Canadian Tax Podcast for the week of April 19, 2021. This week we cover:

• Revenue Quebec filing extension;
• Federal Budget Day;
• CRA Filing deadline unchanged;
• CPA Canada PACT guide;
• What to do with an incentive reimbursement or credit card cash back payment;
• Mechanics of the Climate Action Incentive;
• Double-tax on US-source income;

“This is the Canadian Tax Podcast, Episode # 008,  hosted by me, Cameron Ware. Good morning”

• “Happy Monday, it is the week of April 19, 2021. We’ll start with the news.

• Last week Revenue Quebec extended the personal tax filing deadline.
• Dates still stay the same, but they won’t implement late filing fees if you file after April 30th, but before May 31st..
• Interesting to see what CRA does.
• CPA Canada continues to push for extension
• https://www.revenuquebec.ca/en/coronavirus-disease-covid-19/faq-for-individuals/summary-table/
• https://www.cpacanada.ca/en/business-and-accounting-resources/taxation/canadian-tax-news

• Today April 19th is budget day.
• First budget released in two years.
• CBC leak says that it will cover a national daycare strategy, along with some luxury tax items.
• Supposedly staying away from capital gains tax changes.
• https://www.cbc.ca/news/politics/federal-budget-child-care-deficit-1.5992631

• CRA, in one of their “Tax Tips” has stressed that it’s important to file your taxes prior to April 30th.
• If you want to apply for financial aid for May 1st and forward, you need to have filed your tax returns in order to be eligible.
• Specific programs that could have proglems are the Canada Recovery Benefit (CRB), the Canada Recovery Caregiving Benefit (CRCB) or the Canada Recovery Sickness Benefit (CRSB)
• https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2021/still-time-file-taxes-by-april-30-2021.html

• So venting a little bit here.
• For those of you who aren’t accounting nerds, CPA is phasing in new standards for Compilation engagements. So in normal-speak, if you’re a client, your accountant now HAS to do a bunch of extra stuff on your file, or go to jail.
• So here’s the rub: CPA Canada changes the rules, saying you NEED to do this, or else.
• Then, helpfully provide a new guide called “Practice management, advisory, compilations and tax” guide. PACT.
• Yours for only $395.
• So, governing body changes the rules. Then, in order for members to get guidance on how to comply with the new rules, CPA Canada charges you extra.
• When is CPA Canada going to actually support smaller members? (ie. Meaning the outfits who don’t audit public companies…)
• Law Society of Canada and provinces provide tons of support to their respective members. FREE support. Here’s AB. https://www.lawsociety.ab.ca/resource-centre/key-resources/practice-management/law-firm-start-up-kit/
• https://www.cpacanada.ca/en/business-and-accounting-resources/audit-and-assurance/standards-other-than-cas/publications/pact?utm_source=aprilemail&utm_medium=email&utm_campaign=PACT2021

• Where to report incentives?
  • [quote]
  • Typically this goes to offset bank charges/interest.
  • Misc revenue or expense recoveries is the alternative if you want.
• Climate Action Incentive: How Do I Get The Money?
  • [quote]
  • So the CAI is processed right on your tax return.
  • Added as an “extra refund”.
  • Amount depends on spouse, kids, outside urban area, etc.
• Double-Tax on US income
  • [quote]
  • Cross-border stuff is tricky. I won’t get into the weeds here. Simplest answer is you’re likely missing the foreign tax credit claim on your Cdn tax return.
  • Functionally: You get paid from US outfit, pay US tax.
  • You show the full amount of income from your US job on your Cdn tax return.
  • DOUBLE-TAX right now.
  • However, claim foreign tax credit. Eliminates double tax.
  • Pro-tip: File US 1040NR return, get back all of the US tax.
  • Also, watch forex.
  •  

That will wrap things up for today. Like always, if you have any questions, send them to [email protected], or find us on twitter: https://twitter.com/cdntaxpodcast  

This is Canadian Tax Podcast, thanks for listening.