Here at Danielle’s SOS Financial we are committed to providing you with the largest tax refunds you deserve and finding every tax deduction you are eligible for.
To make sure you don’t miss something, and to help you get every deduction and credit you can, we’ve prepared this handy checklist.
Essentials and General Items
Current contact information, including SIN numbers, of the entire family
Last year’s tax return
Last year’s spousal return
Last year’s notice of assessments for the entire family
Key life events in recent years – marriage, child, new home, etc
Child care expenses
Investment income T5 slips
Medical, dental and other private health care expenses
T2202A for tuition and education amounts
Public transit passes
Details on any matrimonial or child support payments, if applicable
Direct Deposit information, if changed from last year
TFSA statements and contribution receipts
RRSP statements and contribution receipts
Confirmation on foreign property holdings
Information on any property, stocks or other assets bought and sold
T4E for income from Employment insurance
Charitable donation receipts
Interest paid on student loans
Political contributions
Employees
T4s, T4As, T4RSPs, T4RIFs and other tax slips
T2200 for Home Office eligibility signed by employer
Home Office expenses: utilities, mortgage, stationary, other purchases, etc
If eligible for motor expenses, details on kms driven for work
Professional dues, insurance, union dues (not reimbursed by employer)
Moving expenses (not reimbursed by employer)
Tools purchases documentation for trades people
If commissioned salesperson, documentation for advertising, promotion, meals & entertainment and other expenses
New motor vehicle purchase details and other motor vehicle expenses
Legal expenses related to employment or child support amounts
Small Business Owners & Sole Proprietors
Software backup of bookkeeping records
Manual records of sales and expenses if books are not kept in a software
Partnership agreement, if applicable, along with profit sharing perentage
Vehicle expenses used in business – vehicle cost, mileage, maintenance, etc
Key contracts and agreements summary or soft copy of conracts
Details on capital assets purchased and sold during the year
Home office expenses, similar to employment section above
Inventory count records – last year and end of current year, if applicable
Rental Property Owners
List of units owned with address and ownership percentage
Expenses on each unit, categorized by expense type – such as, mortgage interest, real estate agent fees, utilities, cleaning fees, management fees, property tax, office expenses, etc
Copies of all rental agreements
Rental income details for each unit
Details on capital additions (greater than $500) categorized by unit
If you’re a small business owner, you might be wondering if you need to get a bookkeeper or an accountant – or both.
And now that you understand the need for bookkeeping, you’re might be wondering, “How does it differ from accounting?”
Good question.
The words “bookkeeper” and “accountant” are often used interchangeably. However, there are some key differences that determine the main responsibilities of each role.
–Bookkeeping is a Subset of Accounting–
An accountant, professional bookkeeper, or an employee of the business can do your bookkeeping.
If you’ve just started a business, chances are you’ll be doing the bookkeeping yourself.
This is no bad thing. When launching a new business venture, it’s crucial that you have an intimate grasp of your financial situation. What better way than to do the bookkeeping yourself?
Essentially, bookkeepers take care of the day-to-day financial work.
They keep detailed and accurate financial accounts and use this financial clarity to help make informed business decisions.
–Accountants are Financial Experts–
Accountants are usually qualified, registered members of a statutory association. So they often have titles like CPA (Certified Public Accountant) or CA (Chartered Accountants).
That’s how they can charge the big bucks.
These experts will use the accounts provided by the bookkeeper. They focus on analyzing the transactions to provide financial advice.
They’ll also use the information in the accounts to file tax returns and other reports.
Whereas bookkeepers handle the day-to-day financial tasks, accountants often step in on a quarterly basis to provide advice and make adjustments.
Attention all customers, affiliates, associates, friends, and family of Danielle’s SOS Bookkeeping Services, I hope I may implore you to please kindly take a few minutes to read this service update. We stand here May 2, 2021 and you are all overdue for an explanation in regards to the status of Danielle’s SOS Bookkeeping Services. There have been many rumors, nasty stories, and bad publicity about my company popping up all over social media and it is time I cleared them up. My hope is that moving forward we can mend bridges and work to clean up TLC and catch up on your files if needed and re-form our business partnerships moving forward.
Timeline:
I will first start by providing a timeline and an explanation for each time period.
December 2020
At the beginning of December, I had to make a very difficult decision to let go of several of our staff members and an external contractor. For those who have been dealing with us for many years, you will know their names. If you were previously dealing with them in any capacity inside my business this is the official notice that they are no longer part of the business. The parting of ways came about due to budgetary restrictions, and a few personal conflicts. There have been no fraudulent activities or crimes that have taken place to warrant the dismissal. One was our senior bookkeeper handling a portion of our corporate book of business, another, was our Personal Tax specialist and the third was contracted to assist with Payroll, Accounts Payable and Accounts Receivables. These roles have been absorbed by me at the moment as we look to bring on new staff.
