CCTB, AFETC Net & Working Income Канада


Your Canada Child Tax Benefit

    Simon Clark 3 years ago Views:

1 Your Canada Child Tax Benefit Including related provincial and territorial child benefits and credits For the period from July 2003 to June 2004 T4114(E) Rev. 03

2 The National Child Benefit (NCB) is a joint initiative of the federal, provincial, and territorial governments. This initiative is designed to:! help prevent and reduce the depth of child poverty;! ensure that families will always be better off as a result of parents working; and! reduce overlap and duplication of government programs and services. For more information, visit the NCB Web site at Visually impaired persons can get our publications in braille, large print, or etext (computer diskette), or on audio cassette by visiting our Web site at or by calling weekdays from 8:15 a.m. to 5:00 p.m. (Eastern Time). La version française de cette publication est intitulée Votre prestation fiscale canadienne pour enfants.

3 Table of contents Page Introduction. 4 What is the Canada Child Tax Benefit. 4 Can you get the CCTB. 5 When should you apply. 7 How do you apply. 7 What happens after you apply. 8 How do we calculate your benefit. 9 When do we pay your benefit? When do we recalculate your benefit? When should you contact us? Did the number of children in your care change? Are you moving? Has your marital status changed? Has a CCTB recipient died? Other changes Related provincial and territorial programs administered by the CCRA Alberta Family Employment Tax Credit BC Family Bonus New Brunswick Child Tax Benefit Newfoundland and Labrador Child Benefit Northwest Territories Child Benefit Nova Scotia Child Benefit Nunavut Child Benefit Saskatchewan Child Benefit Yukon Child Benefit Tax office addresses Do you need more information?

4 Introduction T his pamphlet explains who is eligible for the Canada Child Tax Benefit, how you apply for it, when you get it, and how we calculate it for the period July 2003 June It also gives details about provincial and territorial child benefit and credit programs administered by the Canada Customs and Revenue Agency (CCRA). What is the Canada Child Tax Benefit (CCTB)? T he CCTB is a non-taxable amount paid monthly to help eligible families with the cost of raising children under the age of 18. Included in the CCTB is the National Child Benefit Supplement (NCBS), a monthly benefit for low-income families with children. The NCBS is the Government of Canada s contribution to the National Child Benefit (NCB), a joint initiative of federal, provincial, and territorial governments. As part of the NCB, certain provinces and territories also provide complementary benefits and services for children in low-income families, such as child benefits, earned income supplements, and supplementary health benefits, as well as child care, children-at-risk, and early childhood services. Under proposed changes, a new supplement, the Child Disability Benefit (CDB), will be included with CCTB payments beginning in March The CDB will be paid to families with children who have a severe and prolonged physical or mental impairment. See page 11 for details. 4

5 Can you get the CCTB? T o get the CCTB, all the following conditions must be met. 1) You must live with the child, and the child must be under the age of 18. 2) You must be the person who is primarily responsible for the care and upbringing of the child. This means you are responsible for such things as supervising the child s daily activities and needs, making sure the child s medical needs are met, and arranging for child care when necessary. If there is a female parent who lives with the child, we usually consider her to be this person. However, if the female parent does not live with the child, it could be the father, a grandparent, or a guardian. 3) You must be a resident of Canada. We consider you to be a resident of Canada when you establish sufficient residential ties in Canada. 4) You or your spouse or common-law partner (defined on page 6) must be: a Canadian citizen; a permanent resident (as defined in the Immigration and Refugee Protection Act); a protected person (as defined in the Immigration and Refugee Protection Act); or a temporary resident (as defined in the Immigration and Refugee Protection Act) who has lived in Canada throughout the previous 18 months. See How do we calculate your benefit? on page 9 for information about other conditions that will determine the amount of your benefit. 5

6 Children s Special Allowances We pay Children s Special Allowances for children under the age of 18 who are under the care of a government department, agency, or institution. You cannot receive the CCTB for a child for any month in which Children s Special Allowances are payable for that child. Spouse You have a spouse when you are legally married. You are separated if you have been living apart from your spouse for a period of 90 days or more because of a breakdown in your relationship and you have not reconciled. Common-law partner You have a common-law partner and are living common law if you live and have a relationship with a person of the same or opposite sex who is not your spouse, and any of the following applies. He or she:! is the natural or adoptive parent of your child; or! has been living and having a relationship with you for at least 12 continuous months (include any period that you were separated for less than 90 days because of a breakdown in the relationship); or! lived with you previously as your spouse or common-law partner. Under proposed changes, this last condition will no longer apply to 2001 and later years. You are separated if you have been living apart from your common-law partner for a period of 90 days or more because of a breakdown in your relationship and you have not reconciled. 6

