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:

Manitoba has agreed to sign on for federal Canada Pension Plan reforms and that gives the required 2/3 approval by the provinces required for the federal plan to move forward.  Manitoba wanted emphasis on three key issues, discussed below, but the real issue to follow is this:  will this be enough to help middle class Canadians fund their retirements?

OAS rates are indexed quarterly based on changes to the Consumer Price Index.  Seniors, who have not seen a raise since January 1, will receive an additional $2.85 per month starting in July.  The Guaranteed Income Supplement (GIS) also increased by the same percentage.

Did you know that as of May 16, 2016, like individuals, corporations can now file Form T1135 Foreign Income Verification Statement, electronically?  EFILE has otherwise been allowed for the 2014 and subsequent taxation years for individuals. CRA will also make electronic filing possible for partnerships in the future, but they haven’t released a date yet.

Knowledge Bureau and Manulife are pleased to announce that Lindsay Sawyer Fay of E. Sawyer Financial in Winnipeg, Manitoba and Darren Ryan, a financial advisor with Ryco Financial in St. John’s, Newfoundland have been selected as the 2016 winners of The DAC Young Advisors Award.

More market volatility is certain in the aftermath of Brexit and in anticipation of the outcome of the US election.   If you really want to help people reach their financial goals, and avoid “bad behavior” because of volatility in the markets, you need to have a broader and more powerful set of tools.

As a result of recent corporate tax rate changes and adjustments to the taxation of dividends, one of the key issues faced by the owner/manager of a private business is how to best manage his or her compensation to maximize the amount of after-tax income available to the family.