Advanced Income Tax Rulings

The federal government has taken steps recently to attract more investment in Canada. That’s sure to create some new tax questions that require Advanced Income Tax Rulings (AITR). A new measure to facilitate a faster response was announced on September 14 and is intended to attract business investment of large amounts. Specifically, for investments of $1 billion or more, the CRA will prioritize advance income tax rulings. The measure took effect the day it was announced. Here’s what you need to know:

Robbyn Swiscoski sings her praises of the T1 Professional Tax Preparation – Advanced Course

We hope that you’ve been enjoying the summer while you’ve been working away on your next designation, diploma or certificate. It’s our turn now to take a short break and get out into the sun!

Investors and day traders beware: CRA is looking to collect $75 Million in taxes and penalties due to mistakes investors are making in their TFSAs. What’s at stake is the possible repayment of most of the investment, once penalties and interest are factored in. However, taxpayers may have more rights than may appear at first glance.

According to the Bank of Canada, the record low for the Canadian dollar against the US dollar, since October 1950, was recorded on the January 21, 2002 — just over 15 years ago — when the loonie was worth just sixty-two cents. But there have been some rebounds lately; and this means for some, there may be a tax consequence.

As Canadians, we’re encouraged —conditioned even — for most of our working lives to save as much as we can for retirement in an RRSP and to take advantage of the resulting tax savings and deferral. It’s a great deal. So, what happens in retirement when your clients’ savings have exceeded expectations and are now taxable?

A demographic shift has been happening since 2000: the Canadian population continues to age and live longer, such that the number of seniors is becoming larger than the number of young people under 20, according to Statistics Canada. Financial advisors need to be concerned about the “new” Sandwich Generation.