Bill C-31: Royal Asset and New CRA Powers Could Come Soon

Changes are coming to the Income Tax Act and both you and your clients will all be affected with new tax risks including longer tax audits. Bill C-31, which passed second reading in the House of Commons on June 3 and is now at committee stage, contains elements of previous Federal Budgets that will expand the CRA’s compliance and enforcement powers. Here’s what you need to know and pass along to your clients:

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Just over a week to go until the 2024 Acuity Conference for Distinguished Advisors in Montreal, November 10 – 12,  and we would like to recognize and bring special honour to the distinguished sponsors who have helped to make this year’s conference in Montreal an event to remember! Learn more about each of the organizations partnering with us for Acuity 2024 on our Sponsor page and browse their thought leadership sessions in the detailed agenda.

Canada’s inflation target is now back to 2%, resulting in a half a point cut to the Bank of Canada’s benchmark rate t to 3.7% from 4.25% this week.  That’s good news for those managing or acquiring debt, and for spouses wishing to do some investment income splitting in the new year. This is especially important now that each individual has a $250,000 threshold for claiming capital gains at a 50% inclusion rate.   Here’s how it works:

Do you prepare and file information slips for clients? If so, make sure to include an early December 2nd closure of electronic services in your scheduling. Slips that are filed late or using the incorrect method will result in financial penalties to your business. The hard stop will be December 1st  and services will not reopen until January 13th, 2025. In addition to the earlier shut down, information returns filed after January 1, 2024, containing five or more slips must be filed electronically.

October 15 was the date that eligible Canadians receive the Canada Carbon Rebate (CCR).  Did you miss it?  There may be several reasons for this:  you didn’t meet age or residency requirements, you don’t live in an eligible province or you missed filing a tax return.  Here’s how to make sure you get what you are entitled to set up for the next payment in January:

This month the Finance Department announced changes for lenders and insurers to make mortgages available for those who want to build secondary suites on their properties.  This provides a good reason to discuss year end tax planning relating to real estate assets,  as the loans will be available on January 15, 2025.  Here’s what borrowers need to know: