Late filers: Get your back taxes sorted before year-end + MORE Dec 10th

Most people give money to charities with intentions that go beyond tax. But there are tax savings when you donate to charities. Here are some of the considerations. 

How do donations save you tax?

Charitable donations allow a taxpayer to claim non-refundable tax credits. These credits can reduce income tax owing. They are non-refundable because you need to have tax payable to save tax when you donate to charity. 

There is a federal tax credit of 15% on the first $200 of donations and up to 33% for a high-income taxpayer. There are provincial and territorial tax credits, as well. The combined credits can save over 50% tax, basically the same as a deduction that reduces taxable income for a high-income taxpayer. 

There is a limit that prevents you from claiming donations that exceed 75% of your net income (100% for certified cultural property). 

Sizable donations that are significant relative to income and tax payable may not save as much tax as intended, however…

A team of Canada Revenue Agency “cryptoasset auditors” has been mining a rich seam of unpaid taxes, working on more than 200 files and reaping more $100 million in the last three years. While the agency says up to 40% of taxpayers who use cryptoasset platforms either haven’t filed their taxes or are at high risk of non-compliance, no criminal charges have been laid since 2020.

Court filings involving a Vancouver-based crypto firm suggest the federal government’s efforts to rein in crypto-based tax evasion and illicit financing are hampered by limited resources for enforcement in a space hallmarked by its borderless anonymity.

A CRA application filed in Federal Court in September says Canada’s Minister of National Revenue is concerned about taxpayers using the anonymous underground economy to evade taxes, fuelled by cryptocurrencies and non-fungible tokens, which are digital representations of an asset. However, the agency’s top crypto auditor says in related documents that the CRA believes “there is no way to reliably identify taxpayers operating in the crypto space and assess compliance” with income tax reporting obligations…

Savings comparison tool

Find the best and most up-to-date savings rates in Canada using the comparison tool below. Plus, use the filters to assess your estimated return based on the size of your balance.

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Best high-interest savings account rates in Canada

Generally, savings accounts offer very low interest rates. So, if you want to earn on your deposits (rather than simply using your account as a temporary “holding tank” or directing to longer-term saving and investing vehicles), a savings account with a high interest rate is a no-brainer…

If you’re like many Canadians, you view bank fees as a necessary expense, but this couldn’t be farther from the truth. Paying a small fee each month isn’t usually much trouble, but over a whole year, it can really add up. The good news is that affordable banking has never been more in reach.

Recently, 14 financial institutions—including all 6 Big Banks—agreed with the Financial Consumer Agency of Canada (FCAC) to offer low- and no-cost bank accounts to all Canadians. Bank account shopping just got more profitable.

Is a different bank account really going to save me money?

If you already have a low- or no-cost bank account that meets your needs, making a change isn’t necessary. But for everyone else, there could be hundreds of dollars riding on it.

If you have a standard chequing account with any of the big banks, you’re probably paying between $15.95 and $17.95 per month. Over a year, that works out to around $200! That’s a couple hundred you could put towards your retirement savings (or into a rainy day fund)…

The last day on which tax practitioners can electronically file clients’ returns for tax years 2017 to 2024, as well as amended T1 returns for 2021 to 2024 using ReFILE services, before an annual month-long pause, is January 30, 2026. But there are important reasons for late T1 filers to add tax preparation to their holiday “to do” list and get any missed returns filed well before December 31.

Consider the following: 

The backdrop. Under the Income Tax Act, the normal reassessment period is three years from the date the notice of assessment or reassessment is mailed or received. However, under the taxpayer relief provisions, it is possible to request adjustments for errors or omissions for personal returns for 10 years. 

Tax year 2015 in focus. Tax year 2015 will become statute-barred under the 10-year taxpayer relief provisions after December 31, 2025. That means, for the 2015 tax year, the following opportunities to save tax dollars now and in the future will be lost:

Tax refunds owed to you for the 2015 tax year…