Resources

In-Depth Tax Practitioner

Penny Tchir, CPA, CA joins our resident expert Darcie Sabados, CPA, CA in the In-depth Tax Program. Darcie completed the program in 2010 and Penny will complete it in 2017.  This program provides research skills and tax reorganization experience.  A wide range of tax needs can be serviced by an In-depth tax practitioner, from incorporating your business to succession and estate planning.  Corporate reorganizations can accomplish, but are not limited to, incorporating your business, passing on your business to the next generation, or restructuring to meet estate or tax planning needs. Please contact Darcie to discuss your income tax planning needs in detail.

AgExpert and Field Manager Pro

In 2011, Daphne Miller completed her training as a certified advisor for AgExpert Analyst and Field Manager PRO. AgExpert Analyst is a recommended and supported farm accounting package. Field Manager PRO helps you make informed production decisions and allows you to enter crop information at home or in the field with mobile software. If you require more information or would like assistance with program training please contact Daphne

INCOME TAX CHANGES

Working Income Tax Benefit for 2016

  • Single – $1,123 for income between $8,375 and $12,230. The benefit is reduced over $12,230 of income to 0 at $19,717 of income.

  • Family – $1,684 for income between $11,180 and $16,678. The benefit is reduced over $16,678 of income to 0 at $27,908 of income.

GST ELECTRONIC

All GST returns must be electronically filed if your total taxable and zero rated supplies of goods and services is more than $1.5 million

Payroll

  • EI insurable earnings ceiling for 2017 is up to $51,300
    • the rate for 2017 is 1.63%
  • CPP pensionable earnings ceiling for 2017 is up to $55,300
    •  the rate for 2017 remains at 4.95%
  • Regular remitters, whose average monthly withholdings amount is less than $25,000, must remit source deductions on or before the 15th day of the month after you paid your employees.
  • Threshold 2 remitters, who have an average monthly withholding amount in excess of $100,000, must remit source deductions at a Canadian financial institution.
  • Failure to deduct penalty is 10% of the amount of CPP, EI and income tax you did not deduct and remit on time.  If assessed this penalty more than once in a calendar year, a 20% penalty is applied to the second or later failures.

Tax Free Savings Accounts (TFSA)

  • individuals 18 or older can contribute
  • The annual contribution limit is $5,500 for 2017.
  • Withdrawals can be re-contributed in the beginning of the year after withdrawal.
  • the contributions are not tax deductible
  • investment income earned on the account will not be subject to income tax.

Over-contribution of TFSA (Tax Free Savings Account)

  • Penalties are incurred for over contributing
  • Check your Notice of Assessment for contribution amount

Capital Gains Exemption (CGE)

  • In the 2013 budget, the Lifetime CGE increased to $800,000 per person for the on qualified small business corporate shares.  This amount will be indexed for inflation in future years.  The 2016 exemption is $824,176.
  • In the 2015 budget, the Lifetime CGE increased to $1,000,000 per person for dispositions after April 20, 2015 on qualified farm property and remains at that level.

Prescribed Interest Rates

  • The interest rate charged on overdue taxes, GST, Canada Pension Plan contributions, and Employment Insurance premiums remains at 5% in the first quarter of 2017.
  • Contra Interest on Instalments
    • If the taxpayer pays full amount ½ way through the year, the interest payable on first half of year will be offset by the interest receivable for second half of year.

Alberta Professionals Family Members able to own Non-voting Shares in a Professional Corporation

  • Consists of Accountants, lawyers, doctors, dentists, chiropractors, and optometrists
  • Increases income splitting ability in Professional Corporations.

Auto Log

  • If you are using a vehicle for both personal and business use, then a log book, with dates and trip details should be used, and mileage should be recorded for both.
  • Keeping a log book for 2 weeks per year can be practical solution in that you can argue that it is representative.

FARM HIGHLIGHTS

AgriInvest

Your AgriInvest account builds as you make annual deposits based on a percentage of your Allowable Net Sales and receive matching contributions from federal, provincial, and territorial governments. You have 90 days from the issue date on the Deposit Notice to make a deposit to your account.

SELF-EMPLOYED INDIVIDUALS

EI Benefits for Self-Employed Individuals

  • Eligible for benefits one year after the first payment.
  • Can opt out of program anytime if benefits are not claimed. If claimed, you have to contribute on self-employed earnings for as long as you are self-employed.
  • Same premium rates as employees.
  • Not required to pay employer share of premiums.

