Information returns

The CRA opens for filing information returns on Monday, 7th January, 2019. These include T3, T4, T5 and NR-4 returns. Affected individuals include those with Trusts, Estates, Employees, pay interest or dividends, or who are a non-resident Landlord.

I have been contacting affected clients by email and by phone to get their information in. Please feel free to call me if you have not received any message yet.

These returns are due in the next month.

2018 Statistics

Here are some statistics for 2018, showing how hard I work for my clients. (Most people will not be interested, but I thought it was interesting.)

In 2018, I:

  • Received 986 Phone Calls for a total of 45.7 hours,
  • Placed 2,054 Phone Calls for a total of 135.6 hours,
  • Received 921 Text Messages,
  • Sent 799 Text Messages,
  • Sent or received a total of 7,234 emails,
  • Received or sent a total of 1,443 file transfers (more than one file can be in a transfer,)
  • Received or send a total of 61 faxes,
  • Received a total of 25 inquiries from this website, and
  • Sent 20 envelopes by Registered Mail.

Tax Instalments Due

Be advised that personal tax instalments are due on December 15, 2018. Any individual who received a request to pay personal instalments in August or September, needs to attend to this matter before the due date.

Claiming Cannabis on your personal tax return

A question raised was if the purchase of Cannabis from a retail or provincially regulated Cannabis retailer can be claimed on a personal tax return as a medical expense.

The short answer is no.

The claim for cannabis is made under Paragraph 118.2(2)(u) of the Income Tax Act. To qualify, the patient must be authorized under the Federal Acts and the purchase must be made from either Health Canada or other certain specified production licenses. The provincially regulated Cannabis retailers who opened on Oct 17, 2018 do not hold the licenses under that Paragraph so no purchases made from those locations will qualify.

It is entirely possible that the Act may be changed. But presently, this is what the law says.

If you find that the retail source is cheaper than the medical source, you may wish to consider if it is to your benefit to purchase from the retail source. If that is your choice, you must evaluate the lost benefits from any insurance claims which you will be entitled to as well as the impact on your tax return from no longer being able to make a medical claim for the same item. This evaluation is based on your personal circumstance and is beyond the scope of this article. You are welcome to engage my services to assist you with this, by using the Contact Me tab on your screen.

Instalments – December 2018

This is a reminder that personal instalments are due on December 15, 2018. The amount due is generally either ½ of the total amount due in April 2018, if you did not receive a request to pay instalments earlier this year, or ½ of the amount remaining from your tax bill in April 2018, less the amount that you were requested to pay on March 15, June 15, and Sept 15, 2018.

Note that my clients can elect to have reminder emails sent out two weeks prior to the instalment due date.

You may also arrange for pre-authorized debit withdrawals from your bank through the CRA’s My Account service.

Failing to prepaid the instalments will result in non-deductible interest charges.