When a Bonus Comes with a Tax Bill

You probably don’t have any clients who have received a US$12.25 bonus. But that’s what Toronto Maple Leafs star John Tavares received when he signed with the club. In August, Tavares appeared  in court, to fight  an $8 million tax bill.  $1.2 million of that amount is interest which CRA says he  owes.

The Federal Budget has put an emphasis on positioning Canada for success in the innovation economy of tomorrow. With so many businesses poised to change hands soon, advisors must be thinking about preparing the next generation of leaders for the new economy, despite disruptive trends and significant tax changes. The continuity, and even survival, of these companies could depend on your help.

Valuable designation for every advisor: Margaret Hodgson, DFA - Tax Services Specialist™, Manitoba

“Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do. If you haven’t found it yet, keep looking. Don’t settle. As with all matters of the heart, you’ll know when you find it.” Steve Jobs

Manitobans were spared tax increases in the April 11, 2017, budget, but the breadth of change to its complicated and voluminous tax credit structure hints at more tax reforms to come.

It pays to hunt down medical expenses and claim them over the best 12-month period ending in the tax year. There are numerous out-of-pocket expenses that qualify, ranging from batteries for hearing aids to driveway alteration costs for disabled family members... and most tax payers miss them.

Giving to charity is a noble thing to do. From a tax viewpoint, it’s also the gift that keeps giving back. However, if you’re claiming charitable donations on this year’s return, you may notice new complexity. Check out our true-to-life scenarios and the tips that follow.