Red Ink on the Prairies

A day after Quebec’s Finance Minister Eric Girard brought down a Budget featuring a $6.3 Billion deficit, Saskatchewan’s Finance Minister Jim Reiter tabled his government’s budget on March 19. Next up was Finance Minister Adrian Salas, who tabled the Manitoba Budget on March 24. The common thread: there’s lots of red ink on the Prairies. But that’s where the budget documents differ between Manitoba and Saskatchewan. Here’s the latest tax news and why it matters to the advice you give your clients.

Employee stock options can help companies attract and retain talented employees by providing a supplementary source of compensation that is linked to the future success of the company. Current tax rules provide a preferential personal income tax treatment in the form of a stock option deduction, which effectively tax stock option income like capital gains. But that’s about to change, and advisors working with HNW executives need to come up to speed.

There have been several new tax and economic developments on climate change this month. Statistics on the Climate Action Incentive (CAI) payments became available, Albertans repealed their provincial carbon levy and the Final Report from the Expert Panel on Sustainable Finance was released.

For executives who are compensated in part with stock options, mid-summer tax planning will be especially important this year. The Notice of Ways and Means Motion, introducing draft legislation to implement a $200,000 limitation to the stock options deduction will take effect in 2020 for employees of large, mature, public companies. If your client is an executive in one, it’s important to schedule a tax planning discussion.

We’ve rarely been as excited as we are this year for the Distinguished Advisor Conference, and this is largely due to the incredible agenda, speakers, sponsors and networking activities we’re proud to share with you. Plus, you’ll save $100 on tuition fees if you register this month.

Knowledge Bureau designate Kristin Ramlal is a graduate of the RWM™ program, Distinguished Advisor Conference speaker, and a founding member of the new Society of Real Wealth Managers™. Her commitment to education is inspiring! Here is her story:

Summertime is a great time to invest in your professional development, and Knowledge Bureau’s new Ez-Pay installment options make it easier than ever to get started.