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Home My WebLink AboutThe Citizen, 2016-02-11, Page 11THE CITIZEN, THURSDAY, FEBRUARY 11, 2016. PAGE 11. FINANCIAL 2016 New tax changes helps Canadians making ,45,000+ „• Apo. r v'7-• v• %•• VIP alVal wide "� e .0001.4011* a1 046.10 cappOgNa co, -\ °� � ice" icor‘,< ' — "C." Canada lAgr,14'nV®' 1,401111 A9'ercY `use this {K rn4�l'oyCV or pa/ G flc"p‘ekNr9 �r` . Our C 41:111j �4.ti� waw"" G'sw cj,U valve Changes help middle class After being elected, the Liberal Government of Canada started making changes to taxes including more taxation on people who earn $200,000 and less taxes for those making between $45,282 and $90,563. Changes were also made to help teachers and families with children under 17 years of age. (NC Photo) How to avoid being scammed NC — Most people believe that they are immune to becoming a target of fraud. But victims come from all walks of life. Fraudsters are increasingly sophisticated, whether they are operating online, over the phone, or in person — making it more difficult to know who you can and can't trust. "By recognizing, rejecting and reporting scams, consumers can protect themselves and assist in the fight against fraud," says John Pecman, the Commissioner of Competition. "During Fraud Prevention Month and throughout the year, the Competition Bureau works with its partners to help Canadians combat fraudulent activity" The Competition Bureau advises to keep these tips in mind: • Beware of offers that seem "too good to be true". • Be vigilant when evaluating ads, whether it's for a job, a product or a service offered online, over the phone or in print. For example, if you see an ad for a job where you need to use your bank account to receive and pass on payments for a foreign company, or a promise that you will receive a percentage commission for each payment you pass on, it's probably a scam. • Be wary of any unsolicited phone calls, e-mails, text messages or letters from unknown sources. • Don't provide your information in response to unsolicited pop -ups. • When it comes to door-to-door sales, do not be rushed. Research the company, the individuals, the product or the offer and verify any contact and company details. You do not have to give them an answer at your door. • Be sure that you understand all terms and conditions of an offer of service or product before sending money or giving credit card or bank account details. Find the terms and conditions for any "free" trial offer that requires your credit card number. Often these can lead to charges that you didn't expect. Inform yourself about renewal and cancellation requirements. If this information is difficult to find, think twice before signing up. • Shred unneeded documents like receipts, bank statements, old tax returns and even junk mail containing your address, such as credit card preapprovals. All of these documents contain personal information and should be destroyed before they hit the recycling bin. • Know that trustworthy businesses almost never contact you or visit your home unannounced to ask for personal details, banking or financial information. They do not do so by e-mail, phone or text message, either. Brian E. Wightman Chartered Professional Accountant Certified General Accountant • Personal & Corporate Tax • Accounting & Bookkeeping • Agricultural Services Seaforth 519-527-1331 Email: wightman@bellnet.ca dor • Testimonials can appear quite believable by using so-called "satisfied customers", "celebrities", or "experts". Be aware these can be fake. To report a scam, or to learn more about Fraud Prevention Month in March, visit the Competition Bureau's website at competitionbureau.gc.ca/fraud, or phone 1-800-348-5358. Another helpful website is the Canadian Anti -Fraud Centre at www.antifraudcentre.ca, or they can be reached at 1-888-495-8501. NC — At the end of last year, the new Liberal government started implementing tax changes, and it's important to understand what they will mean for you. H&R Block has decoded a few of the most important updates for this year — from tax cuts on middle-class incomes to an expanded Home Buyers' Plan to accommodate sudden life changes: • Effective Jan. 1, 2016, the marginal tax rate on middle-class incomes decreases to 20.5 per cent from 22 per cent, while a new tax bracket of 33 per cent comes into effect for Canadians earning more than $200,000 per year. This will result in tax savings for anyone making more than $45,282, to a maximum of $679 for people making $90,563 or more. But anyone making in excess of $216,975 will be paying more. These changes will not impact 2015 returns. • The Tax -Free Savings Account (TFSA) contribution limits will be rolled back from $10,000 to $5,500 for 2016. The $10,000 limit for 2015 will not be changed and taxpayers who contributed less than this will be able to carry forward the balance. TFSAs are a great vehicle for saving and a critical part of long-term tax planning, regardless of your income, but it's important to be aware of the contribution limit as it could impact your tax and savings planning. • Legislation is being introduced that would eliminate the Family Tax Cut, first introduced in 2014. This income splitting allowed parents with children ages 18 or under to attribute up to $50,000 of the higher earner's income to the lower earner, saving eligible families up to $2,000 on their taxes. • The Liberals promised to introduce a 15 per cent refundable tax credit for teachers who spend up to $1,000 of their own money on school supplies. This means that qualifying teachers would get $150 whether they owe any taxes or not. • They also propose to expand the RRSP Home Buyers' Plan to allow Canadians hit by sudden life changes — divorce, moves, job loss — to use RRSP funds more than once to buy a house without a tax penalty. • The new Canada Child Benefit is expected to begin in July, 2016, replacing the Universal Child Care Benefit and Child Tax Benefit to provide more benefits to families with annual incomes under $150,000. DONALD A ANDREW ACCOUNTING Accounting & Income Tax Services for FARMS, BUSINESSES & INDIVIDUALS 296 Ross St., Lucknow Ph. 519-528-3019 dandrew@ hurontel.on.ca To thrive, a farm also nee•s the right financial conditions. Bryce Toll Account Manager Wingham and surrounding area 519-546-3760 bryce.toll@td.com Visit a branch or tdcanadatrust.com/agriculture ® The TD logo and other trademarks are the property of The Toronto -Dominion Bank. TD is committed to helping farmers build for the future. Our Agriculture Specialists are helping farmers succeed. Just ask the Franke brothers. They relied on our personalized approach and understanding of agricultural finance to meet their goals. And so can you. 1D Banking can be this comfortable. M04874 (0116)