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. 

Provincial Budget Season continues, and while the Yukon Territories had no new income tax measures to announce on March 2, Manitoba made a seismic shift, introducing significant personal tax cuts in their March 7 budget. Specifically, the Basic Personal Amount increased 38% to match the federal amount of $15,000 in 2023. If passed, the budget will bring inflation-fighting relief to Manitobans who will see reduced withholding taxes starting July 1. Further, tax brackets will move up 27.5% in the lowest tax bracket and 25.5% in the middle tax bracket in 2024.  Details below:

In the financial industry in Canada, we are fortunate to see an increasing number of women joining the industry, relative to other sectors, where the women and men are starting their careers at parity. However, men have historically been the beneficiaries of more career promotions, rising to the top faster than women, despite studies showing that women leaders create higher employee retention, increased engagement, and productivity within organizations.  There may be several reasons for this dilemma, including:

After eight consecutive rate hikes, the Bank of Canada held its key interest rate at 4.5% on March 8, as the Canadian economy appears to be on track for an inflation rate near 3% by the summer. That’s really good news for worried borrowers, in particular small business owners, who, according a CFIB survey, continue to be burdened by rising costs of running their businesses. A key issue this month for those with a side hustle is the cash flow crunch fueled by tax debt. Tax professionals can be important advocates.

The theme of this year’s International Women’s Day on March 8th is #EmbraceEquity.  It is an attempt to address the fact that Equality is not the same as Equity.  Especially for women.  Equality means each individual or group of people is given the same resources or opportunities. Equity recognizes that each person has different circumstances, and allocates resources and opportunities needed to reach an equal outcome.

Knowledge Bureau has introduced a brand new education tool tax and financial advisors can use with clients this tax and budget season, which may be of particular interest to newcomers to Canada and young new Canadians entering the workforce. The Finding Financial Freedom Collection is ideal – and a great gift - for anyone looking to improve their financial literacy and gain an understanding of the important role that income tax plays on financial health.

An incorrect approach to the technical side of payroll poses a risk to both employers and their employees: it can cost them money, cause them to incur penalties with the Canada Revenue Agency (CRA) or worse, face legal ramifications. Especially at this time of year (tax time) the pressure is on.