7 When should you apply? Y ou should apply for the CCTB as soon as possible after:! your child is born;! a child starts to live with you; or! you become a resident of Canada. You should not delay applying because we make retroactive payments for up to 11 months from the month we receive your application. However, if circumstances beyond your control prevented you from sending us your application on time, you can ask for an extension by attaching a note to your application or writing to your tax office. You will find the tax office addresses on page 23. Note If you are eligible for the CCTB, you should apply even if you think you will not be entitled to receive it based on your current family net income. We recalculate your entitlement every July based on your family net income for the previous year. How do you apply? T o apply for the CCTB, complete Form RC66, Canada Child Tax Benefit Application. Depending on your immigration and residency status, you may also have to complete the schedule Status in Canada/Statement of Income. You need to attach proof of birth for your child to your application if we have not previously paid CCTB to anyone for this child, and your child was born outside Canada or your child is one year of age or older. 7

8 If you and your spouse or common-law partner were residents of Canada for any part of 2002, you must both file a 2002 return before we can calculate your benefit. To continue getting the CCTB, you both have to file a return every year you are residents of Canada, even if you have no income to report. If your spouse or common-law partner is a non-resident of Canada, you must complete Form CTB9, Canada Child Tax Benefit Statement of Income for each year he or she is a non-resident of Canada. Note In cases of separation or divorce, it is possible that both parents share more or less equally in the care and upbringing of a child. If each parent wants to apply for CCTB benefits for alternating six-month periods, attach a note to the application to clearly indicate the request. Both parents must sign the note and application. If you have questions, call What happens after you apply? Y ou can expect to hear from us before the end of the second month after we get your application. For example, if we get your application in August, you can expect to hear from us before the end of October. If your application is not complete, we will ask for the missing information. This will delay processing your application. After we process your application, we will send you a Canada Child Tax Benefit Notice. It will tell how much you will get, if any, and what information we used to calculate the amount. 8

9 We may review your situation at a later date to confirm that the information you gave us has not changed. Note Keep your Canada Child Tax Benefit Notice in case you need to refer to it when you contact us. You may also have to provide information from your notice to other federal, provincial, or territorial government departments. How do we calculate your benefit? T he CCTB combines a basic benefit, a National Child Benefit Supplement (NCBS), and under proposed changes, a Child Disability Benefit supplement. For the period July 2003 to June 2004, we calculate your benefit based on:! the number of children you have, and their ages;! your province or territory of residence;! your family net income for 2002;! your or your spouse or common-law partner s claim for child care expenses for 2002; and! under proposed changes, your child s eligibility for the Child Disability Benefit. See page 11 for details. Family net income Family net income is your net income added to the net income of your spouse or common-law partner, if you have one. Family net income does not include your child s net income. Net income is the amount on line 236 of a person s return. 9

10 If you or your spouse or common-law partner were non-residents of Canada for part or all of the year, family net income includes your or your spouse or common-law partner s income for any part of the year you were not residents of Canada. Child and family benefits online calculator You can use our new online service to get an estimate of your child and family benefits by visiting our Web site at Basic benefit We calculate the basic benefit as described below:! $97.41 per month for each child under the age of 18 (if you live in Alberta, see the note below);! an additional $6.83 per month for your third and each additional child; and! an additional $19.33 per month for each child under the age of seven. This amount is reduced by 25% of any amount you or your spouse or common-law partner claimed for child care expenses for We reduce the basic benefit if your family net income is more than $33,487. For a family with one child, the reduction is 2.5% of the amount of family net income that is more than $33,487. For families with two or more children, the reduction is 5%. Note The Alberta provincial government has chosen to vary the amount of the basic benefit their residents get. The basic monthly benefit is:! $89.25 for children under 7;! $95.25 for children 7 to 11;! $ for children 12 to 15; and! $ for children 16 or

11 National Child Benefit Supplement (NCBS) The NCBS amounts are:! $ per month for the first child;! $ per month for the second child; and! $98.00 per month for each additional child. The NCBS will be reduced by a percentage of family net income that is more than $21,529. For a family with one child, the reduction is 12.2% of the amount of family net income that is more than $21,529; for a family with two children, the reduction is 22.7%; and for families with three or more children, the reduction is 32.6%. Note If you are on social assistance, the NCBS may affect the amount of your social assistance payments. Many provinces and territories will consider the NCBS you get as income and will adjust your basic social assistance by this amount. Others may adjust their basic social assistance rates by using the maximum NCBS amount. Child Disability Benefit Under proposed changes, families with low or modest incomes with children who qualify for the disability amount are eligible to receive a Child Disability Benefit (CDB) supplement with their CCTB. A child qualifies for the disability amount when we have approved Form T2201, Disability Tax Credit Certificate, for that child. For families with children who qualify for the disability amount, the CDB is calculated automatically. Families will continue to be able to claim the disability amount and corresponding supplement on their return for qualifying children. For more information on the disability amount, visit our Web site at or see the T.I.P.S. (Tax Information Phone Service) and T.I.P.S. Online section on the back cover of this pamphlet. 11

