Omni Management Services Ltd.

04/05/2025

Happy Spring, Happy Easter and a warm welcome to flip-flop season!

The latest update from "Availability of tax information in the CRA’s portals and the Auto-fill my return service

We are aware that some 2024 tax slips are not yet available in My Account, Represent a Client, or through the Auto-fill my return service. We are working hard to make all slips available as soon as possible. If you do not see a tax slip in your CRA account, we recommend using the slip provided by the issuer (e.g., your financial institution or employer).

Additionally, the TFSA contribution limit displayed in your CRA account may not be up to date with the latest information. To avoid overcontributing, we encourage you to review the records provided by your issuer while we work to update the information in your online account. We regret any inconvenience and thank you for your patience."

Just to remind those of you still waiting on slips, this is not a blanket filing extension, CRA will not be imposing the interest and penalties on the following returns in the specified circumstances. The affected information slips are

T3 information returns (Trust and Estate returns):
The CRA will grant relief in respect of late-filing penalties and arrears interest until May 1, 2025, for impacted T3 Trust filers to provide additional time for taxpayers reporting capital dispositions to meet their tax filing obligations. This relief applies to both the filing of T3 information returns (slips) and the T3 income tax return, if the return is filed on or before May 1, 2025.

For T1 information returns (Personal income tax):
The CRA will grant relief in respect of late-filing penalties and interest until June 2, 2025, for “impacted T1 Individual filers”. A statement published on CRA's website February 13, 2025, stated that the penalty and interest relief is “to provide additional time for taxpayers reporting capital gains to meet their tax filing obligations”. This relief applies to a return otherwise due April 30, 2025 and filed on or before June 2, 2025. Some Trusts with a year end between January 1 and December 31, 2025 reporting a disposition may also be eligible for relief.

For those of you taking advantage of Spring Break - enjoy and safe travels! For the rest of us, remember us fondly from your beach chair as we keep working away.

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03/17/2025

A FURTHER UPDATE - I've received an email from our Canadian tax educator stating that in a March 11 CRA news release, they are recommending that taxpayers NOT file their returns yet if they have capital gains or losses.

CRA hasn't (as of this morning) posted this release, it is available in the Globe and Mail, March 11, 2025 edition. In the update I received, CRA is recommending that taxpayers wait until its system updates “in the coming weeks” before filing. If you're watching the calendar like we do this time of year, you realize there are less than 50 days left in the season before the April 30 deadline.

I believe it’s important to pay attention to the lack of a timeline when the system updates will be completed or any mention of a filing extension or further relief from interest and penalties.

As I stated in the newsletter, the system (neither CRA nor ours) can handle the volume of returns being prepared and submitted if everyone waits until the last minute to get started. On a personal note, my dogs may disown me if I try to work more than 24 hours each day.

If any of you here more or different information, please pass it along.

Thanks

03/17/2025

I want to update you on the current tax filing situation with the CRA. At the CRA’s request, software providers have disabled the ability to print any returns that have capital gains or losses, this includes the client copy. If you had or currently have capital gains, losses in Canada, the ability to file your return may be affected.
Fun Fact or Folly? For every tax problem, there is a solution that is straightforward, uncomplicated, and wrong.
The CRA has stated that they are not extending the filing deadline. Now, before you start to groan or reach for the remote, they have given a grace period with $0.00 arrears interest or late filing penalties for affected taxpayers.
I’ve listed the returns affected below – However PLEASE don’t think this means you can file late. The arrears interest and late filing penalty waiver only applies to taxpayers with the affected income slips or return types. We recommend that you bring or send the slips you have as soon as you can to get your tax returns started. With the large number of taxpayers potentially affected, it could be difficult for the systems to handle the volume of returns being prepared and submitted if everyone waits until the last minute to get started.
We've had some requests to see the turtle - So for those of you not fond of fur or feathers .......
On T1 personal income tax returns: The normal due date of April 30, 2025 (excluding those with self-employment income). The relief period with no late-filing penalties or arrears interest for” impacted T1 filers”, applies to returns filed no later that June 2, 2025. One report stated returns filed even 1 day after the waiver period may have arrears interest and late filing penalties applied back to the original filing deadline. I wasn’t able to find any official information on CRA’s site regarding this.
Where either spouse or an individual has self-employment income, the June 16, 2025 due date has not changed. CRA has stated that there is no need for relief on these returns. An important point to remember is that your taxes must still be paid by APRIL 30 . CRA charges compound daily interest starting the day after your tax payment is due.
On T3 trust income tax returns (including taxation years that end between January 1, 2025 and January 31, 2025): The normal due date of 90 days after the year-end (e.g. March 31, 2025 for a December 31, 2024 year-end) remains. The period of relief from arrears interest and late-filing penalties for “impacted T3 Trust filers” applies if the return is filed on or before May 1, 2025. This relief applies to both the filing of T3 trust tax returns and T3 information slips.
We have also found that returns with a capital loss carry forward are affected, though no mention of relief for these situations has been released. If you have or had an unused capital loss, current year capital gains, capital loss the filing of your tax return could be affected.
We received notification from our software provider today that their software has been recertified. This doesn't mean that all of the bank and investment companies have been. Until all of the slips have been issued, CRA doesn't have them. You still may be waiting a while for those slips and to complete your return.
The pessimist sees the glass as half empty. The optimist sees the glass as half full. CRA sees income and wants their cut.
And now to the part you really read these newsletters for, after the jokes of course. This month, we are offering the winner of our skill testing question their choice of a bottle of red or white wine from Omni's private collection. PLUS the chance of a second bonus bottle if the spelling is correct. Let's see how many know not only the name of our oldest staff member, but how they spell their name. As always please send your answers and out right guesses to
[email protected]
Sources:
CRA “Tax Tip” - Feb 18/25
CRA “What’s new for capital gains” – Feb 28/25
TaxCycle News – Feb 20/25
CPA Canada Need to Know “CRA announced penalty relief for taxpayers” (Ryan Minor – Feb 27/25)
Wolters Kluwer “Tax & Accounting” (Maureen Vance - Mar 7/25)
Copyright © 2025 Omni Management Services Ltd., All rights reserved.

