tax (36)

Trusts & Tax Reporting moving forward


there is new  trust rules that are now law

lots of requirements and it may affect many people unawares 

this article is a good starter to help determine responsibility for reporting


we do trust returns , CRA has geared up the online reporting options 


Lots to think about 

As always please review comments below for more info gleaned for this topic

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Worldly Vacation Taxable Benefit Tax

Subject: A tax that Canadians might all support , except 1 or 2


"Great resource .... New or Existing, this is a good little overview, taxes to feed the golden goose , yes the Goose eats to much, we all eat a little too much. If you are lucky, you might have friends that can take care of you on your vacation, this happens for the odd turkey in this country .... I wonder how much scratching would happen if larger gifts from friends was deemed a taxable benefit for say politically exposed persons , that might be a good idea. CRA could do a poll to see if that would be an acceptable tax to be implemented"


So ....


 Do a poll , have fun, Federal be a good place to start.  


A worldly vacation taxable gift benefit, issue a T4A , code WTF , and kicks in when the gift exceeds .... pick your number 


9000 a day 

1000 a day

500 a day

10 a day


Only Politically Exposed Persons and their Family being subject to the taxable benefit. 


Penalties for not issuing the T4A WTF , start at 5,000 for individuals and 50,000 for corporations. 


For those issuing a T4A WTF they receive a refundable tax credit equal to $500 . The gift giver should be rewarded for their influence petaling and to help with the filing cost. 



This is definitely an under utilized source of revenue for government to consider. A tax designed to encourage social responsibility amongst politically exposed persons and help generous patrons be recognized for their contributions.  I think Canadians would rally around this initiative and a whole new government bureaucracy could be created, more good paying jobs, I would put that department on a base salary plus commission! 


All the best with this opportunity. 




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Working From Home - Tax

" Employers will be extra busy this tax-filing season providing eligible employees with completed tax forms they’ll need to deduct home office expenses on their 2023 returns.  

The temporary “flat rate” method, which allowed Canadians working from home due to Covid to claim up to $400 in employment expenses in 2020 and up to $500 in 2021 and 2022, is not available for 2023. That method did not require the employee to get a form from their employer. 

Employees who worked from home in 2023 and who are eligible to claim home office expenses will have only one option — the “detailed” method, which will require a completed Form T2200: Declaration of Conditions of Employment from their employer. 



Form T2200: Declaration of Conditions of Employment

Year 2023 form to be available near end of January 2024

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Not to be confused with a $50,000 tax refund 


Multigenerational Home Renovation Tax Credit

This Multigenerational Home Renovation Tax Credit came up in my feeds this afternoon.

Case A. 

Let's say we have a retired couple who just turned 65 and older, and they moved into their daughters and son-in laws house which they plan to renovate or receently renovated to accoumadate the newly minted "Granny Suite"  


Case B.  You have a son or daughter of another family member who has a disbaility and they are under 65,  they  may be eligible for Disability Tax Credit ( DTC) , if eligible, Dad  would be able to claim this credit should he do a reno to accomadte the son in their home. He also may be eligible to claim him even if the renovation is not undertaken yet and may in fact be eligible for prior yrs. We often recover taxes going back 10 yrs in such cases. Your grandson may also be eligible for a RDSP investment plan, there is excellent grants and bonds possible with this.

First step would be for dad or mom to get in touch with our office and speak with our Disability Tax Specialist to make a determination regarding DTC eligibility. For this service we currently charge a 25% recovery fee on what we get them back, if nothing, there is no charge. Hopefully we get you back 10 to 20 M. Our experts can go over those details when they talk.


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Tax 2024 + Prior

Tax Tax Tax 

X X X 

Tax reflections and planning and implementation are always evolving and some of the basics stay pretty well the same.

It has been suggested by my friend Mark that I start a Tik Tok channel on T A X. , he sugested  lots of XXX in the titles apparently that gets more viewers attentions. Will see, we don't want our eyes poked out. 

In the meantime, let's start with this list


Hot Hot Hot off the internet advisors site. 

Will add some more content and commentary  going forward. 

Tim's Tax Tips 


PS, maybe we should add some Traps  , lots of T's

T T T & T



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Petition to Call out the UHT

Open letter to Members of Parliament re: Underused Housing Tax Act

Bad legislation deserves to be pushed back against.

How to share your voice with your MP:

1. Click the following link to access the open letter:

2. Copy the letter and paste it in a new email.

3. Ensure you change the date, your MPs name and your name.

4. Send the letter to your local MP, the Minister of Finance and the Prime Minister.
** A link to all MP email addresses is included in the Legacy Tax webpage above.

#uht #tax #housing #legislation #taxpayer #billofrights #penalties #canada


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** The only safe way to boast is by constructive actions.




It has been said that it’s not boasting if you can really do it. This may be true, but a far more persuasive argument is made when you do it first and talk about it later. Besides, good things that are said about you always carry more weight when they are said by someone other than yourself. When you find yourself tempted to wax eloquent about your achievements, force yourself to pause for a moment, take a deep breath, and ask someone else about their achievements.


Permanent link to this post: The only safe way to boast is by constructive actions. (


... I got blocked today from sharing an article on facebook as it was considered news and news is banned in Canada due to some crazy social bills the gov has implemented, so a work around today , at the moment, ppost on linked in, then share that link on fb , it worked

Trudeau Announces Carbon Tax Pause on Heating Oil, Heat Pump Subsidies for Lower Income Households | The Epoch Times

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Timothy Ross,  Family Advisor ©, CEO & Founder, Brock Shores Financial, Family Office Providing Omega Stewardship ©  

Mutual Funds offered through PEAK Investment Services Inc.

Life & Travel, Insurance, Seg Funds  & Banking offered through Financial Horizons Group

Tax Services offered through Timothy Ross & Associates &  Brock Shores Income Tax Corp

Planning Services offered through Brock Shores Planning Corp.  