January 2021
For the last 4 months, I have been driving the ship along with our 2 remaining staff members Mohamed and Jocelyn. Additionally, we have continued to operate with our external partnership with Peter Friesen who assists me in preparing our client’s financial year-end documents and corporate tax returns.
Meet our current staff:
Mohamed, is currently working in a bookkeeping capacity taking care of his portion of our book of business. As of May 6th Mohamed will be working virtually for us from another location. We are so pleased that he has a chance to continue doing his post secondary studies while spending some time with family during these hard times. He will be best reached by email. Phone calls will be returned weekly around his split schedule of working and studying. This will be given out to his clients as soon as everything is finalized.
Jocelyn, has personally spoken with 99% of you, as she is our lead administrator, receptionist, and office coordinator. She has been working diligently in this role for the last 2 ½ years. She is responsible for greeting and speaking to each one of you who comes to the office physically and she has largely been the contact person on the phone and behind the admin company email. I would like to take a moment to acknowledge how much she has done for the company this year and I would ask that extra kindness and understanding is extended her way when reaching out to the office. She may be dealing with over 100 clients per day and has managed to juggle pretty much all physical and digital paperwork coming in and out this tax season.
Peter has been my external business partner since I started my business back in 2014. He has spent the last 30+ years working hard to provide clear, concise, accurate and affordable accounting services to Edmonton and area clients and has been a vital part of my business’ successes over the last 7 years. As needed, in addition, we have a small crew of contractors also assisting with completing personal tax returns this year.
Personal Explanation
Now comes the part where I explain what has been going on with me. First, let me say that if I have not had the pleasure of meeting with you in person I want to extend a sincere thank you for supporting my business and trusting us with your financial and taxation needs. Since I started this business back in 2014 I have worked hard to cultivate strong connections with all of our clients. Our mission statement has always read “Do not strive to be successful, strive to be valuable.” This fundamental idea allows us to focus on providing not only basic accounting, bookkeeping, and personal taxation services but also allows us to spend time and invest in educating our clients about how to make their money and finances work for them. We pride ourselves in having access to tools, programs, and resources that are freely available to our clients which help contribute to better financial planning, long-term strategizing, and business development.
Up until recently, this has been a strong statement I have been dedicated to upkeep. However, in the last few months, this has noticeably slipped with longer deadlines than anticipated on client returns, lags in communication, and a tight-lipped mentality where little to no details have been disclosed, leading you to feel we are not living up to our prior established “value”. This is incredibly understandable and I humbly accept that some of you have had your trust broken and our business relationship will not continue forward. I stand for everyone’s right to choose who they deal with at any time and there is no resentment. I do need to clarify though, we are not in the business of holding client paperwork hostage, threatening customers, or purposely ignoring and avoiding our clients despite the claims made by former clients online. It is disappointing to see people lie so blatantly about us online. Yes, we have had moments of falling behind, yes, our communication has been unacceptable, but we have never gone out of our way to cause harm to our clients like this.
“I am the first person to say I am very humbled by my mistakes and shortcomings in dealing with the current situation and sincerely apologize for the poor service.” This ends now. Moving forward we are more comitted than ever to get back to a place of “Value” for each one of you.
Before I continue I want to state clearly that I normally do not mix personal and business life is at all possible. When we own businesses it is so easy to meld your prior personality and ambitions into the business and you can really lose yourself. In my situation, I can honestly say the personal dealings I am handling have reached a level as I’ve never experienced before. Please be aware the next few paragraphs will outline a few unpleasant activities and a few topics that are uncomfortable for most on the best of days. I can empathize but I feel due to the severity of the backlash we have experienced on social media, in order to restore any part of our reputation I must make it clear why I would choose to neglect my business in favor of external affairs.
Since December I have been working with the Edmonton Police Service in partnership with the Zebra Center, to establish several cases and seek judgment against my ex-boyfriend for physical, sexual, and emotional abuse, not only in regards to myself but more importantly my two young daughters. We only recently uncovered the latest portion regarding our daughters in early March. Due to the highly sensitive nature of these accusations and activities, I have not been able to disclose or discuss any details with any of you. This has been a truly horrendous experience and despite my best efforts, I have simply not been able to fully juggle our extremely (fortunately) busy business and the new and ongoing obligations in regards to these matters.
I have had many questions regarding why some of our social media accounts were taken offline about a month ago and the simplest answer I can give you is that it was a decision based on legal counsel as my ex-boyfriend has also been targeting and attempting to attack my business and the reputation I have spent so long creating in this city. Removing platforms for hate speech and death threats was the only sensible option.
