Articles
RRSP Home Buyer’s Plan
The Home Buyer's Plan (HBP) allows you to borrow funds from your RRSP to buy or build a qualifying home, if: You or your spouse or common-law partner have not owned a home which you occupied as your principal residence during the four years preceding the withdrawal for the Home Buyer's Plan, or You are buying or building a home for a related disabled person. The maximum amount that can be borrowed was increased to $25,000 by the Federal 2009 Budget, which also announced a new … [Read More...]
Ontario Co-operative Education Tax Credit
The co-operative education credit (CETC) is a refundable tax credit that is eligible to claim a percentage of expenses incurred by a corporation for qualifying work placement programs. The maximum credit amount for each qualifying work placement is $1000 for a program ending ending before March 27, 2009 and $3000 for a program being after March 26th, 2009. Eligible expenses include: Salaries (Including taxable benefits) Wages (Including taxable benefits) Fees payable to an … [Read More...]
CRA Proposing Mandatory E-Filing Requirements after 2012
A surprise measure was introduced in the 2012 federal budget legislation (Bill C-38), a mandatory e-file requirement, which will be effective for 2012 income returns filed after December 31, 2012. The proposal will impact tax preparers engaged to prepare more than 10 income tax returns annually. The proposal contains a new definition of "tax preparer" for this purpose, which includes a person or partnership that accepts consideration to prepare more than 10 "returns of income" of corporations … [Read More...]
Canada Pension Plan (CPP) Changed January 2011 & 2012
The following changes will be phased in gradually between 2011 and 2016. The first major change occurred in January 2011 for people retiring after age 65: Your monthly CPP retirement pension amount will increase by a larger percentage if you take it after age 65 (gradually from 2011 to 2013). Your monthly CPP retirement pension amount will decrease by a larger percentage if you take it before age 65 (gradually from 2012 to 2016). The number of years of low or zero earnings that are … [Read More...]
File on time — Don’t miss out on credits and benefits
Even if you don't owe taxes, you should file your 2011 income tax return by April 30, 2012 to be eligible for some tax credits and benefits. Important facts Eligibility for certain benefit payments such as the goods and services tax/harmonized sales tax (GST/HST) credit and the Canada child tax benefit is based on information in your yearly tax return. Generally, you have until midnight on April 30, 2012 to file your 2011 income tax and benefit return. If you or your spouse or … [Read More...]
Economic Action Plan 2012
The Economic Club of Canada in Ottawa spoke about how the Economic Action Plan 2012 will leverage sustained economic growth and job creation by expanding trade and opening new markets for Canadian businesses. The Government understands that Canada’s prosperity is linked to reaching beyond our borders for economic opportunities that serve to grow Canada’s trade and investment. In less than six years, Canada has concluded new free trade agreements with nine countries and concluded or brought … [Read More...]
Interest rates for the second calendar quarter
Ottawa, Ontario, March 14, 2012... The Canada Revenue Agency (CRA) today announced the prescribed annual interest rates that will apply to any amounts owed to the CRA and to any amounts the CRA owes to individuals and corporations. These rates are calculated quarterly in accordance with applicable legislation and will be in effect from April 1, 2012 to June 30, 2012. The rates below remain unchanged. Income tax The interest rate charged on overdue taxes, Canada Pension Plan contributions, … [Read More...]
Registered Educational Savings Plan (RESP)
A RESP is a savings plan for post-secondary education which allows funds to accumulate on a tax-deferred basis up to certain limits. There is no annual limit for contributions. For each beneficiary the lifetime limit on contributions is $50,000. Although there is no tax deduction, the interest and income earned within the plan is sheltered, which means that the tax is only payable on the funds withdrawn to fund the student’s education. And it is taxed at the student’s low rate. … [Read More...]
Ontario Takes Action to Eliminate Deficit
The Ontario government is moving forward with a responsible plan to eliminate the deficit so that more jobs are created and the economy continues to grow. Since the introduction of the 2011 Budget, growth in the global economy has slowed. This means additional steps must be taken to slow down the rate of growth of government spending in order to keep the plan to eliminate the deficit on track. Ontario Finance Minister Dwight Duncan outlined today the next steps in the government's plan to … [Read More...]
2012 Tax System Indexation
On January 1, 2012, all indexed personal income tax amounts, including tax bracket thresholds and amounts used to calculate non-refundable tax credits, were adjusted by 2.8%. The Canada Child Tax Benefit and the goods and services tax credit will take effect July 1, 2012. For 2012 the federal tax bracket thresholds are: 22% for taxable income above $42,707 26% for taxable income above $85,414 ; and 29% for taxable income above $132,406. … [Read More...]
