SMES: Carbon Tax Rebates on the Way?

July 15 was an important day for carbon-tax weary taxpayers. A Canada Carbon Rebate payment was  made to individuals who have filed their 2023 personal tax returns.  What about the long-awaited $2.5 billion Carbon Tax Rebate For Small Businesses? The delivery date and amounts to be received remain elusive, but one thing is clear: many businesses will have disqualified themselves by missing the July 15 date for filing 2023 T2 returns.  Here’s what you need to know. 

A detailed Notice of Ways and Means Motion (NWMM) outlining important changes to the Canadian tax system were introduced in the two weeks before the existing rules on capital gains inclusion end on June 24, 2024. The capital gains inclusion rate will be raised to 66 23% for corporations and trusts, as well as individuals with capital gains over $250,000, on or after June 25, 2024 if this NWMM passes into law.  The complexity it brings to tax filing in 2024 and future years, is evident in this draft legislation. For even more detail, subscribe to KBR and download our Special Report on Capital Gains Inclusion Rules.

In our last article on this subject, current tax rules on ESOPs were covered.  In the absence of proposed legislation that enables the federal government’s proposed increase in the Capital Gains Inclusion Rate (CGIR), recall that it is anticipated that if the individual’s total gains for the year exceed $250,000, two-thirds of gains over the $250,000 threshold would be included in income if they were generated after June 24, 2024.  Here’s a synopsis of the effect of this change on ESOPs to initiate discussions with business owners, key employees and tax advisors:

Knowledge Bureau is delighted to announce its categories of awards to be announced at the Acuity Conference for Distinguished Advisors (DAC) November 10 – 12 in Montreal.  The star-studded ceremony, being held at the exclusive St. James Club, will kick off the three day educational conference – Canada’s only multi-disciplinary conference, featuring 16 thought leaders who will focus on the theme,  Safe Havens: Secure Financial Futures & Wealth Potential.   To be announced at the end of June, the winners will be honored in the following categories:

The MFA-P™ has specialized professional credentials to enable high-value planning for individual or family legacies. In this dynamic program, learn to have highly satisfying conversations with clients sooner in your relationship, address their big fears: that gifts will not be used wisely or according to personal passions and wishes. Then, provide a consistent process for giving solutions with investments that are tax-efficient, during lifetime and as part of a personal or family legacy. Become a certified professional in the evolving field of philanthropy. Build trusting relationships with your clients and help them make a difference in the world through charitable giving as an MFA-P and save 15% until June 30 with code MFAP15.

Check out the recording of the live Meeting of the Minds session on June 5 featuring practicing members of the Society of Real Wealth Managers™ and learn more about how their collaborative family office approach helps clients make sound financial decisions. Panelist Joanne Thomas moved her business to another province, and used the RWM™ model and thinking outside of the box to connect with like-minded professionals in other areas of specialization to improve the value of services that are provided to her clients.  Register now for the Meeting of the Minds to access the event recording and hear Joanne tell her story and be sure to enrol in the Designation Program at a special tuition rate, only until June 30.

As a Distinguished Advisor, you know the importance of learning best practices and staying informed about the latest developments in the financial services industry.  Together, Canada's top publications for financial advisors - the 2024 Acuity Conference for Distinguished Advisors returning media sponsors -  will ensure you remain at the top of your game. Knowledge Bureau is pleased to welcome back Advisor.ca and Investment Executive as our media sponsors for Acuity 2024 in Montreal November 10-12. Learn more about them below: