| Year End Tax Planning Tips and Reminders 2023 |
| As we approach the end of the year, now is a good time to start thinking about tax planning to make the most of opportunities available to you, as well as be prepared for approaching deadlines are. Over the next few weeks please take an opportunity to read our Year End Tax Planning Tips and our Quarterly Tips for December. Reminder that you have until Thursday, February 29, 2024, to make tax-deductible registered retirement savings plan (RRSP) contributions for the 2023 year. Consider having the higher income earning individual contribute to their spouse’s RRSP via a “spousal RRSP” for greater tax savings. IMPORTANT CRA Announcements We wanted to make you aware of two important announcements from the Canadian government. These have been reported in our past newsletters and they do warrant some additional consideration as they may impact your business in the new year. Canada Emergency Business Account (CEBA) The forgiveness repayment date has been extended to January 18, 2024 for eligible CEBA loan holders in good standing.More details about loan repayment and forgiveness are provided in the FAQs on the website link below.Loan holders that did not qualify for the new extended term continue to be required to repay the outstanding amount of their CEBA Loan(s), in full, by December 31, 2023.Loan holders will be contacted by their financial institution to confirm their eligibility for the January 18, 2024 repayment deadline to qualify for partial loan forgiveness. Additional information can be found at the following link – https://ceba-cuec.ca/ Interest and Penalties on CRA outstanding balances With rising interest rates, the amount of interest CRA is charging on overdue balances has become significant. A reminder that CRA interest and penalties are not deductible for income tax purposes. Therefore, the interest rate charged by CRA is much more expensive than similar interest charged by your financial institution on your operating line of credit or other debt. That interest rate charged on overdue taxes is currently 9%. This will increase to 10% effective January 1, 2024. Information on prescribed interest rates can be found at the following link – https://www.canada.ca/en/revenue-agency/services/tax/prescribed-interest-rates.html Please reach out to us to understand your payment obligations with respect to overdue taxes and instalments required for the year. Please contact our office if you have any questions at 905 891 5339. Please note our holiday hours: Our Holiday Hours December 25 – Closed December 26 – Closed December 27, 28, 29 Open January 1 – Closed January 2 – Open |
