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5 BULLET FRIDAYS - Tax Mechanic News, Tips, Strategies
Tax Mechanic
January 10, 2025
In partnership with
Bite-size tax and finance-related information that could save you $$$
Welcome to Tax Mechanic Insights! 📬
🌟 Overview |
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Welcome to your definitive newsletter for transforming tax troubles into triumphs. 💼 Whether you're managing personal or corporate taxes, our seasoned experts are here to guide you every step of the way. 🧑💼 Today's edition is brought to you by Tax Mechanic – your trusted partner in navigating the complexities of the Canadian tax system. 🛠️💡📊 |
What You Need to Know About Filing Your Taxes in 2025
✨ Stay Updated & Get Ahead! ✨
Are you prepared to file your 2024 taxes after the New Year celebrations? This year, several changes are on the horizon, including updates to the CRA’s digital reporting requirements, shifts in carbon tax policies, and the introduction of new tax measures like the Digital Services Tax Act.
Key Deadlines & Important Information 🗓️
🛎️ When is the tax filing deadline in 2025?
The tax filing deadline for 2025 is Wednesday, April 30.
Ensure you receive and keep your CRA T4 slip from each employer, which will include:
Taxable income earned
Total income taxes deducted
CPP/QPP, EI, PPIP deductions or payments
Important Changes This 2025 Tax Season 📊
Change | Details |
|---|---|
New Personal Income Tax Brackets for 2025 | Canada’s progressive tax system will see a 2.7% increase in tax brackets to account for inflation: |
15% on the first $57,375 | |
20.5% on income over $57,375 up to $114,750 | |
26% on income over $114,750 up to $177,882 | |
29% on income over $177,882 up to $253,414 | |
33% on income over $253,414 | |
CRA’s Late-Filing Fees for 2025 | A 5% fee of your balance owed if filed late, with an additional 1% for each month not fully paid. |
Updates to the Canada Child Benefit (CCB) 2025 | Benefits increased by 2.7%. For children under 6, the benefit rises to $7,997 annually, and for children aged 6-17, it increases to $6,748. |
Final Thoughts 💡: Filing your taxes in 2025 won’t be drastically different from previous years. However, staying up-to-date with these changes can simplify the process.
Quick Tip: File your taxes as soon as you receive your documents to access refunds and benefits sooner! 🕐
Source: Information adapted from CRA and CTV News
Unlocking Your First $1,000,000: Post-Graduation Success 🚀
Issued By: My First Million
In this episode, Shaan Puri shares his meticulous 5-step process for generating $1,000,000 swiftly. Prepare to be inspired by innovative strategies and practical insights that pave the way for financial success. 💼💡
Show Notes
Time Stamp | Segment | Description |
|---|---|---|
0:00 | Intro | Introduction to Shaan's journey and the episode. |
2:32 | Slay the Salary Monster | Strategies to overcome salary constraints. |
13:26 | Play the Game 10 Times | The importance of repetition and persistence. |
20:05 | How to Win Even When You Lose | Turning failures into opportunities. |
25:26 | Proximity is Power | Leveraging close connections for success. |
26:33 | Impatient with Action, Patient with Results | Balancing immediate actions with long-term goals. |
Key Highlights
Innovative Strategies: 🚀 Gain insights into Shaan's unique approaches for rapid financial growth.
Persistence & Repetition: 🔄 Discover the power of playing the game multiple times.
Turning Failures into Wins: 💪 Learn how to benefit from setbacks.
Networking Power: 🤝 Understand the importance of proximity in achieving success.
Balanced Approach: ⚖️ Master the art of being impatient with actions but patient with results.
This episode is packed with valuable insights and practical tips for entrepreneurs, investors, and anyone looking to enhance their financial and personal growth. 💼📈
📋 Tax Debt Resolution & Financing Program
For Tax Debts under $100K
💼 Legal Fee: The Cost of the Buy-down of the Interest Rate to less than 10% + Service Fee (i.e., % of Total Financing Sought)
How the Program Works
📝 Initial Consultation & Assessment
Free Initial Consultation: Evaluate the client's tax debt situation (individual or business), assess CRA notices, and devise the optimal resolution strategy.
Eligibility Review for Financing: Collaboration with the Tax Mechanic to assess client eligibility for the 0% interest financing option.
🔍 Engagement & Financing Agreement
Service Engagement: Once deemed eligible, the client signs a retainer agreement with the law firm.
