June 30 Tax Deadline is Looming for Non-Residents

An important deadline is approaching for non-residents with certain Canadian-source income. June 30 is the deadline to file elected returns under Section 216 (pertaining to rental income) and Section 217 (pertaining to Canadian source pension income). There may be significant consequences for missing this deadline as returns received after this date, generally aren’t accepted. Here’s what you need to know:

According to a recent report from Statistics Canada relating to enterprises in the first quarter of 2021, there are many businesses thriving in spite of the pandemic. Consider the financial sector which recorded an increase in net income of 11% before taxes, or $3.9 billion. Tax professionals can provide essential front line services to help small business owners thrive and now two new educational opportunities provide credentials and confidence to do so.  

The June 15 proprietorship filing deadline is coming up fast, and so is tax audit season right behind that. This year, business owners may find their affairs under CRA’s magnifying glass; particularly if they claimed the CEWS and the CERS. An interesting change in the April 19, 2021 budget will make this process even more daunting.

Looking for new professional development and networking opportunities?  Knowledge Bureau was proud to engage students in two outstanding events on May 26 and 27.  Here is a synopsis of what you missed to inspire you to mark your calendar as we unveil new complimentary and fun events – stay tuned for details!

There’s good news for Canadian families with young children: the first Canada Child Benefit Young Child Supplement (CCBYCS) payments will be issued later this month on May 28. The CCBYCS was initially proposed in the November 2020 Fall Economic Statement to help families cope financially during the pandemic. It received Royal Assent on May 6. Here’s how it works:

TFSA Advantages are back in the news. The CRA has issued a warning about a tax scheme that promises a tax-free opportunity to transfer funds out of an RRSP or RRIF into a TFSA, without regard to the annual TFSA contribution limit using an MIC. That is, a special-purpose mortgage investment company. Sophisticated investors with large RRSP or RRIF balances and significant equity in a personal residence were targeted and could soon be subject to audit. The scheme worked like this:

The stock market has been hot this year, and some investors have been cashing in. Dispositions in non-registered accounts will be taxable and in the case of securities, that can be complex.  Advisors who can illustrate the tax consequences with simple examples will add much-appreciated value. In this first of a series on capital gains and losses, we provide illustrations to assist in conversations, excerpted from the new Advanced Retirement and Estate Planning Course.