$1.1B identified in carousel frauds, agency says The Canada Revenue Agency says funds were wired overseas by participants in a scheme that deprived the treasury of untold millions. (Sean Kilpatrick/The Canadian Press) In early 2020, the Canada Revenue Agency came to believe it had made a $63-million mistake. The sum, the agency concluded, had been paid out in “illegitimate” tax refunds as part of what it now alleges was a “sham designed to deceive.” Iris Technologies, a Markham, Ont.-based company, had increased its sales from $27 million to $800 million in two years, according to CRA re ..read more

Canadians will again be able to put more into their tax-free savings accounts in 2024, according to Finance Canada. The department confirmed in a statement to Global News on Friday the TFSA contribution limits are being raised to $7,000 next year. That’s up from an increase of $6,500 in 2023, and marks the first time the Canada Revenue Agency has raised the size of contribution limit increase in back-to-back years since its inception in 2009. From 2019 to 2022, the increase was capped at $6,000 annually. The 2024 increase marks the second largest of all-time, with a one-time $10,000 bump to co ..read more

Canadians’ tax burden isn’t actually that high. But it tilts toward income taxes levied at steep rates. Using the GST more would help Do you think your taxes are too high? Well, join the club: the Fraser Institute says that nearly three-quarters of Canadians feel the same. In addition to income tax, we pay sales taxes, property taxes and payroll taxes (such as levies for the Canada Pension Plan and Employment Insurance). Then we have invisible taxes that we pay but don’t see — “sin” taxes on liquor and tobacco, custom duties and import levies, plus carbon taxes that add to the cost o ..read more

Canadians’ tax burden isn’t actually that high. But it tilts toward income taxes levied at steep rates. Using the GST more would help Do you think your taxes are too high? Well, join the club: the Fraser Institute says that nearly three-quarters of Canadians feel the same. In addition to income tax, we pay sales taxes, property taxes and payroll taxes (such as levies for the Canada Pension Plan and Employment Insurance). Then we have invisible taxes that we pay but don’t see — “sin” taxes on liquor and tobacco, custom duties and import levies, plus carbon taxes that add to the cost o ..read more

Canadians Can Receive Financial Payments From These Federal Benefits & Credits In October he Government of Canada has a number of benefits, payments and credits that will be sent out to eligible Canadians in October 2023. For Canadians struggling with the rising cost of groceries, rent and just about everything else, it’s best to double-check your eligibility for a number of federal programs since you could be paid out hundreds of dollars throughout the month. A few of the federal credits in Canada include the Canada Child Benefit, Canada Worker ..read more

What is the best place to retire in Canada, income-wise? Your after-tax income in retirement depends on the strategy you choose in drawing income from different sources. It also depends on where you live. On average, a 65-year-old couple retiring in 2023 with $800,000 in RRSPs and $100,000 in TFSAs would be able to generate total after-tax income including CPP, OAS and GIS of $115,600. (This is the amount expressed in constant dollars so it reflects future inflation.) As the chart shows, however, the actual amount varies by province and by territory since income tax rates and tax brackets vary ..read more

How changes to Canada Pension Plan benefits affect your wallet today and retirement tomorrow Whether you’re an employee or self-employed, you are required to contribute to the Canada Pension Plan (CPP), but you may have noticed that the amount you’re required to contribute has been slowly climbing. The reason for this is to support enhancements to the CPP program, which, once fully implemented, will increase the maximum CPP retirement pension by about 50 per cent. The first phase of enhancements started in 2019, and phase two begins in 2024, meaning CPP contributions will continue to escalate ..read more

Canada’s top income earners are in for a steep hike to their tax bills under measures proposed in the 2023 budget. The government plans to tighten up its alternative minimum tax scheme, which it says will squeeze $2.95-billion more over the next five years combined from roughly 32,000 Canadians. About 80 per cent of that will come from the estimated 8,000 people earning $1-million or more in annual income. Put another way, $1-million earners can expect to pay an average of $59,000 more a year in tax over that five-year period, according to government assumptions. The AMT was introduced in 1986 ..read more

Nine ways to prevent triggering a CRA tax audit Sign up for the Globe Advisor weekly newsletter for professional financial advisors on our newsletter sign-up page. Get exclusive investment industry news and insights, the week’s top headlines, and what you and your clients need to know. Every year, about 30,000 Canadians will receive a letter or phone call from the Canada Revenue Agency (CRA) telling them they’re being audited. That begins a lengthy and stressful process – regardless of whether it results in a reassessment with taxes due and penalties. Most candidates for an audit are flagged b ..read more

On March 28, 2023, the Deputy Prime Minister and Finance Minister, the Honourable Chrystia Freeland, presented Budget 2023 – A Made-in-Canada Plan: Strong Middle Class, Affordable Economy, Healthy Future, to the House of Commons. No changes were made to personal or corporate tax rates or to the inclusion rate on taxable capital gains. Some highlights include the following: A.    Personal Measures o   Modifications to the alternative minimum tax regime focused on high-income individuals. o   A one-time grocery rebate equal to two quarterly GST/HST credit payme ..read more