Back to School Tax Breaks

Like tax season, back-to-school season rolls around annually with certainty. But in today’s inflationary environment, the start-up costs for getting the family organizing for the school year may seem daunting. The good news is that tax and financial advisors can help clients understand their tax planning options and manage all the receipts that can lead to tax breaks later in the spring during tax filing time. Here’s a primer of topics you may wish to discuss:

An outcry from Hollywood means Ontario will delay tax credit cuts.

The Notice of Ways and Means Motion and Explanatory Notes for the tax provisions of the April 21, 2015 Federal Budget were tabled on May 4, and contain the detail required to set up family tax and wealth planning strategies for the 2015, 2016 and future tax years as envisioned in this document.   

It appears that tax cheaters are having a bigger effect on economic activity than tax free savers, when the cost of raising TFSA limits are contrasted with the cost of lost tax revenues due to the Underground Economy (UE).

Courts generally have the power to award costs against unsuccessful parties. These cost awards can be more severe depending on the conduct of the parties, and they are, therefore, a great way to dissuade frivolous litigation.

Financial Planners and Tax Specialists, together with Owner-Managers of Canadian Controlled Private Corporations (CCPCs) will need to review the compensation and retirement planning arrangements currently in place to ensure they are not eroded by recent federal tax changes. 

In deciding which of the two tax preferred investment vehicles should be used for various lifecycle purposes – the TFSA or the RRSP - advisors and their clients should carefully consider all the advantages of investing in and withdrawing from each vehicle.