02/27/2025

Today the CRA released information regarding short-term relief from interest and penalties for T1 filers impacted by delayed T3 trust filers (T3 Trust Income Tax Returns and T3 slips). This is not a filing deadline extension. Below is the full announcement:

"The Department of Finance announced today that it will introduce legislation in Parliament in due course, related to the capital gains inclusion rate change with a new effective date of January 1, 2026. As a result, the Canada Revenue Agency (CRA) has reverted to administering the currently enacted capital gains inclusion rate of one-half. This means that all capital gains realized before January 1, 2026 will be subject to the currently enacted inclusion rate of one-half, unless an exemption applies.

The CRA will grant relief in respect of late-filing penalties and arrears interest until June 2, 2025, for impacted T1 Individual filers and until May 1, 2025, for impacted T3 Trust filers to provide additional time for taxpayers reporting capital dispositions to meet their tax filing obligations.

With the proposed change to the effective date, the CRA will issue forms that have been reverted to the currently enacted rate in the coming weeks.

As the capital gains rate change is now proposed to be effective January 1, 2026, corporations can continue to use existing forms and tax software to file using the one-half inclusion rate until further notice."

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02/27/2025

Yes, it is that time of year and CRA has made some last minute changes we thought you should know about. But first - why don't accountants like warm weather?

1- RRSP – Purchase deadline for claiming on your own 2024 tax return is Monday March 3, 2025 or December 31st of the year your turn 71.

2- Charitable contributions – Usually the deadline is December 31st each year. Due to the postal strike, CRA has extended this deadline to February 28, 2025 for claiming on your 2024 tax returns. Any donations that you make between January 1, 2025 & February 28, 2025 may be claimed in either 2024 or 2025, but not both.

3- Deferral of the Capital gains changes from June 25, 2024 to January 1, 2026:

For capital gains accumulated in 2024, they will continue to be taxed at the 50% rate as in past years. To provide additional time for taxpayers who need to report capital dispositions, the CRA is providing relief from late-filing penalties and arrears interest for T3 Trust filings until May 1, 2025. This relief applies to both the filing of T3 information returns (slips) and the T3 income tax return. To learn more, read “Update on the Canada Revenue Agency’s administration of the proposed capital gains taxation changes”.

There hasn’t been any information on relief for individuals waiting on those late slips or possible relief from late filing penalties and interest on T1 returns.

4- Bare Trust filing relief: As per the CRA’s announcement from October 29, 2024, bare trusts are not required to file a T3 return and Schedule 15 for the 2023 and 2024 tax years, unless the CRA sends you a direct request for these filings.

The new trust reporting requirements still apply to other affected trusts with taxation years ending after December 30,2023. These affected trusts are required to file a T3 return, including Schedule 15, unless specific conditions are met.

To learn more, read the CRA’s Trust reporting for the 2024 tax year and New reporting requirements for trusts and bare trusts: T3 returns filed for tax years ending after December 30, 2023, respectively.

5- You should file a tax return even if you didn’t have any income or your income was either not taxable or tax exempt (No they aren’t the same). If you don’t file, you may not receive your benefit and credit payments such as carbon tax, child tax, GST etc.

6- Now what you really want to know – the answer …“Because it's accrual summer”. Yes, I realize not everyone was waiting for that, but admit it, SUM of you were.

Ace, Kona & Cedar want to thank everyone that responded to the January puzzle, correctly or not. They also want to remind you that all entries must be sent to [email protected] and that beginning in March, we will no longer accept answers sent to any other Omni email address. Drum roll please - Congratulations to our winner - Brant L. We’ll contact you about your prize.

02/03/2025

A reminder from CRA's website :

Scams and fraud statistics: 2023
Reports processed: 63,434
Victims of fraud: 41,988
Lost to fraud: $569 M
Source: Canadian Anti-Fraud Centre

Scams are everywhere and anyone can be taken in by them. Many scams and fraud attempt to imitate government services in order to gain access to your personal and financial information.

As tax season approaches, we can expect an increase in the number of false government callers. Did you notice that they didn't actually tell you anything? They should be using your full name, don't supply any information to them. If they ask who they are speaking to, ask who they are calling for. If they can't or wont tell you, it may be a scam.

Other indications that it may be a scam are if someone:
-Demands immediate payment
-Uses threatening language
-Sends you a link and ask you to click on it
-Asks for personal or financial information
-Requests payment by cryptocurrency or gift cards
-Requests that you stay on the phone with them
-If you are in doubt, take a minute to ask yourself why you are being contacted. It's okay to ask questions and say no.

You should report all scams or fraud to the Canadian Anti-Fraud Centre (CAFC), even if you were not a victim. The CAFC collects and provides information on fraud and identity theft to protect Canadians. This information may help assist law enforcement with their investigations.

Toll free: 1-888-495-8501
They answer calls Monday to Friday, from 10 am to 4:45 pm (Eastern time) and close on holidays.

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