Federal Government Quietly Promises Automatic Tax Returns in Speech from the Throne:
Prime Minister Justin Trudeau's federal government is reportedly set to introduce an automatic tax return system for simple federal tax returns, which could revolutionize access to tax return benefits for many Canadians who do not file returns every year. A study from Carleton University found that on average, 12 percent of working age Canadian adults do not file a return every year - potentially leaving a number of tax benefits on the table, and unclaimed.
At least thirty-six countries, including the United Kingdom, Germany, and Japan, already have some form of an automatic tax return regime in place. In Canada, in most cases by law, one does not need to file a tax return with the Canada Revenue Agency unless one owes taxes. However, failing to file a tax return for those whom do not owe taxes also potentially means leaving relevant tax return benefits unclaimed - equaling sometimes in the hundreds or thousands of dollars in cash value.
The promise for an automatic tax-return filing system was made in the government's September 23rd, Speech from the Throne.
Read more from CBC News here and WealthProfessional.ca here.
Saskatchewan Party and Saskatchewan NDP Duel Over Competing Tax Policy Proposals:
The governing Saskatchewan Party says the Province of Saskatchewan requires economic stimulus by the way of a proposed home-renovation tax credit. The opposition Saskatchewan NDP, campaigning for the provincial election set for October 26th, says that the province should raise taxes on the wealthy by implementing a one-percent "wealth tax" on provincial residents with a net-worth over $15 million. Election season has certainly arrived in Saskatchewan.
Reacting to the competing proposals, Chris Guérette, CEO of the Saskatoon & Region Home Builders’ Association, told Global News that with respect to a potential home-renovation tax credit; "residential construction has a significant economic impact in our province, and this is a solid policy when considering the economic recovery required during a pandemic." However, Saskatchewan NDP leader Ryan Melli told media that "we can do better — and ask the wealthiest amongst us to help ensure every family has access to the health care they need, when they need it. It’s time for a tax plan that puts people first — not the Sask. Party’s old boys’ club."
Read more from Global News here and the Saskatoon StarPhoenix here.
City of Montreal Freezes Municipal Property Taxes for 2021:
The Mayor of the City of Montreal, Valérie Plante, announced on Thursday that the City would not raise residential or commercial property taxes for 2021 - intended as a fiscal measure to help ease the economic pain from the turmoil cause by the COVID-19 pandemic. Speaking of the move, Ms. Plante said that "it’s a difficult but manageable financial situation." The Mayor added that although there are promising economic signs in the City; "unfortunately, it is not over, so we are trying to give them a break with this tax freeze."
The Canadian Federation of Independent Businesses spoke positively of the measure, with one senior policy analyst with the group saying that the business community in Montreal "urgently need it. That's what 62 per cent of the business owners we surveyed told us." CBC News reports that the economic turmoil caused by the pandemic has so-far cost the City of Montreal over $85 million, and Ms. Plante has noted the projected budget deficit for the City for the relevant year is at least $110 million.
Read more from The Montreal Gazette here and CBC News here.
Explainer: What US President Donald Trump's Taxes Reveal About US Tax Law
Investopedia.com has published an excellent explainer piece on the controversy surrounding a New York Times report on the alleged tax returns of US President Donald Trump, and the core issues at hand.
The key take-aways are as follows: US tax code has special benefits for real estate investors, tax-reduction strategies can substantially reduce taxes, but must follow stringent rules, and large IRS refunds are reviewed by the Congressional Joint Committee on Taxation.
Read more from Investopedia.com here and read the original New York Times report here.