The Importance of Provincial Budgets: Elbows Up and No Bracket Creep!

Some of the right things are happening in Nova Scotia, from the perspective of improving standards of living in that province.  And that’s important news because according to the Fraser Institute, Canadians have suffered the worst five-year decline in their standard of living over the 2020-to-2024 period since the Great Depression.  It notes, our Gross Domestic Product (GDP) per person decreased by 2.0% (0.4% annually) ; this despite aggregate GDP growth of 1.5% over the period.  Further, all ten provinces are experiencing stagnation, which is unique in our history.  So what’s the good news in Nova Scotia, at this critical juncture?

Did you know that employed commissioned salespeople can write off more tax deductions than other employees?  In fact, expense deductibility differs only slightly from that of the self employed. Yet, to get past a tax auditor, there are special nuances:  employers must be prepared to verify unreimbursed, out-of-pocket costs were required and there are some specific restrictions. Details follow.

Last year, those who owed the CRA owed a lot – over $7,000. Soon, the prescribed interest rates charged by CRA are going up and that could really increase the cost of carrying debt. Tax debtors can save more money by paying up before April 1. Here’s why

Is it reportable or not?  Many taxpayers are confused about the various government support programs they have been entitled to in 2022 and 2023.  As a general rule, if a support payment is taxable, there will be a T4A or T4E showing the amount to be reported as income.  But if any of the amounts itemized below -  inflation support measures – were received, they won’t be reportable. 

It’s true: nothing is as certain as death, taxes and tax change!  That’s perhaps why almost 60% of Canadians get someone else to do their tax return, according the CRA.  Do you know what this sounds like to us? OPPORTUNITY! 

Did you know as many as 1 in 10 Canadians don't file their taxes?  Canadians who don't file their income tax returns may be shocked to find out how much money they're owed by the federal government for years of missed benefits.  The tax benefits lost to working-age non-filers was about $1.7 billion, according to an award winning research paper[1].

President and CEO of Knowledge Bureau, Evelyn Jacks, joins Derek Notman and H. Adam Holt on their podcast, Rethink. Financial Advice, and discusses a variety of issues critical to the future of the tax and financial services industry: what's on the horizon for advisors and how to best prepare for the headwinds affecting us all. You’ll want to take this in.