or rent supports?  Knowledge Bureau’s new Audit Defence: Managing Tax Risk for Small Business Owners is an online certificate course that helps advisors position small business owners for success for potential tax audits in 2021- 2023 with a concise pathway to navigate the complex rules and comprehensive documentation they will need to satisfy queries from clients and manage risk with the CRA.

At a time when many have lost their health, suffered the loss of their loved ones, their livelihoods and/or the exhaustion that threatens their resolve, we give thanks for the spirit of human resilience and kindness that emerges in every crisis.  It is important to remember that no matter how dark the clouds, we only need to get through the challenges of today to bring forward the bright promise of an incredibly vibrant tomorrow.  

Have you ever tried to explain the definition of earned income for RRSP purposes to a new client?  It is a daunting but important task, as clients who embrace the annual savings ritual can and will accumulate significant tax savings and as a by-product, significant financial wealth.   However, the astute tax or financial advisor, in the role of financial educator, can make all the difference in the end results.