Employee vs. Self-Employed Individual

  • See guide RC4110 to help in determining, or avoiding employee status

DONATIONS

Charitable Donations

  • Be careful of donations to certain tax shelter gifting and charitable donations such as:
    • Trust arrangements
    • Leveraged Cash Donations
    • Buy Low, Donate High arrangements
  • CRA is auditing all tax shelter gifting arrangements

Political Donations

  • The 2017 annual contribution limit for an individual to a registered party is $1,550.
  • Maximum credit in one taxation year is $650 and is reached when the taxpayer has contributed $1,275.

TRADESPERSONS

  • Tradesperson tool expenses tax deduction - For 2016, the claimable amount is equal to the cost of new tools in excess of $1,161 to a maximum claim of $500.

Apprenticeship Incentive Grant

  • Grant is in addition to apprentice job creation tax credit for employers
  • Taxable cash grant of $1,000/year, up to a maximum of $2,000 per person
    • Available to registered apprentices once they have successfully completed their first or second year/level (or equivalent) of an apprenticeship program in one of the Red Seal Trades
  • Search “Apprenticeship Incentive Grant” in any search engine for applications and a list of the many red seal trades.
    • Includes many trades such as hairstylist, baker, parts-person, etc.
  • Deadline is June 30th of the following year

Apprenticeship Completion Grant

  • $2,000 taxable cash grant to encourage apprentices who are registered in a Red Seal trade to complete their apprenticeship program and receive their certification
    • Eligibility is retroactive to January 1, 2009
  • Apprentices must complete training, get their certification and obtain either the Red Seal endorsement or a provincial or territorial Certificate of Qualification.
  • Same deadlines for this grant as the Apprenticeship Incentive Grant

PARENTS

Scholarship and Bursary Income

  • – All amounts of scholarships, fellowships, and bursaries may be excluded from income if the individual is entitled to the education tax credit.

Canada Child Benefit

  • The Universal Child Care Tax Benefit, National Child Supplement and Child Tax Benefit are rolled into this new benefit for 2016.
  • Amounts will be non-taxable.
  • Payments will be reduced based on family income.
  • No reduction will occur for family income below $30,000.

Registered Education Savings Plan (RESP)

  • Lifetime RESP contribution limit is $50,000 per beneficiary.
  • The maximum annual Canada Education Savings Grant (CESG) is $500 per year depending on income level and contributions.
  • Lifetime CESG limit of $7,200 per beneficiary regardless of income level.

RETIREMENT INFORMATION

Working beneficiaries to participate in CPP

  • Individuals aged 60-65 still working must pay CPP, regardless of receiving CPP retirement benefit.
  • Individuals between 65 and 70 years old can elect to stop contributing to CPP by filing form CPT30 with their employer and CRA

Pension Income Splitting

  • Persons eligible for the $2,000 pension income credit can transfer up to 50% of this income to a spouse/common-law partner.
    • This will require a joint election (Form T1032) signed by both parties.
  • The joint election must be signed each year so that the parties can elect the optimal amount each year.
  • Consider other subsidy payments that the other spouse may not be eligible for due to having additional income.

WEBSITES

Market Value of Farm Equipment

Farmland Values

Retirement Planning

Starting a New Business

Information for/about seniors

Looking for information on student financing, scholarships and awards

Business Valuation Calculator

Fund Companies

For assistance in determining historical prices, distributions and splits

Trust Information for ROC payments

Calculators: best loan plan/rate, buy vs. lease

Finding Court Cases

U.S. Forms in a Fill-In Format

Drought Regions

Historical Foreign Exchange Rates

PHONE NUMBERS

T.I.P.S

  • 1-800-267-6999

Individual Income Tax Queries

  • 1-800-959-8281

Business Enquires & Registrations

  • 1-800-959-5525

Forms and Publications

  • 1-800-959-2221

GST/HST Credits

  • 1-800-959-1953

CRA Charities Directorate

  • 1-800-267-2384

International Tax Office

  • 1-800-267-3395

CRA Income Tax Rulings Directorate

  • 1-613-957-8953

CRA Registered Plans Directorate

  • 1-613-954-0419

CRA Pensions Adjustments, reversals & Past Service Adjustments

  • 1-800-267-3100

DEADLINES

March 1, 2017

  • RRSP deadline

March 31, 2017

  • Tax payment deadline for corporations with December 31 year ends

April 30, 2017

  • Personal tax filing deadline for most individuals – Tax payment deadline for all individual tax returns
  • Final deadline to pay 2017 Agri-Stability fee

June 15, 2017

  • Tax filing deadline for self-employed individuals.  However, any balances owing must be paid by April 30, 2017.

September 30, 2017

  • Deadline to submit 2016 Agri-Stability supplementary forms without penalty