March 2, 2022

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With the tax season underway, we would like to take this opportunity to share with you some changes to expect this season, along with important deadlines and updates to ensure a smooth and efficient tax season.  

1. INTRODUCING THE CLIENT PORTAL

We are constantly looking for ways to streamline our client experience and provide the best security possible to keep your data safe. This tax season we are launching a CCH iFirm Portal which will be used for uploading all your documentation. Your tax return and signature pages will also be delivered through this portal. You can expect a registration email by March 4. 

2. CHANGES TO OUR FEE STRUCTURE

In light of ongoing regulatory changes and rising inflationary and salary costs, all of which have directly impacted our charge-out rates, we will be increasing our fees to continue to provide the best possible service. Please consult with your Smythe advisor directly for more information about what fee increases to expect. 

3. SMYTHE HAS GONE GREEN

Like many businesses, we are continually modernizing our hybrid workplace with digital infrastructure to create efficiencies for our staff and clients. As such, we are working to transition away fully from paper-prepared returns. We encourage all documentation to be submitted through our new client portal.  

4. REMINDER: Auto-fill my return in effect

Please be advised we continue to rely on the Auto-fill my return secure service provided by the CRA to download various information on your file.  

5. UPCOMING DEADLINES:

February 28, 2022

T4 and T5 slips should be filed with CRA and issued to recipients.

March 1, 2022

Final contributions to your (or your spouses) RRSPs must be done to be claimed on your 2021 tax return.

March 15, 2022

If required, your first personal income tax installment for 2022 is due.

***April 12, 2022***

Our firm is required to file tax returns electronically with CRA. In order to meet the prescribed deadlines for all our clients, all required documentation must be submitted to us by April 12. We request you send the information as soon as possible to assist us with our workflow. Please use the client portal to submit your documentation. As a reminder, be prepared for tax slips that may not arrive until April 1, in accordance with the filing deadlines with CRA.   

May 2, 2022

Unless you are a sole proprietor, your personal income tax return filing is due.

Note: all taxpayers (including sole proprietors) must pay their 2021 personal income taxes by this date to avoid interest charges. New draft legislation imposes a requirement for payments over $10,000 to be paid through electronic means; otherwise, a $100 penalty may apply.

2021 PERSONAL INCOME TAX RETURN CHECKLIST

Please refer to our fillable personal income tax return checklist to assist you in gathering the required information for your personal income tax return. We strongly encourage you to provide your information to us only when you have gathered most–if not all–of it, where possible. 

Remember, if you received any late or amended tax slips, it’s important you provide us with a copy as soon as possible to avoid exposure to significant penalties.

Download the Personal Income Tax Checklist

EXTENDED! HOME OFFICE EXPENSES FOR EMPLOYEES WORKING AT HOME DUE TO COVID-19

Use the CRA online calculator to determine if and how much you can claim. There are two methods. We recommend trying both and letting us know what your total claim amount is. 

1. The temporary flat rate method is easy to calculate ($2/day up to a maximum of $500) and requires no supporting documentation. If you own your home, this method may result in a better claim than the detailed method.

2. The detailed method requires supporting documentation as well as Form T2200S from the employer. If you rent your home, this method may result in a better claim than the flat rate method.

Learn more about Home Office Expenses

DID YOU OWN FOREIGN PROPERTY IN 2021?

It’s a requirement to report foreign property, including cryptocurrency, held at any time in the year with a total cost of more than CAN$100,000. If you held foreign property during the year with a total cost of more than CAN$100,000, review and complete the Foreign Reporting Form so we can prepare the T1135 Foreign Income Verification Statement Form. Your investment advisor should provide a foreign property report related to your investments that should be provided to us.

Download the 2021 Foreign Reporting Form

DID YOU SELL YOUR PRINCIPAL RESIDENCE IN 2021?

It’s a requirement to report the sale of your principal residence on your personal income tax return. If you sold or changed the use of (rental to personal use or vice versa) residential real estate (including your home) during the year, it is important that you notify us and complete Schedule 6 on the Personal Income Tax Checklist.

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