On March 22, 2017 Finance Minister Bill Morneau presented his second Budget. The Budget focused on closing tax loopholes and cracking down on tax evasion. Briefly, here are some of the proposed new Personal Tax and Business Tax measures:
Personal Tax Measures
- New Canada Caregiver Credit will replace the Infirm Dependent Credit, Caregiver Credit and Family Caregiver Tax Credit
- Tuition Tax Credit will apply to occupational skills courses below post-secondary level at college or university
- Medical Expense Tax Credit will now include fertility-related expenses
- Public Transit Tax Credit will be eliminated effective June 30, 2017
- Disability Tax Credit eligibility can be certified by nurse practitioners
- First-Time Charitable Donor’s Tax Credit will expire after 2017
TAX TIP Did you know that effective April 1, 2017 Canada Revenue Agency CRA began formally recording the fingerprints of every person charged with tax evasion? This can create travel problems for accused tax evaders. The fingerprints will be recorded in the Canadian Police Information Centre database, accessible by police officers but also by some foreign agencies including U.S. Department of Homeland Security. Please contact us now for our many professional services to minimize your risk of costly errors.
Business Tax Measures
- Previous Budget 2016 committed to a government review of the tax system specifically addressing high-net-worth individuals who use private corporations to inappropriately reduce or defer tax. Budget 2017 has followed up on the results including (1) income sprinkling strategies, (2) passive investment portfolios inside private corporations and (3) converting regular income into capital gains inside a private corporation. The government is further reviewing these tax planning strategies in the coming months.
- Designated professionals including dentists, doctors, lawyers and accountants will no longer be allowed to exclude their unbilled work-in-progress from their taxable income
TAX TIP Did you know that you must immediately notify CRA of changes to your marital status? For a separation, this would be 90 days from the date the couple started living separate and apart, regardless of whether the couple is legally married or living in a common-law relationship. Please contact us now for professional advice with regard to breakdowns in opposite-sex or same-sex marriages or common-law relationships.
June 15, 2017 Self-Employed Tax Deadline
Be sure to file your 2016 Self-Employed Individual Income Tax Return now to avoid costly penalties.
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HALPERN Chartered Professional Accounting Firm is a full-service Tax, Accounting, Business Advisory and Financial Planning CPA firm. Accurate and timely information is only one piece of any effective solution. We are dedicated to bringing you all of the pieces together – knowledgeable and innovative advice, leading-edge technology, and a strong relationship with our clients. This type of creative thinking enables us to help you and your business organization to solve complex problems and significantly enhance your ability to improve performance, manage risk and build value.
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