There has been much discussion, in recent years, about whether Canadians are adequately prepared for retirement and, more specifically, whether Canadians are saving enough to ensure a retirement free of undue financial stress. While the financial health of current and soon-to-be-retirees is a concern, the more pressing question is whether, under our current system, younger Canadians can expect to have some degree of financial security in retirement.
The forest fires affecting Northern Alberta and the Canada’s Revenue Agency’s (CRA’s) offer of administrative tax relief to those affected by the fires and evacuations has highlighted a federal government program, which few taxpayers are aware – the CRA’s Taxpayer Relief Program. In a nutshell, that program offers relief from interest charges, penalties, and collection actions for those who are unable, due to circumstances outside their control, from fulfilling their tax filing and/or payment obligations.
By the beginning of June, most taxpayers have filed their annual return for the previous year and have most likely received a Notice of Assessment (NOA) for that return, containing the good or bad news about their tax situation for the year. At this point, most Canadians are probably happy to put taxes out of sight and out of mind until next year’s filing season rolls around. For a number of reasons, however, that’s not the best strategy.
The mid-point of the year is, in fact, a very good time to take a look at one’s current year tax situation, to determine whether things are on track for the year or, if not, how to make things right while there’s still time to do so. There are a few basic steps which require no more than a few hours’ time to make sure of just that.
As the end of the school year draws closer, and two months of summer holidays begin, families must start thinking about how to keep their kids supervised and busy throughout the summer months. Luckily, there is no shortage of options — at this time of year, advertisements for summer activities and summer camps abound — but nearly all the available options have one thing in common, and that is a price tag.
Some choices, like day camps provided by the local recreation authority, can be relatively inexpensive, while the cost of others, like summer-long residential camps or elite level sports or arts camps, can cost thousands of dollars.
By May 23, 2016, the Canada Revenue Agency (CRA) had processed just under 26 million individual income tax returns filed for the 2015 tax year. Of those returns, 56% resulted in a refund to the taxpayer, 18% required payment of a tax balance by the taxpayer and just over 20% were “nil” returns – returns where no tax is owing and no refund claimed, but the taxpayer is filing in order to provide income information which will be used to determine his or her eligibility for tax credit payments (such as the Canada Child Tax Benefit or the HST credit ).
The new Liberal government has proposed a few minor changes to personal income taxes for 2016 and beyond.
The election of a new government in Ottawa is often accompanied by changes to the way income is taxed. The last federal election was no exception. The changes announced in the March 2016 budget that will impact many taxpayers are as follows:
The last thing you want, when you incorporate your business, is for Canada Revenue Agency (CRA) to label you a personal services business (PSB). As stated in the Income Tax Act, and paraphrased in the Corporation Income Tax Guide, a PSB is defined as “a business that a corporation carries on to provide services to another entity, that an officer or employee of that entity would usually perform.”
In other words, if CRA determines an incorporated individual working as a contractor is really just an employee of the company they are working for, they would be deemed a personal services business. This designation comes at a great cost to the individual.
In recent years, there has been a great deal of public discussion about the availability and viability of federal income support programs for retirees. It’s not news that Canada’s population is aging, and the demands placed on government-sponsored retirement income programs will increase as greater numbers of Canadians reach the age at which they will be entitled to receive monthly benefit payments from those programs.
There are, essentially, three federal retirement income programs which are generally available to Canadians: the Canada Pension Plan (CPP), the Old Age Security (OAS) Program, and the Guaranteed Income Supplement (GIS) and Allowance.