We hope to have our social media back up and running within the next month. This timeline will depend on the progress of the external criminal investigations. The safety of my staff, family and close friends is my top priority.
This information has been shared for administrative purposes only. I am not available to answer questions or concerns regarding my personal matters. This is an ongoing police investigation and no details will be disclosed further to this. If you would like to speak to me about your business and/personal taxes you can coordinate with Jocelyn by calling 587-754-2910 or emailing admin@daniellesosbookkeeping.com.
“I am sorry“
I am truly sorry for the major inconvenience it created for all of you. I am able to finally post a public update and due to the large volume of clients, we serve I chose a public forum as I thought it would be the cleanest way to share this information. We are still dealing with this issue and don’t anticipate a close to it any time soon however, I am refocusing and recommitting back to my business starting immediately. I have worked too hard to fold this business and I am done letting all of you down. I am re-evaluating my schedule, reviewing all of your deadlines, and working hard to get another few individuals hired in our office who can assist with getting some of our additional workloads off my plate so I can go back to assisting all of you in my regular capacity.
We have open job postings on Indeed, Facebook & LinkedIn. I will post links to those shortly.
We are currently hiring for “Accounting Technicians” (2 openings)
The restaffing process is not instantaneous. As an office, we are hoping to have another dose of patience from you as we keep working away on completing personal income tax returns, and corporate year ends.
Deadlines – Interest & Penalties
The April 30, 2021 deadline may have passed, however, CRA accepts personal income tax filings all year. While they have not extended the deadline despite many desperate pleas from accountants and tax preparers Nationwide, they have committed to postponing the “INTEREST ONLY” portion of any 2020 tax filings for those who claimed at least one COVID benefit payment in 2020. (See full release here with rules and eligibility) https://www.canada.ca/en/services/taxes/income-tax/personal-income-tax/get-ready-taxes/pay-taxes-owing.html
The next upcoming deadline is the sole proprietorship deadline of June 15, 2021. If you or your spouse have a small business in your household you qualify for the delayed filing deadline.
If you normally get a refund, there is NO tax deadline for you. CRA interest & penalties only apply if you owe taxes.
Please see below some resources in regards to how penalties and interest are calculated, and finding relief if you qualify:
If you are in need of assistance with putting in a claim for relief of interest and penalties please let me refer you to Frank Flynn. Frank’s business is all about assisting Canadian tax payers find relief of CRA interest and penalties and I can personally vouch for him being the best in the business. The best part is that his rates are incredibly reasonable.
“I understand that not everyone has the time, legislative knowledge, or language skills to put together a compelling taxpayer relief case. I can help.”
Moving Forward: Next Steps
Thank you if you have managed to reach through this entire document. I am grateful to have your time and attention. I am truly sorry that this year could not be a bit more like business as usual considering the crazy year we had in 2020. I am very optimistic, however, that moving forward we will rapidly adjust and move back into a place of trust, dependability and efficiency we have been known for in the past.
We understand the phone lines have been busy and our inbox has been full repeatedly. This is simply due to the high volume of individual personal income tax return clients we service and it is the thick of tax season. In addition to our regular workload there have also been over 70 changes to personal taxes. We have had to learn these new programs and where last year it took us roughly We can get up to 200 calls in a day and our emails are also very busy. I would urge you if you have sent an email and/or left a voicemail to please be patient for a few days while we work through everyone’s requests and inquiries.
May 2021:
I am pleased to announce we have partnered with a local Edmonton company that will be assisting us with our administrative phone and email tasks. This means when you call in it may not be Jocelyn who answers your calls now. She is however still the hands-on person at the office. We have listened to your concerns and this is the simplest way to get more contact time in with all of you.
Our website is still a great way to contact us as well. I personally again want to say thank you for your patience and understanding as we continue to navigate this as the situation unfolds.
Final Note
On my personal Facebook I have also posted information about my ex partner. He is currently under investigation and has been charged with several different crimes pertaining to the abuse of my daughters as of April 15, 2021. He is prohibited as a condition of release pending court of staying 100 meters or more away from myself, my family, and my daughters. Additionally, he is not to be within 100 meters from any parks or recreation facilities that would have kids under 16 present.
With COVID already devastating our families and taking our loved ones away we hardly need another pandemic on our hands. This is a very serious pandemic sweeping our country in the last few years and we need to take a stand to stop it from happening to anyone else. Our kids are our future, they deserve the best chance, resources, tools and education we can reasonably afford to provide them.
Here are some links for more information and how to help stop this current fight:
VANCOUVER (NEWS 1130) – Accountants from across the country are pleading to the federal government for an extension on this year’s tax deadline because the pandemic has stretched resources and added new tax rules.