Brock Shores Financial / Timothy Ross & Associates, Family Office Providing Omega Stewardship
​4502 Airport Road – Tincap, GTA Professional Center, Elizabethtown, Ontario K6T 1A2
​613-345-0016 Office 613-213-4625 Cell/Text 613-345-5231 Fax

​Executive Assistant: Heather Kiley

Office Assistant: Tammy Abrams

​Office Manager: Megan Ross

Income Tax Associate: Kelly Potvin

Bookkeeping Associate:  Becky Eamon

Brock Shores Planning Corp:

Planning Associate, Johanne Brennan  


Tim's Linked-In:


​* One Stop Process Driven Approach for Retirement & Income Planning
​* Personalized Tax Management Solutions for Individuals & Business Owners
​* Confidential Wealth Management Solutions 

Legacy Site: 

View our Blog: #ImprovingFutures

Helping Families Achieve ... Life's Major Goals
​1. Tax Smart Planning & Investing
​2. Worry Free Retirement
​3. Education of Our Children & Grandchildren
​4. Quality Care for Our Parents
​5. Meaningful Financial Help for Our Loved Ones
​6. Meaningful Legacy


Mission - Vision – Core Values

“Serving our clients and community since 1988”

​Member of Advocis, The Financial Advisors Association of Canada
​Member of IFB, Independent Financial Brokers of Canada
​Member of RIA, Responsible Investment Association

Member of  Efile Association of Canada

Member of Kingdom Advisors; Paul Harris Fellow



View our Blog: #ImprovingFutures


PEAK Disclosure - Click here for Lots of Good Stuff


Corporate Links 

Brock Shores Financial

Timothy Ross & Associates:

Peak Investment Services :

Brock Shores Planning Corp :


Founder Links

#Kitchen Moments

#Herbal Moments

#Fungi Fun


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"People influence People”  We value your business, please leave a review on our Bark profile  Leave your Review Here & Check Others

 Access Your Peak Accounts  Inspiration:


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"The beauty of being in business is that your business engages all aspects of your mind, I think that is why you become successful, business challenges you to be more than you are, and that is where the miracle takes place." Timothy  Ross, May 2004

I like Winston Churchill, he had the incredible  ability to move the English language into action. My mentor Jim Rohn, say's , "Don't be afraid to borrow if someone else has said it well. Winston Churchill said, "The truth is incontrovertible. Malice may attack it and ignorance may deride it, but in the end, there it is." That's so well said. You could  stay up all night and not think of that. " ~ Timothy Ross

Have a Blessed Day! TLR

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Tax Detention Powers added

"It is therefore unclear why the CRA would now also need police-like powers to interrogate any person and, furthermore, to require that person to attend any place designated by it, as part of its ordinary audit function."

To delineate the limits to its new power, the Canada Revenue Agency should adopt these best practices for audit interviews, argue three tax lawyers from Davies

To delineate the limits to its new power, the Canada Revenue Agency should adopt these best practices for audit interviews, argue three tax lawyers from Davies

Author: Brian Bloom, Élisabeth Robichaud and Sammy Cheaib
Brian Bloom, Élisabeth Robichaud, and Sammy Cheaib
Brian Bloom is a partner, Élisabeth Robichaud is a partner, and Sammy Cheaib is an associate in the Montreal office of Davies Ward Phillips & Vineberg LLP (“Davies”).

THE Canada Revenue Agency (CRA) can now require taxpayers or any other person to answer "all proper questions" and provide all reasonable assistance for any purpose relating to the administration or enforcement of the Income Tax Act (ITA), including by submitting to oral questioning at a place designated by the CRA.[1]

In this bulletin, we comment on the scope of the CRA's new power to compel oral interviews, which became effective on December 15, 2022. 


Although it is not standard audit practice for the CRA to demand that taxpayers and their agents submit to oral interviews in the course of tax audits, the CRA will sometimes do so, especially during transfer pricing audits and, more recently, during audits initiated under the related-party initiative (RPI). Such a CRA demand was recently considered in Minister of National Revenue v Cameco Corporation[2] (Cameco), in which the Federal Court of Appeal (FCA) held that, although oral interviews are not prohibited, the ITA does not authorize the CRA to compel taxpayers to submit to interviews.[3] Hence, following the Cameco decision, the CRA continued to conduct oral interviews with the important nuance that the taxpayer's prior consent to such an interview was now clearly required. 

Statutory Authority to Conduct Oral Interviews

In response to the Cameco decision, the 2021 federal budget proposed amendments to section 231.1 of the ITA to broaden the CRA's audit powers. These amendments were substantively enacted in Bill C-32 and came into force upon royal assent on December 15, 2022. 

Generally, prior to these amendments, section 231.1 of the ITA authorized the CRA to inspect a taxpayer's books, records and property inventories. The CRA could enter a taxpayer's premises or places of business and require any person on such premises to provide reasonable assistance in the CRA's inspection of books, records and property inventories. 

Bill C-32 amends section 231.1 of the ITA. One of the most substantive changes is contained in amended paragraph 231.1(1)(d) of the ITA, which now requires a taxpayer or any other person to provide the CRA with "all reasonable assistance" and to answer "all proper questions" relating to the administration or enforcement of the ITA. Moreover, under amended subparagraph 231.1(1)(d)(i), the CRA can now require any person to attend "any place designated by the CRA," or attend by videoconference or by another form of electronic communication, in order to submit to oral questioning. 

Note too that the CRA can now compel any person to answer questions in writing in any form specified by the CRA. Generally, all persons are now required to provide the CRA with "all reasonable assistance with anything the [CRA] is authorized to do" under the ITA.[4] Although our focus here is on the CRA's power to conduct oral interviews, comments similar to those made below apply equally to these other new rules, whose scope has yet to be established by the courts. 

Departure from Prior Audit Practice

The CRA's new power to compel taxpayers to undergo oral interviews and attend any designated place for this purpose (akin to law enforcement officers' power to bring an arrested individual to a police station to undergo questioning) departs from previous standard audit practice in a manner that is — in our view — unwarranted, as a matter of both policy and practice. 

