CRA Data Breeches Put Taxpayer Information at Risk

An important deadline is coming up, around the same time that Canadians get ready to file their 2026 tax returns at the start of tax season 2027. Since 2020, more than 42,000 data breaches have occurred at the CRA. A class action lawsuit was launched in 2020 and a $8.76 million settlement was reached.  Eligible Canadians affected by these security incidents can now submit claims through the KPMG Claims Portal until February 3, 2027.  

On Tuesday, the Loonie was worth $0.7657 US.  This is the highest value we’ve seen since September 23, 2016.  Sadly the dollar is still more than 30 down from January of 2013 when it was last on par with the US Dollar.  So what are the tax implications for investors of exchange rate fluctuations?

In communities where rental accommodation is scarce, more and more homeowners are building a second dwelling on their lot and renting out that “coach house” or “carriage house”.  Many have not thought about the tax consequences, though, and they could be complicated.  The key question:  will your tax exempt principal residence status be affected by this second dwelling?

It’s time to take note of the tax filing requirements and investment opportunities that arise in the first quarter of 2017:  January, February and March.  Investors making TFSA and RRSP contributions, as well as interest payments on inter-spousal loans are affected.  So are taxpayers who are making quarterly instalment tax remittances.

Submit your answer to the monthly DAC Canada150 financial trivia question to win a free registration to the Distinguished Advisor Conference in spectacular Kelowna, B.C., November 5 to 8.  At the end of each month one lucky person’s name will be entered to win the grand prize.

Hundreds of professional tax advisors are lining up to think with us at the annual Line-by-Line Tax Bootcamp and there is still time for you to come up to speed for tax season, network with great tax experts and  join the fun in Edmonton – January 19, Toronto – January 23, Ottawa – January 24 and Winnipeg – January 25.

After successfully completing your T1 Tax Preparation – Basic course, the next step is to move onto the advanced course T1 Professional Tax Preparation – Advanced.