A change.org petition with more than 75,000 signatures is calling for Canada Revenue Agency to extend the deadline to file from April 30 to June 15. Many signatures are from people who say they are accountants and are physically and mentally exhausted from a year that has been filled with non-stop work and new tax breaks to navigate.
“Small accounting firms have really struggled and been overwhelmed,” income tax consultant Hugh Woolley said “For the past year with helping their clients. Prepare a lot of new materials, in addition to what the work they were already done, which includes wage subsidies and rent subsidies so these are taking huge amounts at a time, and they’re very high priority for their clients because they’re really the life line that’s keeping these businesses afloat.
Last year, the federal government extended the tax filing deadline to May 31, but officials have said this year, it will not be the case.
“During April, you know, it’s 18 hour days for most accountants, so you know you add on a little bit of a marginal extra bit of work and if you just can’t meet the deadline,” Woolley “I mean we’re always touching go to the last minute every year. So with this additional workload that’s been there, it’s it’s really impossible to meet these deadlines.”
While Ottawa has said it is not extending the deadline, Quebec has taken a different approach by suspending penalties and interest on tax returns filed after the April 30 deadline for the entire month of May. On the CRA website it states, it is important to file on time if you receive COVID-19 recovery benefits, such as the Canada Recovery Benefit Canada Recovery Caregiving Benefit or Canada Recovery Sickness Benefit. Failing to do so could mean your payments could be stopped.
“[Accountants are] very scared their clients are going to be subject to penalties, and they’re very scared that their clients are going to hold them responsible for not getting their information done in time,” Woolley said. “And I think that’s why so many accounts are really really concerned and and and you know it, causing a lot of mental stress and anguish for them.”
Canada Revenue Agency did not return a request for an interview.
The Canada Revenue Agency (CRA) is committed to putting people first and providing the income support that Canadians need during the COVID-19 pandemic. Please see below quick links to essential resources and FAQs.
Interest relief for individuals with a taxable income of $75,000 or less in 2020 and received a COVID-19 benefit
If you meet all the eligibility criteria below, you will get interest relief on your 2020 taxes owing. You still need to file your tax return by the due date to avoid paying any late-filing penalties.
Eligibility criteria
Interest relief on 2020 taxes owing will be given if you meet all of the following:
Your total 2020 taxable income was $75,000 or less
You received at least one COVID-19 benefit in 2020:
Canada Emergency Response Benefit (CERB)
Canada Emergency Student Benefit (CESB)
Canada Recovery Benefit (CRB)
Canada Recovery Caregiving Benefit (CRCB)
Canada Recovery Sickness Benefit (CRSB)
Employment Insurance (EI) benefits
Provincial or territorial emergency benefits
You filed your 2020 income tax and benefit return
You need all the above to be eligible for interest relief.
If you meet all eligibility criteria and have filed your 2020 tax return, the CRA will automatically apply interest relief on your 2020 taxes owing.
You will not have to pay interest on any amount owing from your 2020 taxes until April 30, 2022.
Interest relief only applies to your 2020 taxes owing and not on previous or other debts with the CRA.
Late-filing penalties still apply
File your tax return early or before the due date to avoid being charged a late-filing penalty and disruption of your benefit and credit payments such as the Canada Child Benefit (CCB) and the GST/HST credit.
The late-filing penalty is 5% of your 2020 balance owing, plus an additional 1% for each month you file after the due date (up to a maximum of 12 months). Penalty charges still apply and are different from interest charges. Penalty charges are not included as part of this interest relief.
The CRA can work with you and find flexible options to pay your balance owing. Find ways to pay your 2020 taxes owing.
The Income Tax Act and its Regulations contain many election provisions that give you the opportunity to decide on an alternative tax treatment in conducting your financial affairs for income tax purposes. Most election provisions do not:
permit you to file an election once the due date for making the election is missed; or
give you the ability to modify or cancel an original election that was filed on time.
For details about the income tax elections that can be filed late, amended, or revoked, and how to send your request, see Late, amended, or revoked elections.
Refund or reduce the amount payable beyond the normal three-year period
For individuals (other than a trust) and graduated rate estates, the Income Tax Act sets a three-year limitation period from the:
end of the tax year to file an income tax return to claim a tax refund
date of the original notice of assessment to request an adjustment to an assessment issued for a previous tax year
As of January 1, 2016, a testamentary trust that is not a graduated rate estate can no longer file an income tax return or ask for an adjustment for a refund or reduction in tax payable after the normal three-year period has expired for the 2016 and later tax years. Testamentary trusts can file a return or ask for an adjustment for the 2015 and previous tax years.
