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CRA extends tax payment deadline to Sept. 30 The agency will not charge penalties and interest if payments are made by the new deadline The Canada Revenue Agency (CRA) is extending the payment due date for current-year individual, corporate and trust income tax returns including instalment payments from Sept. 1 to Sept. 30.... The CRA said Monday that it will not charge penalties and interest if payments are made by the extended deadline of Sept. 30. This includes the late-filing penalty as long as the return is filed by Sept. 30. The CRA understands that individuals and businesses might be dealing with difficulties in meeting their financial obligations, including paying tax debts they may have incurred prior to the crisis, the tax agency said in a press release announcing the changes. The CRA is also waiving interest on existing tax debts related to individual, corporate and trust income tax returns from April 1 to Sept. 30, and for GST/HST returns from April 1 to June 30. While this measure for existing tax debts does not cancel penalties and interest already assessed on a taxpayer’s account prior to this period, it ensures that a taxpayer’s existing tax debt does not continue to grow through interest charges during this difficult time. This measure provides immediate relief to impacted taxpayers, the release said. The previously extended filing due dates for individual, corporate and trust income tax returns remain unchanged, the CRA said. However, recognizing the difficult circumstances faced by Canadians, the agency will not impose late-filing penalties where a current-year return is filed late, provided that it is filed by Sept. 30. The CRA is encouraging Canadians to file their tax returns as soon as possible particularly individuals receiving credits and benefits such as the Canada Child Benefit even though payment deadlines are being extended. The CRA has temporarily suspended interruptions for those unable to file their income tax and benefit return by the June 1 deadline. If a 2019 individual tax return has not been assessed, the CRA is calculating benefits and/or credits for July to September 2020 payments based on information from 2018 tax returns. However, if 2019 individual tax returns are not received and assessed by early September, estimated benefits and/or credits will stop in October and individuals may have to repay the amounts that were issued as of July, the CRA said.

A tax strategy about nothing What Seinfeld can teach us about the value of staying the course Like a lot of families, we’ve been doing things differently while social distancing during the pandemic. In addition to dusting off board games and semi-regular family walks, our latest streaming service has allowed us to catch up on classic TV, including Seinfeld....Continue reading

https://www.youtube.com/watch?v=8nk0M59c1_M&authuser=0 How Canadians near and already in retirement approach the next stage of their lives amidst COVD-19. How retirement has changed over the years and where it may go in the future.... The impact on retirement and retirement planning for Canadians financially affected by the COVID-19 pandemic. 1) The importance of establishing goals, 2) Creating a plan 3) The value of advice. Key insights 40% of pre-retirees feel negative about life retirement. For those with a written financial plan, only 21% of them feel negative about retirement. Value of advice 48% of pre-retirees feel the performance of their investments is holding them back from retiring when they would like to. This shows the Importance of being invested in a quality performing funds 50% of those financially affected by COVID-19 are reporting a drop in savings to invest compared to a year ago. 38% of respondents say that they are only going to invest in very safe investments for a long time, because of everything that has happened in the markets the last little while. This shows the importance of educating investors on the importance of long term investing. It’s important to act as behavioral coaches to investors so they don’t get caught up in the news. Many investors who invested very conservatively after the 2008 crisis still haven’t recovered from missing out.

Financial advice key to a cushy retirement Conference Board report evaluates the impact of advice on individual savings People who receive financial advice are more likely to enjoy a cushy retirement than people who don’t and they’ll also make a greater contribution to GDP, according to a new report.... The report, prepared by the Conference Board of Canada for the Investment Funds Institute of Canada (IFIC), evaluates the impact financial advice has on individual savings by comparing two hypothetical savers with the same income: one who uses an advisor, and one who doesn’t. Early savers those who start saving at age 25 who don’t use an advisor spend 3% more during their working years and have 19% less savings in retirement. A financial advisor could have boosted an early saver’s retirement savings by 55% and retirement consumption by 23%, the report found. Late savers those who start saving at age 35 who don’t use an advisor were also assumed to spend 3% more during their working years, ending up with 20% less savings in retirement. The report found an advisor could have boosted a late saver’s retirement savings by 60% and retirement consumption by 25%. The report also found that financial advice contributes to the economy. If the number of people who use an advisor increased by 10%, household wealth would increase by $2 billion, real GDP would increase by $900 million and tax contributions would increase by $7 billion, according to the report. This research demonstrates the important long-term benefits of saving money with the guidance of a financial advisor, Paul Bourque, president and CEO of IFIC, said in a statement. The increase in savings not only enables Canadians to more effectively prepare for retirement, it strengthens the broader economy. However, the report did note that recent survey data indicate that many working Canadians aren’t preparing for retirement. As such, a significant share of the future elderly will likely experience declines in their consumption in retirement, the report stated.