Federal Budget 2016 changes tax rule about corporate class mutual funds

2016 Budget measure: Corporate Class Mutual Funds Canadian mutual funds can be in the legal form of a trust or a corporation. While most funds are structured as mutual fund trusts, many are also structured as mutual fund corporations (otherwise known as corporate class mutual funds). Corporate class funds offer investors different types of asset […]

A few of the changes made in the 2016 Federal Budget

Budget measure: Corporate Class Mutual Funds This topic is covered extensively in a separate post. Budget measure: Increasing Tax Rates The Federal and Ontario governments have both been raising tax rates at certain levels by adding new, higher tax brackets while sometimes slightly lowering other brackets. This adds to the complexity of tax planning and generally […]

What’s new for your 2015 and 2016 tax returns

With every new government it seems must come a bunch of tinkering with the incredibly complex income tax system, as each government rewards some groups and takes more from others.  IN 2016 Canada elected a new Federal Government and they have already announced a batch of changes, with final details to come shortly in a […]

RRIF rule changes from 2015 Federal Budget

When a RRSP holder reaches age 71, the plan must either be collapsed entirely or converted to income.  The plan of choice for most is a Registered Retirement Income Fund (RRIF) – an account type that has almost all the same characteristics and rules as a RRSP, except that it requires the planholder to withdraw […]

Changes to the Universal Child Care Benefit (UCCB)

The following material is from the Canada Revenue Agency website that explains the UCCB. Summary: Under proposed legislation, the Government is increasing and expanding the UCCB starting in 2015. The UCCB is being enhanced by providing up to $1,920 per year for each child under the age of 6, and introducing a new benefit of […]

Beware of an email scam pretending to be from the CRA

As a tax preparer I am very familiar with many of the procedures of the Canada Revenue Agency.  At this time of year you may be particularly susceptible to a fraudulent email that a client forwarded to me because she was not sure if it was legitimate.  The CRA will NEVER contact you in this […]

Snowbirds targeted by changes to U.S. border rules

Snowbirds likely know to track how many days they spend in the U.S. each year.  There are tax and other consequences for exceeding the guidelines. Prior to 2014 Canada and the U.S. did not track how many days someone had spent within their borders, only when someone entered the country.  Now they will exchange data and thus know exactly how long travelers are within […]

Income mobility in Canada

As a person who believes in the greatness of human abilities and is deeply aware of economics, production and wealth creation, I am often frustrated by social problems that I believe can easily be solved through economic freedom but which are prevented by the entrenched collectivism that has come to permeate much of our society. […]

Observations on the current state of government bonds

I just read a money manager commentary about bond markets and was struck by a small table included at the end of the comments.  The table showed current interest rates on federal government bonds with terms of 2 to 30 years for both Canada and the United States.  While I am not an economist, I […]

Changes to the Old Age Security Program (OAS)

OAS is financed from general government revenues and makes payments to most Canadians of age 65 and older.  The maximum OAS payment is currently $6,481 per year. Starting on April 1, 2023, the age of eligibility for OAS recipients will be gradually increased from 65 to 67, with full implementation by 2029.  This will not […]

What do we know about the current market mood?

As the title of this article indicates, my intention is to distinguish the market mood from several important facts.  The emotions of market participants is subject to change every moment of every day, causing them to change their outlook on the future value of businesses.  If people worry about the future, their appraisal of the […]