Public service employees affected by Phoenix payroll system issues
If you believe that the penalties or interest assessed by the Canada Revenue Agency (CRA) for your 2016, 2017 or 2018 tax year are a direct result of Phoenix payroll system errors, you can submit a claim under the Phoenix Claims Process administered by the Treasury Board of Canada Secretariat. Each claim will be considered on its individual merits and settled based on valid receipts and other supporting documentation.
If you are not reimbursed through the Phoenix Claims Process for the penalties or interest assessed by the CRA, you can submit a request for review under the taxpayer relief provisions. Go to Cancel or waive penalties or interest for more information. Be sure to include the decision letter from your department or agency and any relevant documents when submitting your request.
For more information on the tax implications of Phoenix payroll issues, go to Frequently Asked Questions.
The Canada Revenue Agency (CRA) administers legislation that gives the Minister of National Revenue discretion to:
cancel or waive penalties or interest
accept certain late, amended, or revoked income tax elections
issue a refund or make an adjustment to refund or reduce tax payable beyond the normal three-year period for an individual, a graduated rate estate, and for certain tax years, a testamentary trust
This legislation is commonly called the taxpayer relief provisions.
Find out what’s new for 2020 and your filing and payment due dates, gather your documents to report income and claim deductions, and choose how you want to file and send your completed tax return to the CRA.
There are still 2 more weeks until April 30, 2021’s deadline! if you’re still waiting to file your taxes make sure to check out all the essential CRA links you need here!
How COVID-19 benefits impact your taxes Reporting COVID-19 amounts on your tax return, tax slip issues, options if you owe, and eligibility for interest relief
What’s new for 2020 taxes Changes to benefits, credits, and expenses for individuals and families, and updates to the 2020 income tax package
Be aware of key dates for 2020 taxes Filing and payment due dates for taxes, contributions, instalment payments, and any amounts you may owe Filing dates for 2020 taxes
Apr 30, 2021: Deadline to file your taxes
Jun 15, 2021: Deadline to file your taxes if you or your spouse or common-law partner are self-employed
Payment date for 2020 taxes
Apr 30, 2021: Deadline to pay your taxes
Know what to report and claim
Report your income What to report as income, including COVID-19 benefits, self-employment income, foreign investments, assets, or other earnings
On April 15, 2021, Revenu Quebec announced that their tax filing and payment due date has been extended to May 31, 2021.
Federal Tax Return Deadline Still April 30th
Although federal tax returns still must be filed by the Friday April 30, 2021 due date, some (not all) taxpayers who received CERB, CESB, CRB, CRCB, CRSB, EI benefits, or similar provincial emergency benefits will not required to pay interest on any outstanding tax debt for the 2020 tax year until April 30, 2022.
Everything you need to know about our latest features and updates.
NEW features as of: January-March 2021
Employee Self Setup
for: QuickBooks Payroll
Save time and improve accuracy with self-setup. New employees can now provide their information directly via the QuickBooks Workforce portal, and have ongoing access to their paystubs and T4/RL-1.
You can now forecast cash flow up to 24 months ahead. You can also add recurring transactions to the cash flow planner to get a more accurate view of your finances. To top it all off, you can download your forecasts as a PDF to easily share with team members, stakeholders, or your accountant.
Year-end forms filing tool
Track contractor payments, run reports, and file T4A and T5018 slips right from QuickBooks Online—that means you can generate and file contractor tax forms all in one place. Learn more
Work-papers now in the left navigation
For: QuickBooks Online Accountant
Workpapers is now accessible in the left navigation under Books to Tax within your client’s QuickBooks Online file. Workpapers offers accountants and bookkeepers year-end tools for their client engagements. Keeping track of documents, reviewing financials, and preparing financial statements is all in one place.Year-end tasksQuickBooks Online Accountant
Coming soon: we’re adding a new year-end task list in Workpapers so you can collect and organize all of your year-end to-dos. Status flags will show what tasks are in progress, completed, or waiting to be done. Having your tasks right where the work makes it easy to keep track of where you’re at and easily show your progress with your engagement.
Client letters
For: QuickBooks Online Accountant
Client letters are now available in QuickBooks Online Accountant. With this new feature, you can now create your client letters in the same place you do your books to tax work — simplifying your year-end process. Check it out
Payroll overview page
QuickBooks Payroll
The overview page is your one-stop source for everything Payroll. Keep track of deadlines, important employee dates, and your most commonly used reports, forms, and settings all in one place. Visit the Payroll tab to view the Overview Page.
QuickBooks Time
TSheets time tracking software has been rebranded to QuickBooks Time. Sign up for an easy way to keep your team on task and add accuracy to your invoicing. Staff can clock on and off using any device and approved hours integrate with QuickBooks Payroll.
Automatically include each employee’s accrued vacation liability to your chart of accounts. Set up (or edit) an accrued vacation policy and QuickBooks will automatically calculate the associated annual hours.
