Elbows Up: The Time for Personal-Corporate Tax Reform is Now

One can’t avoid the messaging of the economic pain to come. Our deteriorating economic relationship with our biggest trading partner will require us to “pivot and prosper” in order to emerge “stronger and more resilient” says our Prime Minister. While exactly how we will do this is still unclear, there is one clear opportunity: for both federal and provincial governments to initiate a significant personal and corporate tax reform in the upcoming fall budget.

Canada has one of the largest projected demographic decreases in the OECD countries.  As the  oldest members of the baby boom generation are now reaching retirement age, Canada has passed a “demographic tipping point,” according to Finance Canada’s December 22, 2017, Update of Long-Term Fiscal Projections. This social sea change brings about a hot new trend in business consulting: accounting for business growth and transition.

Did you know that starting in the 2017 tax year, the federal government has introduced a new Canada Caregiver Credit (CCC)?  It replaces the Family Caregiver Tax Credit, the Caregiver Tax Credit, and the Credit for Infirm Dependants. But, it’s complicated!  Here, in our first tax tip of the new 2018 tax filing season, we offer you a few details:

In December, we asked Knowledge Bureau Report readers, “In your opinion, are tax and financial professionals taking the time to help clients understand the benefits of charitable giving?” In a surprising result, only 17 percent thought their peer group was spending enough time counselling their clients how to make donations in a tax-efficient way.

Should professional tax preparers and financial planners work with clients who are not tax compliant? If you are helping them to become compliant, then by all means work with them to set the record straight. But the answer is likely no, if it means that these professionals will open themselves up to the possibility of civil penalties. Here is a run-down of the rules every professional should know:

“Bitcoin Rush” is all over the news as speculators have tried to get in on the trend which saw skyrocketing values at the end of 2017. But there is a spoiler: gains on trading digital currencies like Bitcoins are subject to taxation in Canada, a liability that must be settled in real dollars.

This week the National Revenue Minister announced a new program called “File My Return” that will allow Canadians with low and fixed incomes to complete their returns over the phone.