Podcast: Automatic Tax Filing - Will It Work?

Last week Taxpayers' Ombudsperson François Boileau  tabled his annual report:  In Pursuit of Better Service: Taxpayers Deserve More.  once again, it was nothing short of scathing, as CRA received its highest number of complaints in the last three years.  Calling our “completely nuts” Income Tax Act a potential barrier, he is nonetheless pushing for automatic tax filing as a potential solution.  A new episode of Real Tax News with Evelyn Jacks & Friends available next week, will feature guest Gillian Petit, Ph.D. - author of a great report, Welcome News for Lower-Income Canadians, but There’s More to Do - which takes a deeper dive.  Consider the following:

Tax and financial advisor,  now is the time to help your clients set their new year goals: and here’s a 2021 tax filing and investment planning milestones checklist to help with the process.

Now is the right time to plan your professional development opportunities and earn CE credits in 2021. Explore your options with our new interactive Calendar of Educational Events 2021 and reserve your time to get your world class financial education in place.

There are many definitions of income on the tax return and understanding them makes a big difference in your relationship with the CRA, as many CERB recipients have recently found out.  Over 440,000 “education letters” have been sent to recipients warning of repayment requirements before the end of the year. It continues to beg the question:  what exactly is the definition of “income”?

Last week, we discussed the pros and cons of continuing to contribute to the CPP when compared to a TFSA instead.  This week, we discuss planning opportunities for taxpayers under and over age 65.

Since 2009, the government has worked to create a new Employee Life and Health Trust to replace Health and Welfare Trusts.  Last month, new rules were proposed to allow for the transition of Health and Welfare Trusts and permit for the rollover of assets, so that one set of rules can be applied to both. In addition, new “designated employee benefits” and relaxed restrictions for “Key Employees” were introduced.   An overview follows:

The results of our November poll were sobering; after a neck-in-neck race with opinions divided, 50.29% of professionals in the tax and financial services answered “no” when we asked if they thought their business clients would be able to make ends meet before year-end.