12 The first CDB payments will be included with the March 2004 CCTB payments. Eligible families will receive a retroactive payment for the July 2003 to March 2004 period. The CDB will provide up to a maximum of $ per month to families with an eligible child with a qualifying disability based on family net income. For more information about the CDB, visit our Web site at or call When do we pay your benefit? W e generally pay your benefit on the 20th of each month. However, if your monthly entitlement is less than $10, we will make only one payment to cover the period July 2003 to June 2004, on July 18, If you haven t received your payment by the 20th of any month, please wait five working days before calling us. Direct deposit You can have your CCTB payments deposited directly into your account at a financial institution. To start direct deposit, complete the Direct deposit section on Form RC66, Canada Child Tax Benefit Application, or send us a completed Form T1-DD(1), Direct Deposit Request Individuals. To get Form T1-DD(1), visit our Web site at or call

13 When do we recalculate your benefit? W e will recalculate your benefit and send you a Canada Child Tax Benefit Notice showing our revised calculation:! every July based on the returns that you and your spouse or common-law partner filed for the previous year;! after each reassessment of either your or your spouse or common-law partner s return that affects the calculation of your benefit;! after a child for whom you receive the CCTB turns 18 (the last payment you will receive will be for the month of his or her birthday); and! after you tell us about changes to your situation that could affect your benefit (see the next section). When should you contact us? A fter you have applied for the CCTB, you should let us know as soon as possible of certain changes, as well as the date they happened or will happen. This section explains how you should tell us about these changes. Note For confidentiality reasons, we can only discuss a file with the person who receives the CCTB. However, we can speak with someone else if the CCTB recipient sends us written permission naming the person they would like us to deal with. 13

14 Did the number of children in your care change? If your child is born or a child starts to live with you, you will need to apply for the CCTB for that child. For details, see How do you apply? on page 7. If a child for whom you were receiving the benefit is no longer in your care, stops living with you, or dies, call to let us know. Are you moving? If you move, be sure to let us know. Otherwise, your payments may stop, whether you receive them by cheque or by direct deposit. To change your address, use our online service at or call Has your marital status changed? If your marital status changes, be sure to let us know, as this may affect the amount of CCTB to which you are entitled. Complete Form RC65, Marital Status Change, or tell us in a letter of your new status and the date of the change. If you are now married or living common law, also include your spouse or common-law partner s name, address, and social insurance number. You and your spouse or common-law partner must sign the form or letter. Send the form or letter to one of the tax offices listed on page 23. Has a CCTB recipient died? If a CCTB recipient dies, the next of kin or the estate should inform us in writing. Someone else may be eligible to get the benefits for the child. Send the letter to one of the tax offices listed on page

15 Other changes Call to tell us:! if your or your spouse or common-law partner s immigration or residency status changes; or! if any of the personal information, such as marital status or child information, shown on your Canada Child Tax Benefit Notice is incorrect. Direct deposit If you get your payments by direct deposit and your banking information changes, send us a completed Form T1-DD(1), Direct Deposit Request Individuals. To get Form T1-DD(1), visit our Web site at or call Related provincial and territorial programs administered by the CCRA T he CCRA administers the following provincial and territorial child benefit and credit programs:! Alberta Family Employment Tax Credit;! BC Family Bonus;! New Brunswick Child Tax Benefit;! Newfoundland and Labrador Child Benefit;! Northwest Territories Child Benefit;! Nova Scotia Child Benefit;! Nunavut Child Benefit;! Saskatchewan Child Benefit; and! Yukon Child Benefit. 15

16 You do not need to apply separately for these benefits. We use the information from your CCTB application to determine your eligibility for these programs. If you are eligible, the amount of your payments will be calculated based on information from the tax returns you and your spouse or common-law partner file. If you use the direct deposit service for your CCTB payments, we will deposit payments from these programs into the same account. Note Earned income and working income used in the calculation of certain provincial and territorial benefits includes income from employment, self-employment, training allowances, scholarships, research grants, and disability payments received under the Canada Pension Plan and the Quebec Pension Plan. If you live in Quebec, we will automatically send all information needed for the Quebec family allowance to the Régie des rentes du Québec. We will send this information whether or not you are entitled to the CCTB. If you live in Ontario, we will automatically send the information needed for the Ontario Child Care Supplement for Working Families to the Ontario Ministry of Finance. Alberta Family Employment Tax Credit The Alberta Family Employment Tax Credit is a non-taxable amount paid to families with working income that have children under the age of

