Canadian Tax Podcast for the week of April 19, 2021. This week we cover:
- Revenue Quebec filing extension;
- Federal Budget Day;
- CRA Filing deadline unchanged;
- CPA Canada PACT guide;
- What to do with an incentive reimbursement or credit card cash back payment;
- Mechanics of the Climate Action Incentive;
- Double-tax on US-source income;
“This is the Canadian Tax Podcast, Episode # 008, hosted by me, Cameron Ware. Good morning”
- “Happy Monday, it is the week of April 19, 2021. We’ll start with the news.
[ITEM 1] – Quebec Filing Extension
- Last week Revenue Quebec extended the personal tax filing deadline.
- Dates still stay the same, but they won’t implement late filing fees if you file after April 30th, but before May 31st..
- Interesting to see what CRA does.
- CPA Canada continues to push for extension
[ITEM 2] – Budget Day
- Today April 19th is budget day.
- First budget released in two years.
- CBC leak says that it will cover a national daycare strategy, along with some luxury tax items.
- Supposedly staying away from capital gains tax changes.
[ITEM 3] – File On Time Says CRA
- CRA, in one of their “Tax Tips” has stressed that it’s important to file your taxes prior to April 30th.
- If you want to apply for financial aid for May 1st and forward, you need to have filed your tax returns in order to be eligible.
- Specific programs that could have proglems are the Canada Recovery Benefit (CRB), the Canada Recovery Caregiving Benefit (CRCB) or the Canada Recovery Sickness Benefit (CRSB)
ITEM  – Accountants: CPA Canada’s New “PACT” GUIDE
- So venting a little bit here.
- For those of you who aren’t accounting nerds, CPA is phasing in new standards for Compilation engagements. So in normal-speak, if you’re a client, your accountant now HAS to do a bunch of extra stuff on your file, or go to jail.
- So here’s the rub: CPA Canada changes the rules, saying you NEED to do this, or else.
- Then, helpfully provide a new guide called “Practice management, advisory, compilations and tax” guide. PACT.
- Yours for only $395.
- So, governing body changes the rules. Then, in order for members to get guidance on how to comply with the new rules, CPA Canada charges you extra.
- When is CPA Canada going to actually support smaller members? (ie. Meaning the outfits who don’t audit public companies…)
- Law Society of Canada and provinces provide tons of support to their respective members. FREE support. Here’s AB. https://www.lawsociety.ab.ca/resource-centre/key-resources/practice-management/law-firm-start-up-kit/
- Where to report incentives?
- Typically this goes to offset bank charges/interest.
- Misc revenue or expense recoveries is the alternative if you want.
- Climate Action Incentive: How Do I Get The Money?
- So the CAI is processed right on your tax return.
- Added as an “extra refund”.
- Amount depends on spouse, kids, outside urban area, etc.
- Double-Tax on US income
- Cross-border stuff is tricky. I won’t get into the weeds here. Simplest answer is you’re likely missing the foreign tax credit claim on your Cdn tax return.
- Functionally: You get paid from US outfit, pay US tax.
- You show the full amount of income from your US job on your Cdn tax return.
- DOUBLE-TAX right now.
- However, claim foreign tax credit. Eliminates double tax.
- Pro-tip: File US 1040NR return, get back all of the US tax.
- Also, watch forex.
This is Canadian Tax Podcast, thanks for listening.