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5 BULLET FRIDAYS - Tax Mechanic News, Tips, Strategies
In this edition: A Tax Court case study - Filing Deadlines, The Power of Capital Gains, No late filing penalties in BC and NWT
Tax Mechanic
September 22, 2023
Bite size tax and finance related information that could save you $$$
There is a strategy called "tax loss utilization" or "loss buying" to decrease a company’s tax bill. Your loss could be worth money.
Interested? Let me explain... book a call with me here!
Compliance with Filing Deadlines - A tax court case study
In a recent decision by the Tax Court of Canada, Adams v. The King, 2023 TCC 86, a taxpayer's appeal was dismissed, emphasizing the need to adhere to all statutory tax filing obligations and notice requirements, regardless of assurances provided by the CRA.
Under the Income Tax Act taxpayers have the right to object to a notice of assessment or reassessment of income tax issued by the Minister of National Revenue within 90 days of receiving the relevant notice. In cases where this deadline is missed, the Minister may grant an extension at their discretion, provided the taxpayer applies for it within one year after the initial deadline. Failure to obtain the Minister's extension leads to the option of applying to the Tax Court for an extension within 90 days of receiving the Minister's refusal to extend, but only if the taxpayer met the one-year deadline for applying to the Minister. Read more about the case here!
To conclude, the Tax Court dismissed Mr. Adams' application, citing previous cases involving taxpayers seeking extensions to meet filing deadlines. However, we just recently got an extension granted for our client despite of the expiry of the deadlines so there is hope. Do you have a tax court case? Contact me!
Unlocking Tax Benefits: The Power of Capital Gains
Capital gains are a powerful and often underutilized tax strategy that can help individuals and businesses reduce their tax liability while building wealth.
You can offset capital gains by selling investments with capital losses in your non-registered accounts. Also, take advantage of the preferential tax treatment for capital gains, which are typically taxed at a lower rate than interest income.
When selecting your investments, keep in mind that capital gains and dividends from Canadian stocks are eligible for the capital gains tax exemption and the dividend tax credit, respectively. Consider incorporating these investments into your portfolio to minimize taxes.
The best tax strategies will depend on your unique financial situation and objectives. Whether you're planning for retirement, minimizing your current tax liability, or preparing for the future, a well-thought-out tax strategy can help you keep more of your hard-earned money and achieve your financial goals.
Let’s look at your portfolio and do some tax planning. Book a free, friendly, no-obligation call!
Have you been affected by the wildfires this year?
No late filing penalties!
Wildfires in Canada have wreaked havoc, not only for those in their direct path but for the entire nation. The economic consequences of this summer's fires have been profound, with disruptions affecting various sectors across the country.
Their impact was felt strongly in the second and third quarter, as fires in significant resource-rich regions led to production shutdowns. This was evident in Statistics Canada's May gross domestic product (GDP) report, which showed a 0.3 percent month-over-month decline in goods output.
But here is some good news for BC and NWT businesses. If you have you been affected by the BC and NWT wildfires, there will be no late filing penalties or interest for T2 and GST/HST returns as long as you file and submit payment by October 16, 2023. Need to file ASAP? We can get you up to date within a week or two. Call us and we'll get to it!
Streamlining Workflows with Trello
Running your own business can be challenging. As a small business owner, you’ll have tons of daily, weekly, monthly, and yearly tasks to stay on top of, which can be overwhelming. Procrastinating, anyone? That’s why it is important to make sure you’re working smarter, not harder, and streamlining those complex workflows.
Great organization and productivity can be achieved using the proper tools. One of those tools we’ve been using here at the Tax Mechanic for years is Trello.
Trello is a project management and collaboration platform known for its simplicity and flexibility. It has numerous benefits to businesses looking to manage workflows and improve team collaboration. Its board-based interface provides a visual overview of your projects and tasks. You can create boards for different projects, departments, or teams, making it easy to track their progress at a glance.
If you’d like to try Trello and have questions, we’d be happy to answer them. And in case you are wondering, no, we are not affiliated with them, but they kept us happy and organized for years, so here is to giving back…
Recommended by the Tax Mechanic
“Here is a tax deduction I bet you didn’t know about…”
It’s claiming accounting fees on a reassessment or anything related to tax matters in a previous year. You’re welcome!”