In 2017, the Alberta and the federal government signed an agreement for federal investments to support early learning and child care in Alberta. The Government of Alberta has renegotiated the terms of the agreement to change how these investments are distributed. This includes changes to:
Funding under the previous bilateral was used for approximately 7% of all children accessing licensed or approved child care in the province (or 2% of all children age from 0 to 6 in the province) through the $25-a-day ELCC Centre pilot. Now, 26% of all children accessing licensed or approved child care in the province will benefit from the new subsidy increase (or 7% of all children age from 0 to 6 in the province).
This is a more equitable distribution of taxpayer dollars as it directs support to lower-income families and children and benefits more Albertans.
Figure 1. Children enrolled in the previous $25/day pilot vs. number of children whose families will pay $25/day or less in child care fees now. Figure 2. A single parent earning $60,000 a year with a toddler in full-time daycare
Child care subsidy
Changes to the child care subsidy will come into effect August 1, 2020. The new subsidy model is simpler and easier to understand.
Families of over 28,000 children supported by the child care subsidy will see an increase to their subsidy rate, with about 24,500 seeing an 18% increase to their subsidy rate. This means:
a fully subsidized infant will be supported by $741/month (previously $628/month)
a fully subsidized toddler will be supported by $644/month (previously $546/month)
a fully subsidized school-age child will be supported by $366/month (previously $310/month)
Under the previous bilateral agreement, $45 million in federal funding benefitted families of only about 7,500 children through the $25-a-day pilot. Under the new bilateral agreement, lower-income families of about 16,000 children will pay $25-a-day or less in child care fees.
Parents can access more information on the new rates and how to apply on the child care subsidy website.
If you have already applied and have been approved, you will be reassessed and any changes will come through automatically. The new subsidy rate increase comes into effect on August 1, 2020.
Eligibility
Families with an annual income of less than $75,000 will be eligible for full or partial subsidy.
All families currently receiving subsidy that have an income of $75,000 or higher will continue to receive subsidy up until their subsidy period ends.
Subsidy rate
The new subsidy model represents an 18% increase to the current maximum subsidy rates.
Table 1. Maximum subsidy rates
While each family’s exact income and tax situation are different, for illustrative purposes, a family with a single parent with an income of $61,000 per year, with one toddler attending day care full time, will be eligible for $483 per month in subsidy.
Figure 1. Additional funding for early learning and child care
Figure 2. Average daily child care fee for parent on full subsidy
Early Learning and Child Care Centres
Funding for the 22 provincially funded pilot centres will conclude on July 31, 2020, which provided a 4-month extension for programs to have sufficient time to transition. Funding for the 100 federally funded pilot centres launched in 2018 (those funded under the original bilateral agreement) will conclude on March 31, 2021.
Child care quality
The Flight curriculum framework will allow child care providers to incorporate high quality early childhood education into their daily routines, through the online course and coaching supports offered.
Online course and coaching support will be made available to all child care centres across the province, ensuring high quality child care options for parents no matter where they live.
The new Inclusive Child Care Program will give child care providers access to consultation, coaching, professional development and funding for additional staff to increase their capacity to include children who have extra support needs.
Funding will also be directed to create more child care spaces in high demand areas, to address smaller communities with few spaces or explore needs like after-hours child care.
Flight curriculum
Portions of the $45 million will be used to expand access to the Flight curriculum framework and its related courses, coaching and supports. Previously, only pilot ELCC Centres had access. Now, all licensed and approved programs will have access to these resources which guide and support the important work of early childhood educators. This will make it easier to incorporate high quality early childhood education into the educators’ daily routines through the online course and coaching supports offered. Flight will also be made available to Out-of-School Care programs.
Inclusive Child Care Program
The new Inclusive Child Care Program (ICC) will provide licensed child care programs with access to provincially-aligned training, resources and supports that enable the inclusion of children with extra support needs. This will mean consistent resources and supports are available to all licensed child care providers and all Alberta families. Previously, the Supported Child Care Program was managed regionally which created inconsistencies from region to region.
The penalty for failing to file a return is $25 per day for up to 100 days (minimum $100 and maximum $2,500). This penalty does apply to Form T1142.
When failing to file is done knowingly or under circumstances amounting to gross negligence, the penalty is $500 per month for up to 24 months (maximum $12,000), less any penalties already levied. This penalty does not apply to Form T1142.
After 24 months, the penalty is 5% of whichever of the following resulted in the requirement to file the information return, less any penalties mentioned above already levied:
the cost of the foreign property
the fair market value of the property transferred or loaned to the trust
the cost of the shares and indebtedness of the foreign affiliate
Note – This penalty does not apply to Form T1142.
