Fuel Excise Tax on Hold But Inflation is Not

The U.S.-Israel war on Iran has thrown global oil prices into turmoil and there is plenty of fallout for consumers. Travelling to Europe this summer? That’s in jeopardy, as jet fuel may run out.  Looking for relief at the pumps instead? The recently announced suspended federal excise tax on gasoline, unleaded aviation gasoline, diesel fuel and aviation fuel here in Canada will soften the blow, but only temporarily: it will be zero from April 20 to September 7, 2026. Here’s what you need to know:

Knowledge Bureau’s Annual Personal Tax Bootcamp is coming soon: in six cities across Canada: January 17-25, 2017. Registrants are urged to reserve their spots early as seating is limited, and to take advantage of early-bird tuition reductions until January 10.

"Life is 10% what happens to you and 90% how you react to it." Charles R. Swindoll

Taxpayers who are subject to clawbacks of EI, OAS or personal amounts, have marginal tax rates that are significantly higher than other taxpayers at the same income levels.  When planning income levels in retirement, these inflated marginal tax rates need to be avoided whenever possible.

Global wealth has increased by 1.4%, but net worth per adult has remained relatively unchanged in 2016, according to a new Global Wealth Report, by the Credit Suisse Research Institute. The net worth per adult has risen 67% since 2000; however, this growth rate flattened out in the period 2008 to 2016.

The Auditor General for Canada has recently issued a report on CRA’s appeal process, focusing on whether CRA has been efficient in managing income tax objections.

Highly qualified tax advisors are in high demand, not only by their clients but by financial advisors who seek their services and advice.  But, especially if your clients are Boomers, it’s important to move past basic tax preparation knowledge to confidently address the complicated year-end tax planning issues they may face on their investments and properties.