December 13, 2021,

Dear Valued Clients & Friends,

As the year draws to a close, it is important to take the time to reflect on our individual growths during the past year.  2021 proved to be another challenging year trying to navigate our way through the pandemic and all the uncertainty that came along with it. For me personally, I am thankful for some sense of normalcy in our everyday lives and look forward to 2022.

Thank you for giving us the opportunity to serve you over the years. As you all know, end of the year means tax season is around the corner!  Attached, you will find an income tax return checklist to help you prepare your documents for the upcoming tax season. Please do not hesitate to contact us, should you require any assistance.  We thank you for your loyalty and look forward to growing our relationship into the New Year!

Kindly note that our office will be closed for the holiday season from Friday, December 24, 2021, at 2:00 pm and will reopen on Tuesday, January 4, 2022.

On behalf of my family and my staff, I wish you and your family happy holidays and a prosperous New Year!

In our final newsletter of this year, here are the topics that will be reviewed:

1. Income Tax Update
2. CRA Updates
3. Important CRA Deadlines
4. Tax Loss Selling
5. Advisory, Tax Planning and Cash Flow Planning

Please connect and follow the links to my social media at your convenience (Facebook, Twitter, LinkedIn, Instagram) to stay fully updated on COVID-19 and tax planning tips for individuals & businesses.

We have been working very hard in providing personal tips & accounting, tax, and business content on social media.   If you get an opportunity, please also provide a google review available at the following link:

AR Jaffer Professional Corporation Chartered Professional Account Google Review 

Sincerely,

Ali Raza Jaffer

1. 2021 Personal Income Taxes

Similar to last year, you have the option of sending your files digitally (either via dropbox, google drive, box, or secured email).  Please do not hesitate to contact us should you require any assistance.  I have attached the income tax checklist as a pdf.

You can also access the checklist at the link:   2021 Personal Tax Checklist

2. CRA Updates 

CRA Provides updates on tax changes, webinars, individual and business deductions, and credits and HST information on a regular basis.  You can access the information with update to date information at the following link:  CRA Updates

3. Important CRA Deadlines

Listed below are the upcoming CRA deadlines:

• January 15, 2022 – Deadline to remit source deductions for the 2021 payroll tax year
• February 28, 2022 – T4 & T5 Filing Deadline
• April 30, 2022- Deadline for filing & payment of taxes owing for 2020 Personal Tax Returns
• April 30,2022 – Deadline for payment of HST payable for Self Employed
• April 30, 2022 – Deadline for payment of taxes owing for Self Employed Individuals
• June 15, 2022 – Deadline for filing Tax Return for Self-Employed Individuals
• June 15, 2022 – Deadline for filing of HST for Self-Employed Individuals

4. Tax Loss Selling 

With the calendar year coming to an end, this is a good time to review your investments and look at opportunities to optimize your tax position.  One of these strategies is called Tax Loss Selling.  The strategy involves triggering a loss on a non-registered investment that’s worth less than its original cost.  If an individual has capital gains that could result in taxes payable, a review of all the investments that are losing money could be offset against these gains to reduce taxes payable.

Example: Any excess losses can be applied against losses from the past three tax years or carried forward to be used in future years.  If you have a $10,000 capital gain from 2015 and realize in December that you have accumulated a loss of $6,000 on another investment, you can sell that second investment to trigger a loss resulting in a net capital gain of $4,000.  Per the tax rules, 50% of that gain is taxable.  One of the conditions of this rule is that the same stock cannot be repurchased for at least 30 days.  The transaction must also be settled before year end. 

5. Advisory, Tax Planning and Cash Flow Planning

Whether you are an individual taxpayer, sole proprietor, or corporate business owner, many of us have experienced a challenging past couple of years.  As part of our commitment and service delivery to our clients, with the recent pandemic, we have been working with our clients on the following:

1)    Business Financing which includes

1. $100k BDC working capital loan application
2. Bank loan proposals & applications
3. Lines of credit applications
4. Applications to various government loan programs in response to the COVID-19 pandemic
5. Preparation of business plans and cash flow projections

2)    Cash Flow Planning & Budgeting

3)    Tax Planning and Corporate Restructuring (Holding companies, Estate Freezes, Trusts)

4)    Net Worth Analysis and Planning

5)    Strategies to achieve your short term and long-term goals

Please see our website for further details at https://www.arjcpa.ca/business-advisory-services/

Have a safe and happy holiday season!

Best regards, 

Ali Raza Jaffer, CPA, CGA, MBA, BComm

President, AR Jaffer Professional Corporation

Chartered Professional Accountant 

We appreciate your referrals!

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