The CRA may issue a demand to file a return to a person or partnership under subsection 233(1) of the Income Tax Act. If so, and if the person or partnership knowingly or under circumstances amounting to gross negligence fails to comply with the demand, the penalty is $1,000 per month for up to 24 months (maximum $24,000), less any penalties already levied. This penalty does apply to Form T1142.
False statements or omissions
A penalty applies to people who knowingly or under circumstances amounting to gross negligence make false statements or omissions in an information return.
For Form T1142, the penalty is the greater of either:
$2,500 or
5% of whichever of the following false statement or omission was made about:
the fair market value of the distributed property or
the indebtedness
For the other information returns, the penalty is the greater of either:
$24,000 or
5% of whichever of the following false statement or omission was made about:
the cost of the foreign property
the fair market value of the property transferred or loaned to the trust or
the cost of the shares and indebtedness of the foreign affiliate
Due diligence exception for penalties
The penalty for omissions on Forms T1134 and T1141 does not apply to taxpayers who make diligent efforts to get the requested information and who:
disclose in the return the unavailability of the information and
file the information within 90 days of it later becoming available
The Canada Revenue Agency (CRA) is committed to putting people first and providing the income support that Canadians need during the COVID-19 pandemic.
Interest relief will be given to individuals who meet all of the following:
Your total 2020 taxable income was $75,000 or less
You received at least one COVID-19 benefit in 2020:
Canada Emergency Response Benefit (CERB)
Canada Emergency Student Benefit (CESB)
Canada Recovery Benefit (CRB)
Canada Recovery Caregiving Benefit (CRCB)
Canada Recovery Sickness Benefit (CRSB)
Employment Insurance (EI) benefits
Provincial or territorial emergency benefits
You filed your 2020 income tax and benefit return
You have a balance owing for your 2020 taxes
You meet the above criteria. The CRA will automatically apply interest relief on your 2020 taxes owing until April 30, 2022.
If you meet all eligibility criteria and have filed your 2020 tax return, the CRA will automatically apply interest relief on your 2020 taxes owing.
You will not have to pay interest on any amount owing from your 2020 taxes until April 30, 2022.
Interest relief only applies to your 2020 taxes owing and not on previous or other debts with the CRA.
Late-filing penalties still apply
File your tax return by the due date. If you file late, you will be charged a 5% late-filing penalty on top of what you already owe, plus an additional 1% for each month (up to a maximum of 12 months).
Interest will start after April 30, 2022 on any amount owing for the 2020 tax year.
The CRA can work with you and find flexible options to pay your balance owing. Find ways to pay your 2020 taxes owing.
Foreign Reporting: Questions and answers about penalties
If someone left Canada and became a non-resident after the enactment of the foreign-reporting rules, what can the CRA do if that person doesn’t file the information returns required under foreign-reporting legislation?
The foreign-reporting requirements provide for significant penalties for failing to file information returns by the due date. These penalties apply whether or not the person later becomes a non-resident.
If a person becomes liable for these penalties and doesn’t pay the amount owing, we will start our usual collection action.
Is each information return that isn’t filed subject to the maximum penalty of 5% of the amount to be reported?
The penalty for failing to file any of the foreign reporting information returns is the greater of either $100 or $25 per day for each day that the return is late (maximum of $2,500).
When a person fails to file an information return (except for Form T1142) knowingly or under circumstances amounting to gross negligence, the penalty is $500 per month for each month that the return is late (maximum of $12,000), less any penalties already levied.
If the CRA issues a demand for the return, and if the person fails to file the information return knowingly or under circumstances amounting to gross negligence, the penalty is $1,000 per month for each month that the return is late (maximum of $24,000), less any penalties already levied.
If a person, knowingly or under circumstances amounting to gross negligence, is late with a return by more than 24 months, an additional penalty is imposed, less any penalties already levied, of either: 5% of the cost of the property, the cost of the shares, and the indebtedness of the foreign affiliate; or 5% of the fair market value of the property transferred or loaned to the non-resident trust.
If a person who has to file Form T1134 or Form T1141 can show that, despite exercising due diligence, some or all the required information cannot be obtained, the penalties may be waived. If the person obtains the information later, it must be filed no later than 90 days after the person gets the information.
Is the 5% penalty for failing to file Form T1135 levied per year?
The 5% penalty is levied when the failure to file for a year is done knowingly or under circumstances amounting to gross negligence.
For example, if a person fails to file for the 2018 tax year and the failure continues for more than 24 months, the 5% penalty will be levied on the cost amount of foreign property owned in 2018. The 5% penalty is levied only once and is not per year.