It is well established that a tax audit should be a collaborative process in which, as a corollary to the taxpayer's duty to provide all reasonable assistance, the CRA should treat the taxpayer courteously and with consideration, having due regard to its "core values" of integrity, professionalism, respect and collaboration.[5] Accordingly, in most income tax audits, long-established standard practice has been for the CRA to request, in writing, any information relevant to an audit under either section 231.1 or 231.2 of the ITA, and for taxpayers to cooperate by providing such information in writing within a reasonable time. This practice helped to ensure that taxpayers were able to provide complete and accurate information along with any relevant supporting documentation, as well as to seek and obtain all needed assistance to do so. Where a taxpayer refused to comply with a valid demand made by the CRA pursuant to section 231.1 or 231.2 of the ITA, the Federal Court could, on a summary application from the CRA, issue a compliance order under section 231.7 of the ITA to compel an answer; in addition, the taxpayer would face the risk of committing a penal offence and being held liable on summary conviction under section 238 of the ITA. 

Furthermore, prior to the enactment of amendments to section 231.1, if the CRA faced a recalcitrant taxpayer when opting to conduct an oral interview, it would not be rendered "toothless," as noted by the FCA in Cameco. Indeed, when a taxpayer refused to answer a question, the CRA could (and still can) make inferences and assumptions, and assess the taxpayer on the basis of those assumptions. Such assessments are deemed to be valid and binding unless and until reversed on appeal, in which case the onus rests on the taxpayer to demolish the factual assumptions. 

Therefore, one could certainly argue that these existing very broad audit and assessment powers already give the CRA the de facto ability to compel oral interviews when necessary, considering the potential adverse consequences for taxpayers who fail to comply with such (occasional) requests. 

It is therefore unclear why the CRA would now also need police-like powers to interrogate any person and, furthermore, to require that person to attend any place designated by it, as part of its ordinary audit function. Indeed, there appears to be no reason, in policy or practice, to favour answers given orally over answers given in writing. The CRA's audit function audit. An audit is neither a court hearing nor a criminal investigation. Auditors are not trained to hear oral evidence or opine on the credibility of a witness. And they should certainly not be employing oral interviews to trick taxpayers into giving inculpatory answers or unwittingly waiving legal privilege. Accordingly, we hope that the CRA will maintain its standard audit practice of requesting information in writing, despite its new powers. Oral interviews should be reserved for certain specialized audits, such as transfer pricing audits. Indeed, Cameco was a transfer pricing case. 

Limits to the Power to Conduct Oral Interviews

Despite the broad statutory language in new section 231.1 of the ITA relating to the CRA's power to conduct oral interviews, this power may be more limited than it initially appears. In our view, these limits are both contained in the text of the provision itself and flow from taxpayers' established civil and constitutional rights. 

Limits in the text of section 231.1

The text of new paragraph 231.1(1)(d) of the ITA reveals that the CRA's power to conduct oral interviews is limited by both the "reasonable assistance" and "proper question" standards. While the courts have previously examined these terms under former versions of section 231.1 of the ITA, their scope under this new version remains to be determined. 

For example, courts may see the following as unreasonable within the meaning of new paragraph 231.1(1)(d): interview requests that are disproportionately onerous in light of the issues or amounts at stake; that are disruptive to the taxpayer's business; or that are highly unlikely to yield information relevant to a CRA audit. Moreover, courts may see the following as not being proper within the meaning of new paragraph 231.1(1)(d): repetitive, leading, speculative or argumentative questions; questions that are clearly irrelevant or that are asked in an intimidating manner; and questions that could reveal privileged information. 

Protection of Charter Rights

The CRA's power to compel oral interviews, in particular when conducted at any place designated by it, should be understood in the context of — and attenuated by — individuals' established constitutional rights under the Canadian Charter of Rights and Freedoms (Charter). 

Requiring an individual to attend an interview, especially one that is scheduled to occur at a particular place and time designated by the CRA, arguably constitutes a form of detention. Indeed, the courts have established that detention may include situations in which individuals are not only physically detained but experience a "psychological compulsion," in the form of a reasonable perception that they are not free to go and must comply with the direction or demand to avoid being held liable. On this point, we note that section 238 of the ITA provides that any person who contravenes section 231.1 is guilty of an offence and is liable on summary conviction, in addition to any penalty otherwise provided, to a fine of between $1,000 and $25,000 and to imprisonment for a term not exceeding 12 months. 

If submitting to oral interviews constitutes a form of detention, this could trigger a series of robust Charter protections, including the guarantee in section 7 not to be deprived of liberty except in accordance with the principles of fundamental justice; the right against arbitrary detention in section 9 of the Charter; the right to retain and instruct counsel without delay and to be informed of that right; and to have the validity of the detention determined by way of habeas corpus under section 10 of the Charter

Solicitor-Client Privilege

Furthermore, requiring taxpayers to undergo an oral interview without having the opportunity to consult with their legal representatives would pose a serious threat to the protection of solicitor-client privilege (SCP), a constitutional and fundamental civil and legal right. Taxpayers often rely on legal advice in tax matters, given the complexity of the ITA and the breadth of audit requests, and cannot be expected to know which information is protected by SCP. 

If the CRA's power to conduct oral interviews is exercised without due consideration to taxpayers' right to consult their legal representatives, such power risks giving rise to unintended communication of information protected by SCP or, for that matter, other types of privileged information. This raises the further issue of what remedy is appropriate when privileged information is so obtained by the CRA in violation of taxpayers' constitutional rights. 

We would note, however, that there is nothing in the amended provisions that explicitly prevents taxpayers from attending a mandatory interview with their advisers, including legal advisers, or that authorizes the CRA to exclude such advisers from an interrogation. 

Moving Forward: With Great Power Comes Great Responsibility

Until the courts delineate the limits to this heavy-handed new power, clear administrative guidelines by the CRA would be welcome on (i) the circumstances in which oral interviews may be appropriate and (ii) the manner in which they may be conducted. 

