A.T. Financial Newsletter
TAX PLANNING
U.S. residents in Canada take note:
Uncle Sam wants your tax dollars
If you’re a U.S. resident living in Canada or a greencard holder, legislation that went into effect in July of 2014 may have put you on Uncle Sam’s tax radar. The U.S. government has always required U.S. persons to pay U.S. taxes regardless of where in the world they actually reside. But the Foreign Account Tax Compliance Act (FATCA) takes that a very big step further. It compels foreign governments to actively participate in identifying and reporting those persons.
As a result, Canadian financial institutions now have to report accounts that appear to be held by U.S. persons to the CRA. The CRA then must share its findings with the IRS. And the IRS in turn, will undoubtedly use this information to ensure it’s getting its fair share of your tax wallet.

The rules governing who is considered a U.S. person can be complex and can even extend beyond people to estates and trusts. If you are a U.S. citizen, greencard holder, or someone who spends considerable time in the U.S., consider meeting with your tax advisors to get clarity about how this sweeping legislation might affect you.
The MONEY file
TIPS AND TACTICS TO HELP YOU GET AHEAD
CHARITABLE GIVING
Giving to overseas charities?
You might not get a tax receipt
The Canada Revenue Agency (CRA) recently changed the rules governing foreign charities and their ability to issue tax receipts. And the news isn’t good if you support non-Canadian-based organizations.

Foreign charities must now formally apply to the CRA for qualifying status. Only charities that are involved in disaster relief, humanitarian aid, or activities deemed to be in Canada’s
“national interest” qualify.

As of this writing, the CRA has recognized only a handful of internationally based charities. So while you can still donate to the Aga Khan Foundation, your alma mater overseas, or any other non-Canadian charity, you might not be able to claim the donation on your tax return.

For a complete and current list of the eligible charities, visit www.cra-arc.gc.ca and search for “foreign charities.”
TAX STRATEGY
A better way to get your tax refund

Expecting your tax refund to arrive soon? You might think that’s reason to celebrate — but think again. After all, a tax refund is just the government’s way of paying your money back — without interest.

If you are expecting significant tax deductions in 2015 (perhaps from RRSP contributions, support payments, childcare expenses, or a large charitable donation), you can arrange to get your tax breaks throughout the year, rather than having to wait until 2016. All you need to do is fill out a little paperwork:
  • File form T1213, Request to Reduce Tax Deductions at Source, with the Canada Revenue Agency (CRA). Quebec residents also need to file Quebec provincial form TP-1016.
  • If your request is approved, your employer will be authorized to reduce the amount of tax withheld at source, leaving you with more money every paycheque.
  • To really make the most of this strategy, consider setting up an automatic investment program for that money.
Whether you’re looking for advice on how best to use your tax refund or how to avoid getting one next year, we’re here to help you.
For more information,
please contact us at

(647) 833-2782