A&B Tax

05/05/2026

The Disability Tax Credit (DTC)

We would like to provide a brief explanation of how the Disability Tax Credit (DTC) works for your 2025 Personal Tax Return (T1).

The Disability Tax Credit is a non-refundable tax credit, which means that it is used to reduce income tax payable, but it does not create a cash refund on its own if no income tax is payable.

Its value depends on your taxable income and the amount of tax already paid or withheld during the year.

Scenario 1: Employment Income (T4) with Taxes Paid During the Year

If you have employment income reported on a T4 and income tax has been deducted during the year, the Disability Tax Credit is usually very beneficial.

In this case, the credit reduces your total tax payable. Since taxes have already been paid through payroll deductions, this reduction often results in:

a higher tax refund, or
a lower balance owing.

In practical terms, the more taxable income and tax withheld you have, the greater the immediate benefit of the DTC.

Scenario 2: Pension and Investment Income Only

If you do not have employment income and your income consists mainly of pension income, investment income, or government benefits, the Disability Tax Credit can still reduce tax payable.

However, if your total tax payable is already low (or reduced by other credits such as the Basic Personal Amount, Age Amount, or Pension Income Amount), part or all of the Disability Tax Credit may not be fully used.

Since the DTC is non-refundable, any unused amount does not generate a direct refund.

In this situation, it may be beneficial to review whether the unused Disability Tax Credit can be transferred to an eligible supporting family member, if applicable.

Important Note

The Disability Tax Credit is applied automatically in the tax return calculation once your T2201 Disability Tax Credit Certificate has been approved by Canada Revenue Agency.

The T2201 form does not need to be refiled each year unless CRA specifically requests updated information.

Summary
The Disability Tax Credit reduces tax payable.
It is a non-refundable credit.
It does not create a refund by itself if there is no tax owing.
It is most effective when there is taxable income and taxes have been paid during the year.
If income is low, we may review transfer opportunities to maximize the benefit.

If you would like, we can review your specific 2025 -2026 income situation and determine the best strategy for using the Disability Tax Credit.

12/30/2025

Happy New Year 2026!

Dear Clients and Partners,

On behalf of our entire team, we would like to thank you for your trust and cooperation throughout the past year. 2025 was a year of important decisions, responsibility, and forward movement, and we truly appreciate that you chose us as your financial partner.

May 2026 bring you:
• financial stability and confidence;
• thoughtful decisions and new opportunities;
• growth, security, and clarity in all financial matters;
• peace of mind in the present and confidence in the future.

We remain committed to supporting you in navigating financial matters, finding optimal solutions, and building long-term, sustainable prosperity for you and your family.

We wish you good health, success, and a prosperous year ahead.

Warm regards,
A&B TAX

12/14/2025

🇨🇦 NON-RESIDENT ACCOUNTS IN CRA — Important Information

If you are a non-resident of Canada or a Canadian business making payments to non-residents, it is important to understand when and why a CRA Non-Resident (NR) account must be opened.

A Non-Resident account is required when:
• Canadian-source income is paid to a non-resident (dividends, interest, rent, royalties, management fees, commissions, etc.)
• Withholding tax of 25% must be deducted at source (unless reduced by an applicable tax treaty)
• Withheld tax must be remitted to CRA on time
• A non-resident chooses to file a Canadian tax return under special elections (Section 216, 217, or 218)

📌 The account is not opened “just in case” — it is opened when the first taxable payment occurs.

⚠️ Failure to withhold and remit the 25% non-resident tax or late registration may result in penalties, interest, and CRA compliance issues.

If you are unsure whether an NR account is required or whether a tax treaty reduction applies, professional guidance is strongly recommended.

🇷🇺 NON-RESIDENT ACCOUNTS В CRA — Важная информация

Если вы являетесь нерезидентом Канады или канадской компанией, выплачивающей доход нерезидентам, важно понимать, когда и зачем необходимо открывать Non-Resident (NR) account в CRA.

Non-Resident account требуется, если:
• Выплачивается доход из канадского источника нерезиденту (дивиденды, проценты, аренда, роялти, управленческие услуги, комиссии и др.)
• Налог у источника в размере 25% обязан быть удержан (если не применяется пониженная ставка по налоговому соглашению)
• Удержанный налог необходимо перечислить в CRA в установленные сроки
• Нерезидент подаёт канадскую налоговую декларацию по специальным правилам (Section 216, 217 или 218)

📌 Такой аккаунт не открывается «на всякий случай», а открывается при возникновении первого налогооблагаемого платежа.