In this regard, and until such CRA guidelines are available, we suggest that CRA auditors and taxpayers adopt best practices designed to ensure that the CRA's power to conduct oral interviews is exercised reasonably and in a proper manner. These practices could include the following:

  • favouring written questions over oral interviews as a general information-gathering tool unless the nature of the audit clearly calls for oral interviews, as in the case of auditors seeking to conduct or verify a functional analysis in the course of transfer pricing audits;
  • scheduling oral interviews well in advance, at a place and time mutually agreed upon by the CRA and the individual being interviewed;
  • ensuring that the questions are provided to individuals with sufficient prior notice to allow them to prepare complete answers by consulting the relevant documents and seeking assistance from their tax advisers and legal counsel;
  • ensuring that the interviewed individuals are provided with all opportunities to be accompanied throughout the interview by any persons they choose, including their tax advisers and legal counsel;
  • ensuring that the interviewed individuals are made aware of their right to take notes and record the interview; and
  • ensuring that individuals are not compelled to answer questions that they are incapable of answering and, consistent with undertakings given on discovery in civil proceedings, ensuring that individuals are given the opportunity to provide complete answers, whether orally or in writing, after the interview once they have properly informed themselves. 

We believe that these common sense measures would not only ensure the reasonable exercise of the CRA's power to conduct oral interviews but also improve the efficiency of the CRA interview process by providing adequate opportunities to taxpayers to share proper, accurate and complete information. It is in the interests of both the CRA and taxpayers to ensure that the audit is conducted efficiently, fairly and within the confines of the law and that the information provided by taxpayers to the CRA is correct. 

Regardless of whether the CRA adopts our suggestions, given the uncertainty triggered by these substantive changes to the CRA's audit powers, taxpayers who fear that the CRA's power to conduct oral interviews is being exercised unreasonably or improperly should seek legal counsel. 


1.  The CRA exercises the power conferred upon the Minister of National Revenue by the ITA.
2.  2019 FCA 67.
3.  Read our contemporaneous discussions on the Camecodecision and its immediate impact on the conduct of audits at The CRA Cannot Compel Oral Interviews During an Auditand CRA's Audit Powers Have Limits.
4.  New subparagraph 231.1(1)(d)(ii) and new paragraph 231.1(1)(e) of the ITA.
5.  See CRA's Taxpayer Bill of Rights Guide: Understanding your rights as a taxpayer

Brian Bloom is a partner, Élisabeth Robichaud is a partner, and Sammy Cheaib is an associate in the Montreal office of Davies Ward Phillips & Vineberg LLP (“Davies”). Title image courtesy Canada Revenue Agency. Author photos courtesy Davies.

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Work Vehicle Tax Tips


> -----Original Message-----
> Sent: Monday, January 16, 2023 6:23 AM
> To: Timothy Ross <>
> Subject: Business Vehicle?
> Hi Tim,
> We are currently in the process of buying a new vehicle. It will be
> used for our business as well as personal use. Business wise, to pick
> up smaller materials or tools, driving to estimates where ladders are
> not required, etc.
> My question is this: what parameters would need to be met for us to be
> able to make the vehicle payments and fuel a business expense & make
> sure everything is being written up by the book?

> On Jan 16, 2023, at 6:50 AM, wrote:
> Good morning and Happy New Year !
> For vehicles with mixed use, you need to keep a log book to track
> personal vs business. You keep track of all expenses, then we do a
> calculation at year end to determine how much is deductible.
> The truck can be owned personally or by the business. Check with your
> insurance company for coverage, also financing can be an issue,
> company credit is sometimes harder to get than personal, especially in
> a companies early start-up stages.
> If the truck is owned personally, you also have the option of charging
> the business by the km for the usage.
> It's 59 cents per km in 2023
> -agency-cra/travel-directive/appendix-a-cra-kilometric-rates-jan-2023.html
> With that option you don't have to track expenses as diligently,
> however it is a good policy to know what your spending. Depending on
> usage, the best option can be selected later, the important thing is
> to track and log the usage.
> That should cover the basics on this.
> There is always a number of special twists and turns on this item.
> Please check out the official CRA link below.
> businesses-self-employed-income/business-income-tax-reporting/business-expenses/motor-vehicle-expenses.html
> One other note, vehicle value is a consideration, the more expenses
> vehicles are sometimes restricted in how much can be deducted for
> depreciation purposes. The limit for 2022 was 30,000 plus tax.. Also
> there is a special accelerated depreciation rate effective June 2022 which is beneficial .
> This sounds like a car or suv, I would not put them in the company
> personally, less critical review by CRA, if it's a truck, then inside
> a corporation makes sense, and would help get around the valuation
> rule easier.
> I hope that helps. Once you get the purchase done, please send us the
> purchase and loan info for our tax files.
> One finally thought, there is a few online vehicle tracking software
> that you could invest in to help keep track of trips. The one I use is
> Mile IQ
> Tim


Wow, thank you so much. This was really helpful.

It is an SUV so I think based on the info and your insight, it might be best for us to finance personally. I will continue to look into it and get all the appropriate forms to you once we have them.

Thank you again - this was so helpful! Happy new year to you as well!

All the best !



NOTE: please always check the comment section for additional resources that we may post down their later on this topic. ~ TLR


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Timothy Ross, Family Advisor, CEO & Founder, Brock Shores Financial

Mutual Funds offered through PEAK Investment Services Inc.

Life & Travel,Insurance, Seg Funds & Banking offered through Financial Horizons Group

​This transmission is intended solely for the individual or entity to whom it is addressed and is confidential in nature. Please be advised that any distribution, reproduction or other use of this document by anyone other than the addressee is strictly prohibited. If you have received this communication in error, please notify us immediately. Thank you for your assistance.  Please feel free to share our contact info below with those who may benefit from our services. All rights reserved, Timothy Ross

Brock Shores Financial / Timothy Ross & Associates, Family Office Providing Omega Stewardship
​4502 Airport Road – Tincap, GTA Professional Center, Elizabethtown, Ontario K6T 1A2
​613-345-0016 Office 613-213-4625 Cell/Text 613-345-5231 Fax
​Executive Assistant: Heather Kiley

Office Assistant: Tammy Abrams
​Office Manager: Megan Ross

Income Tax Associate: Kelly Potvin

Bookkeeping Associate:  Becky Eamon

Planning Associate Brock Shores Planning Corp:

Johanne Brennan  613-329-2310


Mission - Vision – Core Values

“Serving our clients and community since 1988”

​* One Stop Process Driven Approach for Retirement & Income Planning
​* Personalized Tax Management Solutions for Individuals & Business Owners
​* Confidential Wealth Management Solutions 