Financing Application: Assistance provided to the client in completing a financing application with the partner financing company.
Immediate Payout: Upon approval, 100% of the legal fees, including the total tax debt amount, is deposited directly into Lawlignment's trust account.
⚖️ Legal and Financial Management
Step | Description |
|---|---|
Funds Allocation in Trust Account | Covers both the legal fees and the full tax debt payment to the CRA. |
Disbursement to CRA | Lawlignment disburses the tax debt portion from the trust account directly to the CRA, ensuring timely and accurate payment. Provides clients with official receipts and confirmation of tax debt clearance. |
🔧 Comprehensive Tax Debt Resolution Services
Debt Analysis & Negotiation: Development and execution of a tailored legal strategy (e.g., negotiating installment agreements, filing objections, or exploring offers in compromise).
Ongoing Legal Representation: Representation of clients in dealings with the CRA, ensuring compliance and favorable outcomes.
💳 Client’s Repayment to Financing Company
Repayment Terms | Details |
|---|---|
Repayment Period | Clients repay the financing company over a 12-month period at less than 10% interest, covering both legal fees and tax debt amount. |
Flexible Repayment | Options available for early repayment at no additional cost. |
This program offers a structured and efficient approach to resolving tax debt, ensuring clients receive comprehensive support from initial consultation to final repayment. By leveraging professional legal and financial management, clients can achieve favorable outcomes and clear their tax debts with confidence. 💼
📢 CRA to Collect Increased Capital Gains Taxes Despite Proposed Hike Not Being Passed into Law 📢
In a surprising move, the Canada Revenue Agency (CRA) expects Canadians to adhereto a proposed capital gains tax increase 📈 – even though the measure may never be passed into law.
Key Points:
Proposed Tax Increase: Canadians may owe more 💸 when selling assets and investments 🏦.
Standard Practice: The federal Department of Finance confirms it's standard to start collecting taxes before they are officially enshrined in law 🎯.
Consistency & Fairness: Taxation proposals become effective upon the government tabling a Notice of Ways and Means Motion, ensuring fairness among all taxpayers ⚖️.
Expert Insight: "If you believe that these proposals are likely not going to pass, then why blindly encourage taxpayers to comply?" - Accountant Kim Moody
CRA's Expectation: Canadians should file their taxes under the terms of the proposed changes 💼, even if the next government may scrap the hike altogether after the March 3 filing deadline 📅.
Potential Impact:
Amending Returns: If the proposal doesn't become law, taxpayers will need to amend their returns and wait for a refund ⏳.
Alternative Filing: Filing returns under last year’s regulations might result in paying interest and facing penalties if the hike proceeds 🔄.
CRA's Assurance: "The CRA will support taxpayers in ensuring any corrective reassessments are processed if the proposed measures do not pass," stated in a release 📋.
Source: CBC News 📰
📢 Consequences of Non-Payment of Taxes 📢
Here's a breakdown of what happens when you don't pay your taxes:
Step-by-Step Process 📜
Initial Contact:
The CRA calls you first ☎️.
Written Notices:
Ignored calls lead to letters being sent 📄.
14-Day Legal Letter:
Non-compliance results in a formal legal letter with a 14-day response window 📬.
Major Consequences:
Bank Account Freezes: CRA can freeze your accounts 🏦.
Persistent Harassment: Continuous calls and letters to you and your spouse 📞✉️.
Property Seizure: CRA can confiscate your assets and property 🏠🚗.
Continuous Pressure: Ignoring the CRA will intensify the pressure with ongoing calls and letters 📞✉️.
@taxmechanic What if you don't pay taxes? 🤔 Follow for more. #what #if #you #dont #taxes#follow #for #more #fyp #foryoupage#tipsandtricks #viral_video... See more
Seek Professional Help: To avoid these stressful situations, contact us for expert assistance 🚨. We have a top-notch team ready to support you 🛡️💼.
👉 Stay proactive and compliant with your tax obligations 📝🗂️.
Book Your Free Tax Consultation Now! 📞💼
🔧 Why Tax Mechanic? 🔧 |
|---|
Exclusive Access: Get a dedicated technician and manager. Expertise on Tap: Fraser Simpson with 35+ years dealing with CRA. AI Agents: Cutting-edge support. Community & Strategies: Join a network of tax strategies and shelters. Focused Attention: Personalized service just for you. |
And that's a wrap for this Friday, folks. Have a safe and fun-filled weekend! 🌟🎉 |
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