⚠️ Неудержание или неперечисление 25% налога нерезидента, а также позднее открытие NR account могут привести к штрафам, процентам и проблемам с CRA.

Если вы не уверены, применяется ли к вам налоговое соглашение или требуется ли NR account — лучше разобраться заранее.

12/11/2025

📣 Important Update from CRA: New Protocols for Authorizing a Representative (Effective July 15, 2025)

Beginning July 15, 2025, the Canada Revenue Agency (CRA) has changed the process for granting access to your tax information through the “Authorize a Representative” system.

🔐 What has changed?
E-Filers (tax preparers) can no longer gain online access to your personal tax information using the authorization function in tax software or the EFILE service.

To grant us access, clients must now complete additional authentication steps directly through CRA.
This means more interaction between clients and CRA during the authorization process.

🛡 Why the change?
These new protocols are designed to protect your privacy and enhance security.
As tax professionals, we have a responsibility to protect your personal information, and CRA must ensure they receive informed consent from every taxpayer before granting access to their account.

✔ Your existing authorizations remain valid.
The new rules apply only to NEW T1 authorization requests.

✔ Please be aware of the change in process, this may be very critical when filing your tax return.

11/19/2025

📌Canada’s 2025 Budget Passed Late for the First Time in History

Canada approved its 2025 federal budget in mid-November — an unprecedented delay that gives only partial clarity for families and businesses and highlights deep political divisions in Parliament.

The federal 2025 budget was approved only in mid-November — at the end of 2025, significantly later than the usual timeline.
This event is unprecedented: nothing similar has happened before in Canada or in other developed countries.

Despite the delay, the budget’s adoption provides clarity for the final months of the year regarding:

*support measures for families;
*tax changes for 2025;
*programs for business and the investment environment;
*funding for infrastructure and social projects.

Although the document was approved late, it gives families and businesses a general sense of direction for the coming year — but does not allow for full planning.
There is now a proposal to approve the budget late each year, with additional information to be released in the spring.

🗳 How the Vote Unfolded

The budget passed by a very narrow margin — 170 votes to 168, largely because no party in Parliament was prepared to face another election just months after the previous one.

Several MPs abstained or were absent for personal reasons, and in the event of a tie, the decision would still have been made in favour of the government by the Speaker’s tie-breaking vote.

📌 Why This Matters

The budget was not adopted because it had broad support —
but because the alternative would have been early winter elections.

Despite being a minority government, it continues to operate much like a majority, advancing large-scale initiatives in infrastructure, energy, immigration, and national development policy.

10/13/2025

Alberta Parent Support During School Closures

👩‍👩‍👧 Government Assistance for Families

💰 $30 per day for each child under 12
📅 Payments start October 31, retroactive to October 6
🖥️ Apply online starting October 14 → alberta.ca/parent-supports-during-school-closure

📘 Free Parent Toolkit
Weekly learning materials (K–12) available in English & French

👶 Child Care Options
Out-of-school care programs can offer full-day care for children under 13 during the strike.
Providers may contact their licensing officer for extended hours.

💡 Share this post to help other parents stay informed!

09/22/2025

09/22/2025

https://www.youtube.com/watch?v=oKjMyjDzqEg
Canada without a budget in 2025!
This is simply UNPRECEDENTED!
More than half of the new Cabinet are the same members continuing their work from the old government.

📉 From a financier’s perspective: markets hate uncertainty. Without a budget, borrowing costs rise, credit ratings come under pressure, and investment plans are frozen.

📊 From an accountant’s perspective: running a country without a budget is like managing a corporation without financial statements — no oversight, no control, and no reliable way to measure performance.

👤 From a responsible adult’s perspective: living without a budget means chaos. No family or individual can thrive without knowing income, expenses, and long-term goals.
If we expect this discipline in our own lives, shouldn’t we demand the same from our government?

“Just like every family needs a budget to know how much they can spend and save, a country also needs one. Without it, things quickly become confusing and uncertain. If it’s important for us at home, it’s even more important for the whole nation.”

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