Investigative Tax Prep:  Top Ten Changes to Probe

Tax season 2025 has started with a focus on the increased income levels some taxpayers may report due to proposed changes in capital gains tax laws.  But aside from this there are new questions to probe with clients to ensure the family’s tax returns are filed to their very best benefit, given change in their life and financial events as well.  Here are top 10 queries to add to your interview checklist:

It is so important for tax and financial advisors to help distill fears and knee-jerk reactions in light of the April 16 Federal Budget.  Join members of the Society of Real Wealth Managers on May 7 at Noon CT for a frank discussion and open forum online, about the need for tax literacy and a multi-stakeholder approach to intergenerational wealth management that pushes back on the fear factor.

The April 16 Federal Budget proved once more that one of the most important skills people working in the financial services can offer is a deepened knowledge of personal, corporate and trust filing requirements. This is an essential financial service to help households navigate the increasingly broad – and expensive - reach of the CRA, especially for investors and business owners.  Knowledge Bureau’s suite of newly updated certificate tax, bookkeeping and retirement planning courses are now available online, together with a special offer.  Course benefits and descriptions follow:

Governments are long on promises but short of money these days, as deficits grow both provincially and federally.  Will prior tax preferences be maintained in the next federal budget, or will they be clawed back?  Here are some provisions worth watching:

CRA may be taking a closer look at interest deductibility costs now that interest rates are higher and that line item on the tax return contains bigger numbers.  Tax deductible interest paid on money borrowed to earn investment or business income  must be justified with back up documentation that includes the demonstration of use of the funds, which is always more complicated with a line of credit, for example, has mixed personal and business/investment uses.  Here is what you need to know: 

Did you know that 93% of Canadians voluntarily participate in the tax system, with 90% filing on time every year?  Not only that but 91% of Canadians pay their tax liabilities on time.  Recently the trust factor has been declining according to CRA’s performance indicators and, with the faulty implementation of two new taxation regimes in Canada, there have been calls for accountability in CRA procedures.  However, this may be somewhat unfair to CRA, as tax law-making begins with the Federal Budget; the next one on April 16.  Here’s what’s at stake:

Tax, accounting and financial advisors who have deep and broad knowledge about tax efficient retirement income planning, starting with the options available to defer the OAS and CPP pension can provide a valuable added service to a broad base of clients in all three stages of retirement:  pre-retirement, the “in-retirement” period and post-retirement, when survivors seek clarity about survivor benefits.  And there is a wide knowledge gap, as discussed below. For these reasons receiving a professional certificate on the completion of the Knowledge Bureau’s Tax Efficient Retirement Income Planning course is an important investment.