View our Blog: #ImprovingFutures

Helping Families Achieve ... Life's Major Goals
​1. Tax Smart Planning & Investing
​2. Worry Free Retirement
​3. Education of Our Children & Grandchildren
​4. Quality Care for Our Parents
​5. Meaningful Financial Help for Our Loved Ones
​6. Meaningful Legacy

​Member of Advocis, The Financial Advisors Association of Canada
​Member of IFB, Independent Financial Brokers of Canada
​Member of RIA, Responsible Investment Association
​Paul Harris Fellow


PEAK Disclosure - Click here for Lots of Good Stuff

We value your business, please leave a review on our Bark profile

Leave your Review Here & Check Others
​ ​Have a Blessed Day! "People influence People”

Access Your Peak Accounts




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Tax 2023


Update important changes Dec 15,2022


News release
December 15, 2022 - Ottawa, Ontario - Department of Finance Canada

Today, Bill C-32, the Fall Economic Statement Implementation Act, 2022, received Royal Assent. With the passage of this legislation, the government is delivering on key measures from the 2022 Fall Economic Statement to help families cope with increasing costs, make housing more affordable, and strengthen and build a thriving net-zero economy with opportunities and good jobs for Canadians.

Key measures adopted in Bill C-32 to make life more affordable include:

Permanently eliminating interest on Canada Student Loans and Canada Apprentice Loans to reduce the burden of student loans on young Canadians.

Cutting taxes for Canada’s growing small businesses from 15 per cent to 9 per cent by more gradually phasing out their access to the small business tax rate.

Requiring Canada’s largest financial institutions to pay their fair share by implementing the Canada Recovery Dividend, a one-time, 15 per cent tax on taxable income above $1 billion of banking and life insurer groups.

Bill C-32 also delivers key components of the government’s plan to make housing more affordable by:

Helping young Canadians afford a down payment faster with the new Tax-Free First Home Savings Account, which will allow prospective first-time home buyers to save up to $40,000 tax-free toward their first home starting in mid-2023

Helping Canadians save on closing costs by doubling the First-Time Home Buyers’ Tax Credit to provide up to $1,500 in direct support to home buyers, starting in 2022, to offset increasing closing costs involved in buying a first home.

Helping families afford to have a grandparent or a family member with a disability move back in if they want to with a new, refundable Multigenerational Home Renovation Tax Credit of up to $7,500, starting January 1, 2023.

Cracking down on house flipping by ensuring that profits from flipping properties held for less than 12 months are fully taxed, starting in 2023, with certain exceptions for unexpected life events (e.g. death, divorce).

And, Bill C-32 invests in jobs, growth, and an economy that works for everyone by:

Supporting the launch of the new Canada Growth Fund, which will help bring to Canada the billions of dollars in new private investment required to reduce our emissions, grow our economy, and create good jobs at the same time.

Securing Canada’s competitiveness by introducing a new 30 per cent Critical Mineral Exploration Tax Credit for specified mineral exploration expenses incurred in Canada.

Eliminating flow-through shares for fossil fuel sector activities by no longer allowing oil, gas, and coal exploration and development expenditures to be renounced to a flow-through share investor.

Let's not forget bare trust reporting, and the huge penalty burden that will be to all that have a intrust account. 

Read more…

Free Dental


Starting on December 1, eligible Canadians were allowed to apply for the Canada Dental Benefit.

Press Release : Applications for the new Canada Dental Benefit are now open! -

Dental expenditures  can be claimed back to October 1, 2022.

The Canada Dental Benefit will give eligible families up-front, direct payments of up to $650 a year per eligible child under 12 for two years (up to $1,300) to support the costs of dental care services.

This will be processed by CRA according to claim periods:

Period 1 is for dental care received between October 1 to June 30, 2023
Period 2 is for dental care received between July 1, 2023 and June 30, 2024
It is possible to qualify for an additional payment starting July 1, 2023 if costs are over $650 in one of the benefit periods. It is possible to receive the additional payment if you are not apply for both benefit periods. In this case the same benefit is the same as the period applied for.

Applications will be submitted through the CRA’s website, where the applicant’s identity will be verified, along with confirmation that their 2021 tax return has been filed.

In order to access the benefit, applicants must meet all of the following criteria:

Have a child or children under 12 as of December 1, 2022 and are currently receiving the Canada Child Benefit (CCB) for that child;
Gave an adjusted family net income of less than $90,000;
Their child does not have access to private dental insurance;
Filed their 2021 tax return; and
Have had or will have out of pocket expenses for their child’s dental care services incurred between October 1, 2022 and June 30, 2023, for which the costs are not fully covered or reimbursed by another dental program provided by any level of government.

For more on how to apply visit here.  How to apply - Canada Dental Benefit -

How Much is the Canada Dental Benefit Payment?

More information: Depending on the family’s net income, a tax-free payment of $260, $390, or $650 is available for each eligible child. This interim dental benefit is only available for 2 periods. You can get a maximum of 2 payments for each eligible child.

Potential Audit Traps

Note that the child is considered to have dental coverage, and therefore will not qualify for the Canada Dental Benefit in the following cases; pay particular attention to point #3:

Some or all of the child's dental costs are covered by a private dental insurance plan of any kind
Either parents’ or caregiver’s employer provides a dental insurance plan for the child
The parents or someone else declined an employer provided dental insurance plan that would have covered the dental care for the child

Also it’s important to book an appointment for dental care within the Period 1 or 2 before applying and be parents/caregivers must be prepared to provide details about the dental provider, appointment dates and costs. The Canada Dental Benefit will need to be repaid if the dental care is not received within the period.

What services can be booked? Payments to the following professionals for services will qualify:

a dentist
a denturist
a dental hygienist


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Repayments can affect your taxes

The timing of when you repay a CERB amount may affect your taxes. Your repayment should appear on your T4A slip for the year you made the repayment.


If you repay a CERB amount before January 1, 2023, you can choose when and how to claim the deduction on your tax return.


You have the option to claim your repayments as a deduction in the year you made the repayment or in the year you received the benefit. You may also split the deduction between the tax years, as long as you do not deduct more than what you repaid.


