As a responsible taxpayer, we have to know the current federal tax brackets and which tax rate applies to you. In this way, we will be able to have an idea just how much of our income goes to taxes – which is a lot if you don’t have a tax plan in place (and that’s a topic we will discuss in another blog…).Federal tax rates for 2019:• 15% on the first $47,630 of taxable income• 20.5% on taxable income over $47,630 up to $95,259• 26% on taxable income over $95,259 up to $147,667• 29% on taxable income over $147,667 up...

For most individuals, the deadline to file their 2018 tax return and to pay any amounts due is April 30, 2019.For the self-employed: For those who are self-employed or who have a spouse or common-law partner who is self-employed, the deadline to file your 2018 tax return is June 15, 2019. But since June 15, 2019 is a Saturday, the CRA will consider your tax return filed on time if it is received or postmarked no later than June 17, 2019.Even if you are self-employed and not required to file your tax return until June 15th, you must pay any amounts...

Have you received salary overpayments due to a system, administrative or clerical error including the errors made through the Phoenix Pay System? This year, the Government is proposing new measures to support employees who must reimburse a salary overpayment to their employers due to errors. Under current rules, any employee who received an overpayment in a previous year is required to pay back the gross amount of this overpayment to their employer. The employee must recover the excess income tax from CRA, CPP contributions and EI premiums that were deducted by their employer when the overpayment was made. Obviously, this has...

This January 2019, the Department of Finance Canada has launched public consultations on open banking. According to the Department of Finance, open banking has potential to offer a secure way for Canadians individuals and small businesses to consent to sharing their financial transaction data with other financial service providers, thus allowing them to access a broader range of financial products and services. The Government wants to get feedback and input on the following:- Would open banking provide meaningful benefits to and improve outcomes for Canadians? In what ways?- In order for Canadians to feel confident in an open banking system, how...

The Federal Government recently announced the income tax deduction limits and expense benefit rates that will be applied this 2019 for businesses that use an automobile. Note that most of the limits that were applied in 2019 will continue to be applied in 2019. However, there are 2 changes that will be applied this year.1. The limit on the deduction of tax-exempt allowances that are paid by employers to employees who use their personal vehicle for business purposes in 2019 has increased by 3 cents to 58 cents per kilometer for the first 5,000 kilometers driven, and to 52 cents per...

Starting 2019, the Federal government will levy fossil fuels of $20 per tonne of greenhouse gas emissions. The Federal government released details on how direct proceeds from carbon pollution pricing under the federal system will be returned to the province or territory. • For jurisdictions that have adopted the federal system, direct proceeds will be returned directly to the governments of those jurisdictions. • For those provinces that do not meet the federal standard such as Ontario, New Brunswick, Manitoba and Saskatchewan, the majority of the fuel charge proceeds will be returned through the new Climate Action Incentive payments to residents...

Here are the other tax changes that have taken effect this year:• Canada Pension Plan contribution rates will rise over seven years starting January 2019. Please read our blog series about this change here: CPP Enhancement Starting 2019 Part 1, CPP Enhancement Starting 2019 Part 2• The Federal government will levy a tax on fossil fuels of $20 per tonne of greenhouse gas emissions starting in 2019 and rising by $10 each year to $50 a tonne by 2022 in provinces that don’t have carbon pricing mechanisms of their own. In provinces where this will be imposed, the cost of a...

In our last blog, we mentioned the following tax changes to expect in 2019. • Further reduction of the Small Business Tax Rate from 10% to 9. • Replacement of the Working Income Tax Benefit with the Canada Workers Benefit. In this blog, we would like to focus on the key tax measures that took effect this 2019 for businesses. • As mentioned, the Small Business Tax Rate has been reduced to 9% this year. Note that the new Alberta Small Business Rate (up to $500,000) is now 11%. • The taxation of non-eligible dividends (generally distributed from corporate income taxed...

Here’s what to expect in 2019:- Small Business Tax Rate: Last January 1st, 2018, the federal government cut the small business rate from 10.5% to 10%. Starting January 1st, 2019, there will be a further reduction of the small business tax rate to 9%. Because of this tax rate cut, the combined federal-provincial-territorial average income tax rate for small businesses will be 12.2%. - Replacement of the Working Income Tax Benefit: Starting 2019, the Canada Workers Benefit will replace the Working Income Tax Benefit. According to the federal government, the CWB will put more money in the pockets of low-income workers...

Highlights of the 2017-2018 Annual ReportHere are the key highlights of the Taxpayers’ Ombudsman’s 2017-2018 Annual Report: - New complaints received: 1,922 (up 29% from previous fiscal year)- Issues closed: 2,255 (Up 40% from previous fiscal year)- Two systematic examinations were completed. The Ombudsman recommended the CRA improve its efforts to ensure the timeliness of its response for the Taxpayer Relief Program and that all persons in shelters receive their benefits. According to this report, the most common areas of complaints are: - Delays in processing individual income tax returns;- Lack of clarity in the information received from the CRA regarding...