New Consultations: Modernizing Tax Rules for Charities

As the last remnants of a scrumptious Thanksgiving weekend subside, it is appropriate to take a look at the health and issues surrounding the charitable sector in Canada.  Serendipitously, the federal government is seeking your views on how the tax rules for registered charities and the Canada Revenue Agency’s (CRA) administration of these rules could be modernized.  A new consultation was launched on October 8 and here’s what the government wants to know, by December 3, 2026:

Families who wish to maximize the anticipated new Child Tax Benefit (CTB) for 2016/2017 have less than two weeks left to reduce 2015 net income using an RRSP contribution. The deadline is February 29. For these reasons, Knowledge Bureau has updated its Income Tax Estimator to assist with the calculations.

A tell-tale sign the federal budget is right around the corner was the February 12 meeting of the Finance Minister with private sector economists for their forecasts on the Canadian and global economies. This this year, a number of significant tax changes are expected, if the newly elected Liberal government’s election platforms are implemented.

On February 5, the Finance Minister announced that Canada and Switzerland have signed a Joint Declaration which will see the two countries exchange financial account information automatically. With this agreement, CRA expects to curb tax evasion by Canadian residents who earn income in Switzerland but do not report it on their Canadian tax returns.

CRA has released a newly revised 9-page form T657, which takes into account the increase of the Lifetime Capital Gains Deduction (LCGD) to $1 Million for Qualified Farming and Fishing Properties for dispositions after April 20, 2015 and to $813,600 for Qualified Small Business Corporation Shares for tax year 2015. It can safely be said this form is not for the faint of heart.

Cross border taxation is increasingly of interest to tax advisors and their clients, particularly if they are US citizens living in Canada. The cost to renounce US citizenship, for example, has recently increased to $2350; while challenges to tax filing compliance have failed, so far.

What’s important in building modern financial practices?  The top-rated speaker at the recent Distinguished Advisor Conference was someone who focused on the softer side of financial advice—peak performance coach, author, and speaker Craig Dowden, PhD – and his answer to the question was simple:  empathy.