Dear Client:

We hope that everyone is healthy at your household and place of work and enjoying the great weather of the last few days. March 13 will mark the one-year anniversary of the corona virus.

What have we learned?

The deadline for applying for CEBA ($60,000 interest free loan) is March 31, 2021. Please access this funding if you have not already done so.

Attached is the latest edition of Business Matters (Feb 2021 edition).

Personal tax changes relating to COVID-19

This is an interesting, comprehensive article but in reality, the changes are not hugely significant. If you work from home you can deduct certain expenses using either a simplified method (highly recommended) or a detailed method. Both are explained well in the article. Payments received under the five Covid-19 support programs listed in the article on page 2 are all taxable. It’s a little inconsistent that the Federal government requires employers and other payers to withhold income tax on payments to individuals but did not withhold income tax on COVID-19 benefits but this is a topic for a different time and place.

Other personal tax changes

Again, nothing major. Please note- the filing deadline is April 30 unless you or your spouse is self-employed in which case the deadline is June 15. The deadlines have not been extended for 2020. Something new is the Canada Training Credit (CTC). The CTC is explained on page 4. Thank goodness for computers to track all of the different tax related accounts (RRSP, TFSA, RESP, CTC, RDSP, CNIL, RHBP, etc. I probably missed a few. RHBP= registered homebuyers plan which I may have made up!).

Technology

Anyone that operates in an environment where computers are essential tools should read this article. I don’t understand much of the technical jargon but I don’t have to. I read more and more articles about computer networks getting hacked and it makes me think ……. Scary thoughts. Next-generation antivirus (NGAV) solutions are discussed on page 6. Something to ask your cybersecurity expert about.

Investment Options and Expectations

The wealth management article discusses the risks associated with 3 different types of investments which are.

*equities (stocks)

*fixed income (bonds)

*cash (GIC’s, savings accounts)

There is a neat chart on page 8 which compares rates of return for the 3 different types of investments. Keep in mind that the rates listed have not been adjusted for inflation.

That’s it!

I’m sure we will connect with each of you in some fashion during tax season.

In the meantime; questions, concerns, comments. Let us know.

Yours truly,

JIM M. SMITH CHARTERED PROFESSIONAL ACCOUNTANTS INC.

Jim M. Smith, CPA, CA