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. 

Millions of Canadian investors and their advisors must prepare themselves for lower dividend distributions and those once or twice-in-a-lifetime financial events as a result of the new capital gains inclusion rate of 66 2/3 percent on gains over $250,000.  Larry Frostiak, FCPA, FCA, CFP, TEP, RWM™, FDFS™,  founding partner of Frostiak & Leslie Chartered Professional Accountants Inc.  will discuss the broad implications from a Year End Planning perspective at the Acuity Conference for Distinguished Advisors in Montreal November 10-12.  But in the meantime, the June 25 deadline fast approaches and critical conversations must take place, for the reasons outlined below:

Providing ESOPs is a way of helping start-up businesses to attract high-value employees despite their lack of capital to pay the larger salaries.  Because larger companies were using stock options as a form of compensation for higher-income employees effectively reducing the taxes paid by such employees, a limit was placed on the amount of stock options that were eligible for this treatment for employees of large companies. Now proposed changes to the Capital Gains Inclusion Rates (CGIRs) will make this even more complex.

A claim for home office expenses is common, but there are changes this year which are fraught with audit risk.  The simplified claim method in place for 2020, 2021 and 2022 tax filing years has ended and so the “detailed method” must be used.  The self employed have more latitude in claiming expenses but for employees a special tax trap is the claiming of supplies used up in the course of employment duties. Here’s what you need to know: 

Registering to take certificate courses under our Specialized Credentials Programs or Continuing Education including CE Savvy Summit passes and the Acuity Conference for Distinguished Advisors (DAC)?  Take advantage of tuition fee savings this month and find out more about our tuition fee payment options below:

June 25 is fast approaching, and advisors have an important role to play in ensuring that this trigger date for the higher inclusion rates will not unduly upset retirement and estate plans.  How can you help clients? This article focuses on 5 things to focus on when planning with your clients, and you can take a deeper dive with the CE Savvy™ Summits Advanced Retirement & Estate Planning Course. Register with a special enrolment offer until June 30 (save $100).

Check out the recording of the live Meeting of the Minds session 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. Our panel featured two team members from Fraser and Partners who shared how their focus on education and leveraging the multi-faceted skills of internal and external stakeholders adds value to the work they do with their clients. Learn more by registering now for the Meeting of the Minds and enrol in the Designation Program at a special tuition rate, only until June 30.