Canada Needs a Financial Plan

According to a July 23 publication by the Fraser Institute, we are getting poorer here in Canada and the prospects for economic growth are looking grim.  This should be of concern to every Canadian concerned about their “real income” – that’s their purchasing power – and by extension - their ability to fund consumption now and for important family milestones in the future:  retirements, education and homeownership.  It’s grim, but there are practical suggestions for a turn around plan. Here’s a synopsis of the report.   

Do you have complex tax questions difficult to find on the CRA website?  Are you too busy for long wait times on the phone with CRA?  At Knowledge Bureau we have a great solution to help you save time and money and answer more tax questions from your clients with confidence.  Plus, it links directly to all pertinent CRA forms, guides, folios, the Income Tax Act and much more!

Trouble finding qualified help for tax season?  Canada’s most comprehensive and popular advanced personal tax update is now taking registrations for the January 19 Virtual event featuring what our delegate call the “Tax Bible” – the comprehensive desk top reference coveted by tax and accounting professionals from coast to coast.  Train new and returning  staff in a new and improved hybrid live and online course that will help you to shake out the cobwebs and drill down on the detailed tax theory  or “dark horses” as well as all news from CRA and Finance Canada for filing 2021 tax returns.   Register by December 15 and receive a free lunch!

Canada’s personal amounts and benefits will increase by 2.4% for 2022, a significant jump over past years’ rates. Canadians can now earn more before reaching the top of their tax brackets and benefit from higher income testing thresholds, too. This is a great trigger for planning, particularly for retirees. But here’s the bad news: this indexation rate does not come close to the recent rise in the cost of food, transportation and shelter. 

The new tax filing rules starting November 2021 affect certain types of trusts, specifically express trusts and non-resident trusts.  Trust returns will need to be filed for tax years ending December 31, 2021 by the tax filing deadline of March 31, 2022.  Highlights on what these trusts are used for follows:   

A recent study by the Canadian Institute of Actuaries sheds new light on the needs of Canadian retirees and pre-retirees for sound financial planning for their futures. COVID has had a dramatic effect on retirement plans, overall health and on preparedness for long-term care in the future. Surprisingly, more than half do not have a financial plan for retirement. This is an important time for astute tax and financial advisors to work more proactively with new and returning clients. Six planning tips follow.

Many proprietors in the tax industry are struggling to find qualified staff prepared for a complex 2022 tax season, and it’s coming up fast. Now is the time to train new and returning staff for filing season, and for Black Friday we’re extending our best offer of the year: only $395 per course (save 56%) when you enrol yourself or your team members in Basic Bookkeeping in a Digital World or Professional Income Tax Course – Entry Level certificate courses. Our goal is to help business owners prepare for another unprecedented filing season. As loyal Knowledge Bureau Report readers, you have an exclusive opportunity to take advantage of this training opportunity first.