When to report your repayments on your taxes

If repaid in 2020

Your repayment should have been subtracted from your total benefit amount on your 2020 T4A slip. You did not pay tax on amounts you repaid in 2020.


If repaid in 2021

Your repayment will be on your 2021 T4A slip. If you repaid a benefit amount you received in 2020, you can choose to:

* claim the deduction on your 2020 tax return

* claim the deduction on your 2021 tax return

* split the deduction between your tax returns


If repaid in 2022

Your repayment will be on your 2022 T4A slip. You should receive your T4A slip in early 2023.

You can choose to:

* claim the deduction on your tax return for the year you received the benefit (2020 or 2021)

* claim the deduction on your 2022 tax return

* split the deduction between your tax returns


Keep proof of your repayment if you claim the deduction before you receive your 2022 T4A slip.


If repaid in 2023 or later

If you repay a benefit amount after December 31, 2022, you can only claim a deduction in the year you make the repayment.

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Tax Tails Dec 16 2021

It says 1 min read, it’s more like an afternoon. Very interesting, some good perspective. If you are interested in amassing wealth and paying less taxes , you might find some ideas that will work and some that will not . Enjoy

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Tax Tips 2022

Time flys by so quickly, hard to belive 2022 will soon be with us. Here is some quick tips to help us going forward. ~ Tim


This article was updated on Dec. 8, 2021, to include 2022 numbers.

You have a lot to remember as an advisor, so we’ve assembled this reference list of tax numbers. We’ll update it as things change.

Working clients

Maximum RRSP contribution: The maximum contribution for 2022 is $29,210; for 2021, it’s $27,830. The 2023 limit is $30,780.

TFSA limit: In 2022, the annual limit is $6,000, for a total of $81,500 for someone who has never contributed and has been eligible for the TFSA since its introduction in 2009. The annual limit for 2021 is also $6,000, for a total of $75,500 in room available in 2021 for someone who has been eligible since 2009.

Maximum pensionable earnings: For 2022, the maximum pensionable earnings amount is $64,900 (up from $61,600 in 2021), and the basic exemption amount remains $3,500 for 2021 and 2022.

Maximum EI insurable earnings: The maximum annual insurable earnings (federal) for 2022 is $60,300, up from $56,300 in 2021.

Lifetime capital gains exemption: The lifetime capital gains exemption is $913,630 in 2022, up from $892,218 in 2021.

Low-interest loans: The current family loan rate is 1%.

Home buyers’ amount: Did your client buy a home? He or she may be able to claim up to $5,000 of the purchase cost, and get a non-refundable tax credit of up to $750.

Medical expenses threshold: For the 2022 tax year, the maximum is 3% of net income or $2,479, whichever is less. For 2021, the max is 3% or $2,421.

Basic personal amount: The basic personal amount for 2022 is $14,398 for taxpayers with net income of $155,625 or less. At income levels above $155,625, the basic personal amount is gradually clawed back until it reaches $12,719 for net income of $221,708. The basic personal amount for 2021 ranges from $12,421 to $13,808.

Older clients

Age amount: Clients can claim this amount if they were 65 years of age or older on Dec. 31 of the taxation year. The maximum amount they can claim in 2022 is $7,898, up from $7,713 in 2021.

OAS recovery threshold: If your client’s net world income exceeds $81,761 in 2022 or $79,845 in 2021, he or she may have to repay part of or the entire OAS pension.

Clients with children, dependants

Canada caregiver credit: If you have a dependant under the age of 18 who’s physically or mentally impaired, you may be able to claim up to an additional $2,350 in 2022 and $2,295 for 2021 in calculating certain non-refundable tax credits. For infirm dependants 18 or older, the amount for 2022 is $7,525 and the 2021 amount is $7,348.

Disability amount: The amount for 2022 is $8,870 (non-refundable credit; $8,662 in 2021), with a supplement up to $5,174 for those under 18 (the amount is reduced if child care expenses are claimed; $5,053 in 2021).

Child disability benefit: The child disability benefit is a tax-free benefit of up to $2,985 (2022) for families who care for a child under 18 with a severe and prolonged impairment in physical or mental functions. For 2021, the amount is $2,915.

Canada child benefit: In 2022, the maximum CCB benefit is $6,997 per child under six and up to $5,903 per child aged six through 17. In 2020, those amounts are $6,833 per child under six and up to $5,765 per child aged six through 17.

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Year Tax Notes from Cantax

Tax consequences of employer holiday gifts and bonuses (December 2021)
December 6, 2021

During the month of December, it’s customary for employers to provide something “extra” for their employees, by way of a holiday gift, a year-end bonus, or an employer-sponsored social event. Once again this year, as in 2020, there is unlikely to be an annual office holiday party; however, employees may still be able to look forward to something additional in the way of compensation during the last month of the year. In fact, given the current labour shortage and the difficulties employers are having attracting and retaining employees, there may be an added incentive for employers to show their appreciation to current employees by means of a holiday gift or bonus.

What such employers certainly don’t want to do is to create a tax liability for their employees. Unfortunately, it’s also the case that a failure to properly structure such gifts or other extras can result in unintended and unwelcome tax consequences to those employees.

Trying to formulate and administer the tax rules around holiday gifts is something of a no-win situation for the Canada Revenue Agency (CRA). On an individual or even a company level, the amounts involved are usually small, or even nominal, and the range of situations which must be addressed by the related tax rules are virtually limitless. As a result, the cost of drafting and administering those rules can outweigh the revenue generated by the enforcement of such rules, to say nothing of the potential ill will generated by imposing tax consequences on holiday gifts or parties. Notwithstanding, the potential exists for employers to provide what would otherwise be taxable remuneration in the guise of holiday gifts, and it’s the responsibility of the tax authorities to ensure that such situations don’t slip through the tax net.