If the same person continues to own the foreign property in 2019 and again fails to file the information return for a period of more than 24 months, the 5% penalty will be levied on the cost of the property that should have been reported for the 2019 tax year. The penalty for 2019 is separate from the one in 2018.
If the person owned no foreign property in 2019 for which Form T1135 was required to be filed, there would be no additional penalty.
How is the cost of foreign property determined for the 5% penalty for failing to file the return for more than 24 months?
For purposes of the 5% penalty, the cost of foreign property is the cost amount of the property, as defined in subsection 248(1) of the Income Tax Act.
Virtual currency is digital asset that can be used to buy and sell goods or services. Cryptocurrency is a blockchain-based, virtual currency. Bitcoins are an example of a cryptocurrency. However, there are thousands of other types. Cryptocurrencies are not controlled by central banks or any country, and they can be traded in a relatively anonymous way.
Many cryptocurrencies can be:
bought with traditional currency (known as fiat currency / legal tender) and sold for fiat currency / legal tender
transferred from one person to another
exchanged for other cryptocurrencies or used to pay for goods or services directly
All of these types of transactions or exchanges may have tax implications.
What tax rules apply when virtual currency is used to buy goods or services?
Income tax purposes
Note
This information is for individuals preparing income tax and benefit returns and corporations preparing income tax returns, who have sold a good or service and were paid in cryptocurrency. There are different rules for calculating GST/HST on a taxable transaction.
When cryptocurrency is used to pay for goods or services, the rules for barter transactions apply for income tax purposes.
A barter transaction occurs when any two persons agree to exchange goods or services and carry out that exchange without using legal tender. For example, paying for movies with virtual currency is a barter transaction. The Canadian-dollar value of the movies bought using cryptocurrency must be included in the seller’s income for tax purposes.
Goods and services tax / harmonized sales tax (GST/HST) purposes
Note
This information is for GST/HST registrants reporting revenue and GST/HST on their GST34 return. There are different rules for calculating income reported on your income tax and benefit return or corporation income tax return.
Cryptocurrency may be accepted as payment for a taxable good or service by a GST/HST registrant. In such a case, the GST/HST rules require that the fair market value of the consideration that was received for the good or service be determined and GST/HST calculated based on that value.
For example, a GST/HST registrant who accepts cryptocurrency for a movie ticket at their theatre would have to determine what the fair market value of the cryptocurrency is at the time of the transaction. The value of the movie ticket bought using cryptocurrency must be included in the registrant’s GST/HST return as revenue with the applicable amount of GST/HST. The amount of revenue and the related GST/HST would be reported in Canadian dollars.
For more information on the tax implications of when a consideration other than money is received for payment, see the Excise Tax Act, section 153(1)(b).
What tax rules apply when virtual currency is used like a commodity?
Virtual currency can also be bought or sold like a commodity. Any resulting gains or losses could be taxable income or capital for the taxpayer. To determine if a transaction is on account of income or capital, see paragraphs 9 to 32 of Interpretation Bulletin IT-479R, Transactions in Securities.
Also, there may be tax consequences if you choose to gift, trade, or use cryptocurrency to buy goods or services or convert cryptocurrency to a government-issued currency.
What tax rules apply when virtual currency is used to pay an employee?
If an employee receives digital currency as payment for salary or wages, the amount (in Canadian dollars) will be included in the employee’s income according to subsection 5(1) of the Income Tax Act.
What tax rules apply when virtual currency is earned from mining or staking?
Mining involves using computers to solve mathematical problems that confirm cryptocurrency transactions. Miners will place cryptocurrency transactions in blocks and try to guess the number that will create a valid block. A valid block is accepted by the corresponding cryptocurrency’s network and becomes part of a public ledger, known as a blockchain. When a miner successfully creates a valid block, they will receive two amounts in one payment. One amount will represent the creation of a new cryptocurrency on the network and the other amount will represent the fees from transactions included in the newly validated block. Those who do the mining are paid in the cryptocurrency that they are validating.
Staking (proof of stake) is a different process to earn cryptocurrency payments but may still result in earnings that have tax implications. Proof of stake is an alternative distributed consensus mechanism where a person is selected out of a group of participants (forgers) to validate a block of transactions. Much like mining, when the selected person successfully creates a valid block, they will receive two amounts in one payment. One amount will represent the creation of a new cryptocurrency on the network and the other amount will represent the fees from transactions included in the newly validated block.
For more information on the tax implications of mining and staking, see our cryptocurrency guide.
Should you be concerned about reporting requirements when using virtual currency?
Not reporting income from domestic or foreign sources is illegal. Canadians should know that the Canada Revenue Agency is very active in pursuing cases of non-compliance, in order to make sure that the tax system is fair for everyone.
An accountant, professional bookkeeper, or an employee of the business can do your bookkeeping.
