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5 BULLET FRIDAYS - Tax Mechanic News, Tips, Strategies

5 BULLET FRIDAYS - Tax Mechanic News, Tips, Strategies

Tax Mechanic
November 01, 2024

Bite-size tax and finance-related information that could save you $$$

Welcome to Tax Mechanic Insights!

Your go-to newsletter for turning tax troubles into triumphs. Whether you're handling 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.

At Tax Mechanic, we’re more than just a service; we’re a community. Join us today and take the reins of your financial future.

HALLOWEEN SPECIAL

Trust Reporting for the 2024 Tax Year

Bare Trusts Exemption Continues

Ottawa, Ontario – October 29, 2024 The Canada Revenue Agency (CRA) has announced that bare trusts will not be required to file a T3 Income Tax and Information Return (T3 return), including Schedule 15 (Beneficial Ownership Information of a Trust) for the 2024 tax year, unless directly requested by the CRA. This policy extends the exemption granted for the 2023 tax year.

Reporting Requirements for Other Trusts

Other affected trusts with taxation years ending after December 30, 2023, must adhere to the new trust reporting requirements. These trusts must file a T3 return, including Schedule 15, unless specific conditions are met.

Filing Deadline

The deadline for submitting the T3 return is no later than 90 days after the trust's tax year-end. For trusts with a December 31, 2024, tax year-end, the T3 Return must be fild by March 31, 2025.

Deadline

Key Points

Bare Trusts Exemption: No T3 return required for bare trusts unless specifically requested by the CRA.
Affected Trusts: Must file a T3 return and Schedule 15 for taxation years ending after December 30, 2023.
Deadline: T3 return is due within 90 days after the trust's tax year-end (e.g., March 31, 2025, for a December 31, 2024, year-end).

Source: Canada Revenue Agency.

Episode 642: The Secrets Behind YC's Success

Hosts: Sam Parr and Shaan Puri

Guest: Garry Tan - CEO of Y Combinator

In this episode of My First Million, Sam Parr and Shaan Puri welcome Garry Tan, CEO of Y Combinator. From the organization's inception to its position as a premier startup accelerator, Garry shares invaluable insights and lessons from his experiences with industry titans like Paul Graham and Peter Thiel. This episode is filled with practical advice, success strategies, and unique perspectives on the startup ecosystem.

Being the Harvard of Startups: How Y Combinator has become the premier startup accelerator.

Outperforming Silicon Valley Investors: What sets YC apart from other investors in the tech ecosystem.

Spotting Extreme Winners: Strategies for identifying startups with extraordinary potential.

Capital-as-a-Service: The innovative funding model that YC offers to startups.

Turning Down Peter Thiel: The intriguing tale of rejecting an offer to start Palantir.

Garry's First Million: How Garry made his first million and the lessons learned.

The Edge of Startups: Why small, nimble teams (a "2-pizza team") have an advantage.

Advice for Founders in AI: Garry's tips for entrepreneurs in the artificial intelligence sector.

Click here to see the full podcast on youtube

Maximize the Potential of Your Corporation's Tax Losses

Unlocking the Value of Tax Losses

Tax losses can be a hidden asset for your corporation. In Canada, these losses can offer strategic value. If your corporation is currently experiencing tax losses, it might hold more potential than you realize.

Get in Touch

Turn Tax Losses into Financial Gains

Strategies to Leverage Your Corporation’s Tax Losses

Sell Your Corporation- Corporations with tax losses can be highly attractive to other entities looking to offset their taxable income.
Acquire a Corporation with Tax Losses- If your goal is to reduce taxable income, purchasing a corporation with tax losses can be an astute financial move.

Get in Touch

Explore how you can maximize your tax losses to your advantage. Schedule a free consultation with us today to discuss the potential benefits and strategies tailored to your corporation.

By implementing these strategies, your corporation can turn tax losses into financial gains, providing a significant advantage in your financial planning.

$6 Million Data Breach: H&R Block and CRA Under Fire

Breach Overview and Impact

Cyberattacks Impact Thousands: Hackers breached H&R Block Canada, compromising personal CRA accounts.
Massive Fraud: Imposters manipulated information, submitting false tax returns and pocketing over $6 million in bogus refunds.

$6 Million dollars- WASTED?

Unreported Breach

Hidden Breach: Despite the magnitude, the breach was not disclosed to the public.
Call for Inquiry: Laval University's André Lareau called for a parliamentary inquiry to uncover the issue's extent.

Systemic Issues and CRA Challenges

Multiple Breaches: Investigation found several security breaches overwhelming the CRA.
62,000 Accounts Hacked: Between March 2020 and December 2023, 62,000 Canadian tax accounts were compromised.
31,468 Privacy Breaches: CRA admitted to over 31,468 "material" privacy breaches affecting 62,000 individual taxpayers.

Financial Implications

$37 Million Paid Out: Unsealed affidavit alleges CRA paid $37 million to tax scammers in another case.
COVID-19 Impact: Over $190 million in bogus payments connected to privacy breaches between 2020 and 2024.

Official Responses and Accountability

Minimal Transparency: CRA and Revenue Minister Marie-Claude Bibeau declined detailed responses.
H&R Block's Stance: Asserted their systems were not compromised, denying evidence linked the breach to their data.

Urgent Need for Reform

Enhance Cybersecurity: CRA needs stronger measures to safeguard personal information.
Maintain Public Trust: Transparency and proactive measures are essential to regain confidence in the agency.

Source: CBC News

Read the full article here