There is, as a result, a detailed set of rules which outline the tax consequences of gifts and awards provided by the employer. The starting point for the rules is that any gift (cash or non-cash) received by an employee from his or her employer at any time of the year is considered to constitute a taxable benefit, to be included in the employee’s income for that year. On its website, the CRA indicates that the following types of gifts/bonuses/reimbursements will result in a taxable benefit to the employee:

cash or near-cash gifts and awards such as Christmas or holiday bonuses or near-cash gifts and awards such as gift certificates;
points that can be redeemed for air travel or other rewards; or an internal points system where an employee earns points and can redeem them for items from a catalogue;
reimbursements from an employer to an employee for a gift or an award that the employee selected, paid for, and then provided a receipt to the employer for reimbursement; and
hospitality rewards such as employer-provided team building lunches and rewards in the nature of a thank you for doing a good job.
While the above listing may seem comprehensive, the CRA does make an administrative concession in this area, allowing non-cash gifts (within a specified dollar limit) to be received tax-free by employees, as long as such gifts are given on religious holidays such as Christmas or Hanukkah, or on the occasion of a significant life event, like a birthday, marriage, or the birth of a child.

In sum, the CRA’s administrative policy is simply that non-cash gifts to an arm’s length employee, regardless of the number of such gifts, will not be taxable if the total fair market value of all such gifts (including goods and services tax or harmonized sales tax) to that employee is $500 or less annually. The total value over $500 annually will be a taxable benefit to the employee, and must be included on the employee’s T4 for the year, and on which income tax must be paid.

It’s important to remember the “non-cash” criterion imposed by the CRA, as the $500 per year administrative concession does not apply to what the CRA terms “cash or near-cash” gifts and all such gifts are considered to be a taxable benefit and included in income for tax purposes, regardless of amount. For this purpose, the CRA considers anything which could be easily converted to cash as a “near-cash” gift. Even a gift or award which cannot be converted to cash will be considered to be a near-cash gift if, in the CRA’s words, it “functions in the same way as cash”. So, a gift card or gift certificate which can be used by the employee to purchase his or her choice of merchandise or services would be considered a near-cash gift, and taxable as such. It’s not hard to see that drawing a firm line between cash and non-cash gifts can be difficult. The CRA provides the following information and examples to help clarify that difference.

Example of a near-cash gift or award
You give your employee a $100 gift card of gift certificate to a department store. The employee can use this to purchase whatever merchandise or service the store offers. We consider the gift card or gift certificate to be an additional remuneration that is a taxable benefit for the employee because it functions in the same way as cash.

Example of non-cash gifts or awards
You give your employee a voucher (which may be a ticket or certificate) that entitles the employee to receive an item for a set value at a store. For example, you may give your employees a voucher for a turkey valued up to $30 as a Christmas gift, and for convenience, you arrange for your employees to go to a particular grocery store and exchange the voucher for a turkey. The employees can only use the voucher to receive a turkey valued up to $30 (no substitutes).

It may seem nearly impossible to plan for employee holiday gifts and other benefits without running afoul of one or more of the detailed rules and administrative policies surrounding the taxation of such gifts and benefits. However, designing a tax-effective plan is possible, if the following rules are kept in mind.

Any cash or near-cash gifts should be avoided, as they will, no matter what the amount, create a taxable benefit to the employee. Although gift certificates or pre-paid credit cards are a popular choice, they aren’t a tax-effective one, as they will invariably be considered by the CRA to create a taxable benefit to the employee.

Where non-cash holiday gifts are provided to employees, gifts with a value of up to $500 can be received free of tax. The employer must be mindful of the fact that the $500 limit is a per-year and not a per-occasion limit. Where the employee receives non-cash gifts with a total value of more than $500 in any one taxation year, the portion over $500 is a taxable benefit to the employee.

While the rules around employer gifts aren’t complex, they are detailed, and it’s necessary to consider carefully the kinds of gifts which are given and to be mindful of the annual $500 per employee limit on non-cash gifts. At the end of the day, a gift which results in unintended and unwanted tax consequences is unlikely to engender much holiday spirit or goodwill on the part of the employee who receives it.

The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.


The tax year is ending - some planning steps to take before December 31 (December 2021)
December 6, 2021

For individual Canadian taxpayers, the tax year ends at the same time as the calendar year. What that means for individual Canadians is that any steps taken to reduce their tax payable for 2021 must be completed by December 31, 2021. (For individual taxpayers, the only significant exception to that rule is registered retirement savings plan contributions; with some exceptions, such contributions can be made any time up to and including March 1, 2022, and claimed on the return for 2021.)

While the remaining time frame in which tax planning strategies for 2021 can be implemented is only a few weeks, the good news is that the most readily available of those strategies don’t involve a lot of planning or complicated financial structures — in many cases, it’s just a question of considering the timing of steps which would have been taken in any event. What follows is a listing of some of the steps which should be considered by most Canadian taxpayers as the year end approaches.

Charitable donations
The federal government and all of the provincial and territorial governments provide a tax credit for donations made to registered charities during the year. In all cases, to claim a credit for a donation in a particular tax year, that donation must be made by the end of that calendar year — there are no exceptions.

There is, however, another reason to ensure donations are made by December 31. The credit provided by each of the federal, provincial, and territorial governments is a two-level credit, in which the percentage credit claimable increases with the amount of donation made. For federal tax purposes, the first $200 in donations is eligible for a non-refundable tax credit equal to 15% of the donation. The credit for donations made during the year which exceed the $200 threshold is, however, calculated as 29% of the excess. For the minority of taxpayers who have taxable income (for 2021) over $216,511, charitable donations above the $200 threshold can receive a federal tax credit of 33%.

As a result of the two-level credit structure, the best tax result is obtained when donations made during a single calendar year are maximized. For instance, a qualifying charitable donation of $400 made in December 2021 will receive a federal credit of $88 ($200 × 15% + $200 × 29%). If the same amount is donated, but the donation is split equally between December 2021 and January 2022, the total credit claimable is only $60 ($200 × 15% + $200 × 15%), and the 2022 donation can’t be claimed until the 2022 return is filed in April 2023. And, of course, the larger the donation in any one calendar year, the greater the proportion of that donation which will receive credit at the 29% level rather than the 15% level.

