Canada Needs a Financial Plan

According to a July 23 publication by the Fraser Institute, we are getting poorer here in Canada and the prospects for economic growth are looking grim.  This should be of concern to every Canadian concerned about their “real income” – that’s their purchasing power – and by extension - their ability to fund consumption now and for important family milestones in the future:  retirements, education and homeownership.  It’s grim, but there are practical suggestions for a turn around plan. Here’s a synopsis of the report.   

The prescribed interest rates set by CRA for the third quarter of 2017, July to September, have followed recent trends: there are no changes for the period except for a new 4.47% rate on an election made by foreign corporations regarding PLOIs, Pertinent Loans Or Indebtedness.

On June 22, 2017, Budget Implementation Act, 2017, No 1 received Royal Assent and is now law. 

The penalties have been huge on the over 21,000 files CRA has audited from April 2015 to March 2017: over 885 penalties totalling $17 Million were applied on close to $330 Million in unreported income, mostly in the Toronto and Vancouver markets.

As we approach July 1 and the Canada 150 celebrations, most Canadians who were due to receive a tax refund for the 2016 tax year would have received the funds by now. Be sure to suggest to your clients that they give themselves a big Canada Day gift by using those funds to top up their TFSA.

In the months leading up to Canada’s sesquicentennial celebrations, Canadians have been encouraged to get out and explore our great country. And DAC 2017 presents the perfect opportunity for you to head west this November!

“Just because you’re good at what you do doesn’t mean that people are going to want to be on a team with you.” – Marnie McBean