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. 

Governments are long on promises but short of money these days, as deficits grow both provincially and federally.  Will prior tax preferences be maintained in the next federal budget, or will they be clawed back?  Here are some provisions worth watching:

CRA may be taking a closer look at interest deductibility costs now that interest rates are higher and that line item on the tax return contains bigger numbers.  Tax deductible interest paid on money borrowed to earn investment or business income  must be justified with back up documentation that includes the demonstration of use of the funds, which is always more complicated with a line of credit, for example, has mixed personal and business/investment uses.  Here is what you need to know: 

Did you know that 93% of Canadians voluntarily participate in the tax system, with 90% filing on time every year?  Not only that but 91% of Canadians pay their tax liabilities on time.  Recently the trust factor has been declining according to CRA’s performance indicators and, with the faulty implementation of two new taxation regimes in Canada, there have been calls for accountability in CRA procedures.  However, this may be somewhat unfair to CRA, as tax law-making begins with the Federal Budget; the next one on April 16.  Here’s what’s at stake:

Tax, accounting and financial advisors who have deep and broad knowledge about tax efficient retirement income planning, starting with the options available to defer the OAS and CPP pension can provide a valuable added service to a broad base of clients in all three stages of retirement:  pre-retirement, the “in-retirement” period and post-retirement, when survivors seek clarity about survivor benefits.  And there is a wide knowledge gap, as discussed below. For these reasons receiving a professional certificate on the completion of the Knowledge Bureau’s Tax Efficient Retirement Income Planning course is an important investment. 

The Acuity Conference for Distinguished Advisors (DAC) takes place November 10-12 in Montreal, Quebec and we are pleased to welcome the thought leadership of many returning education partners to the stage. The speakers from these organizations are ready to wow the highly-engaged audience at the only multi-disciplinary conference for professionals in the tax, accounting and financial services. Register or partner with us by the June 30 early-bird deadline to save on delegate and sponsorship fees.

Now you can earn 20 life credits with AIC along with 30 KB, 30 life credits with ICM, 20 CIRO PD, and 20 MFDA and lead a collaborative team of professionals and help your clients accumulate, grow, preserve and transition sustainable wealth The RWM™ credentials signify comprehensive training in delivering holistic wealth management service. Want to learn more about the RWM™ approach? Register now to join us at a complimentary live-virtual event on May 7, hosted by practicing Real Wealth Managers™ and outstanding thought leaders, and explore an interactive online Orientation.