It’s also possible to carry forward, for up to 5 years, donations which were made in a particular tax year. So, if donations made in 2021 don’t reach the $200 level, it’s usually worth holding off on claiming the donation and carrying forward to the next year in which total donations, including carryforwards, are over that threshold. Of course, this also means that donations made but not claimed in any of the 2016, 2017, 2018, 2019, or 2020 tax years can be carried forward and added to the total donations made in 2021, and the aggregate then claimed on the 2021 tax return.

When claiming charitable donations, it’s possible to combine donations made by oneself and one’s spouse and claim them on a single return. Generally, and especially in provinces and territories which impose a high-income surtax — currently, Ontario and Prince Edward Island — it makes sense for the higher income spouse to make the claim for the total of charitable donations made by both spouses. Doing so will reduce the tax payable by that spouse and thereby minimize (or avoid) liability for the provincial high-income surtax.

Claiming home office expenses
As pandemic restrictions have eased and lockdowns ended, some employees have begun to return to the office on at least a part-time basis. However, there’s no question that millions of employees have spent at least a part of the 2021 tax year working from home. There are a lot of benefits to a work from home arrangement, and one of them is the ability to claim a tax deduction on the 2021 tax return for household costs that would have been incurred in any event.

In order to claim a deduction for costs related to a work from home space, employees must meet at least one of the following conditions:

the home work space is where the individual mainly (more than 50% of the time) does their work; or
the individual uses the workspace only to earn his or her employment income—he or she must also use it on a regular and continuous basis for meeting clients, customers, or other people in the course of his or her employment duties.
To establish that the required circumstances exist, and that the employee is not receiving an allowance or a reimbursement for home office expenses from the employer, it’s necessary to have a particular form completed and signed by that employer. That form, the T2200, can be found on the CRA website at

Once the requisite criteria are met, and certified by the employer on the T2200, a broad range of costs become deductible by the employee. Specifically, a salaried employee can claim and deduct the part of specified costs that relate to his or her work space, such as the cost of electricity, heating, home maintenance, and home internet access (but not internet connection) fees.

Where an individual who qualifies under either of the criteria outlined above is a commission employee, an even broader range of costs become deductible. In addition to costs for electricity, heating, home maintenance, and home internet access fees, a commission employee can also deduct a proportionate share of costs incurred for property taxes and home insurance.

There is no specific formula provided for determining the proportion of eligible costs which can be deducted for qualifying home office expenses. The employee can determine that percentage based on the square footage of the workspace as a percentage of the overall square footage of the home, or he or she can make that calculation based on the number of rooms in the house or apartment relative to the number of rooms used for work-related purposes. Whichever method is chosen, the most important consideration is that the approach taken (and the expenses claimed) be reasonable. In all cases, the Canada Revenue Agency (CRA) can ask the taxpayer to provide documentation and support for claims made.

In order to determine the amount of any deduction for eligible home office expenses which can be claimed on the return for 2021, it’s necessary to gather together bills and receipts for the various expense categories (utilities bills, property tax notices, etc.). It’s a tedious and sometimes time-consuming task, but necessary both in order to determine the amount of any available deduction and to have the required documentation for that deduction available should the CRA ask to see it. The T2200 signed by the employer does not have to be filed with the return but should also be kept as part of that documentation.

It should be noted that, for the 2020 tax year, the CRA permitted employees working from home to claim a home office deduction without the need to obtain a T2200 from the employer, or to calculate and document specific expenses as outlined above. However, when that administrative concession was announced, the CRA indicated that it was to be made available for the 2020 taxation year only. There has been no indication to date that such concession will be provided for 2021; consequently, employees should assume that, in order to claim a deduction for home office expenses for 2021, it will be necessary to follow the detailed steps outlined above.

Reviewing tax instalments for 2021
Millions of Canadian taxpayers (particularly the self-employed and retired Canadians) pay income taxes by quarterly instalments, with the amount of those instalments representing an estimate of the taxpayer’s total liability for the year.

The final quarterly instalment for this year will be due on Wednesday December 15, 2021. By that time, almost everyone will have a reasonably good idea of what his or her income and deductions will be for 2021 and so will be in a position to estimate what the final tax bill for the year will be, taking into account any tax planning strategies already put in place, as well as any RRSP contributions which will be made before March 1, 2022. While the tax return forms to be used for the 2021 year haven’t yet been released by the CRA, it’s possible to arrive at an estimate by using the 2020 form. Increases in tax credit amounts and tax brackets from 2020 to 2021 will mean that using the 2020 form will likely result in a slight overestimate of tax liability for 2021.

Once one’s tax bill for 2021 has been calculated, that figure should be compared to the total of tax instalments already made during 2021 (that figure can be obtained by checking one’s online tax account on the CRA website, or by calling the CRA’s Individual Income Tax Enquiries line at 1-800-959-8281). Depending on the result, it may then be possible to reduce the amount of the tax instalment to be paid on December 15 — and thereby free up some additional funds for the inevitable holiday spending!

The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.


Canada Revenue Agency announces individual tax brackets and credit amounts for 2022

November 22, 2021


The Canada Revenue Agency (CRA) has released the indexing factor which will apply for purposes of determining individual income tax brackets and non-refundable tax credits for 2022.

That indexing factor, which is based on increases to the Consumer Price Index, has be set at 2.4% for 2022. The comparable figure for 2021 was 1%.

 A full listing of individual income tax brackets and non-refundable credit amounts for 2022 can be found on the CRA website at



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The one word that is critical to staying organized with your business and frankly if you were in tune with this in your personal life, you would be better off as well 

Will get a few resources and future considerations in here and comments to help you tackle this critical word 

Your not alone 

It's more than just numbers  - TLR


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Efile Association of Canada

We have been a member of the association over the years, I served as a director for a few years, was a great experience. 




  • * Full roll out of Multi-factor Authentication (MFA) system with optional Passcode Grid;
  • * Ability to electronically file previous year returns is expanding, now current year plus previous four years (up from previous three years);
  • * Years available for Auto Fill My Return is expanding;
  • * Change to T1 and T2 default method of correspondence;
  • * EFiling of T3 Trust returns begins;
  • * Use of Electronic Signatures for T183 continues for 2022;
  • Confirm my Representative system rollout;
  • * EFile opens Feb 21, 2022

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