17 You may be entitled to receive whichever of the following three amounts is the least:! $500 ($41.66 per month) for each child under age 18;! $1,000 ($83.33 per month); or! 8% of your family s working income that is more than $6,500. The credit is reduced by 4% of the amount of family net income that is more than $25,000. Payments are made in July 2003 and January This program is fully funded by the Province of Alberta. Payments are issued separately from the CCTB. For more information, call BC Family Bonus The BC Family Bonus program includes the basic Family Bonus and the BC Earned Income Benefit. This program provides non-taxable amounts paid monthly to help low- and modest-income families with the cost of raising children under the age of 18. Benefits are combined with the CCTB into a single monthly payment. Basic Family Bonus For families with net income below $20,500, the basic Family Bonus provides the following amounts:! $1.58 per month for the first child;! $17.75 per month for the second child; and! $23.83 per month for each additional child. 17

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18 Families whose net income is $20,500 or more may also be entitled to a basic Family Bonus amount depending on their net income and the number of children they have. BC Earned Income Benefit Families whose earned income is more than $3,750 may also be entitled to the following:! up to $50.41 per month for the first child;! up to $33.75 per month for the second child; and! up to $27.50 per month for each additional child. Families whose net income is more than $20,921 may get part of the earned income benefit. This program is fully funded by the Province of British Columbia. For more information, call New Brunswick Child Tax Benefit The New Brunswick Child Tax Benefit (NBCTB) is a non-taxable amount paid monthly to qualifying families with children under the age of 18. The New Brunswick Working Income Supplement (NBWIS) is an additional benefit paid to qualifying families with earned income who have children under the age of 18. Benefits are combined with the CCTB into a single monthly payment. Under the NBCTB, you may be entitled to a basic benefit of $20.83 per month for each child. The amount of the basic benefit is reduced if your family net income is more than $20,

19 The NBWIS is an additional benefit of up to $20.83 per month. It is phased in once family earned income is more than $3,750 and reaches the maximum benefit when family earned income is $10,000. Families with net income between $20,921 and $25,921 may get part of the supplement. This program is fully funded by the Province of New Brunswick. For more information, call Newfoundland and Labrador Child Benefit The Newfoundland and Labrador Child Benefit (NLCB) is a non-taxable amount paid monthly to help low-income families with the cost of raising children under the age of 18. The Mother Baby Nutrition Supplement (MBNS) is an additional benefit paid to qualifying families who have children under the age of one. Benefits are combined with the CCTB into a single monthly payment. Under the NLCB, you may be entitled to a benefit of:! $18 per month for the first child;! $26 per month for the second child;! $28 per month for the third child; and! $30 per month for each additional child. Families with net income between $17,397 and $22,397 may get part of the benefit. Under the MBNS, you may be entitled to a benefit of $45 per month for each child under the age of one if your family net income is under $22,

20 This program is fully funded by the Province of Newfoundland and Labrador. For more information, call Northwest Territories Child Benefit The Northwest Territories Child Benefit (NWTCB) is a non-taxable amount paid monthly to qualifying families with children under the age of 18. The Territorial Worker s Supplement, part of the NWTCB program, is an additional benefit paid to qualifying families with working income who have children under the age of 18. Benefits are combined with the CCTB into a single monthly payment. Under the NWTCB, you may be entitled to a basic benefit of $27.50 per month for each child. Families who have earned income of more than $3,750 may also get the Territorial Worker s Supplement of up to $22.91 per month for one child, and up to $29.16 per month for two or more children. Families with net incomes above $20,921 may get part of the benefit. This program is fully funded by the Northwest Territories. For more information, call Nova Scotia Child Benefit The Nova Scotia Child Benefit (NSCB) is a non-taxable amount paid monthly to help low- and modest-income families with the cost of raising children under the age of 18. Benefits are combined with the CCTB into a single monthly payment. 20

21 Under the NSCB, you may be entitled to a benefit of:! $37.08 per month for the first child;! $53.75 per month for the second child; and! $60.00 per month for each additional child. Families with net income between $16,000 and $20,921 may get part of the benefit. This program is fully funded by the Province of Nova Scotia. For more information, call Nunavut Child Benefit The Nunavut Child Benefit (NUCB) is a non-taxable amount paid monthly to qualifying families with children under the age of 18. The Territorial Worker s Supplement, part of the NUCB program, is an additional benefit paid to qualifying families with working income who have children under the age of 18. Benefits are combined with the CCTB into a single monthly payment. Under the NUCB, you may be entitled to a basic benefit of $27.50 per month for each child. Families who have earned income of more than $3,750 may also get the Territorial Worker s Supplement of up to $22.91 per month for one child, and up to $29.16 per month for two or more children. Families with net income above $20,921 may get part of the benefit. This program is fully funded by Nunavut. For more information, call

22 Government of Saskatchewan Saskatchewan Child Benefit The Saskatchewan Child Benefit (SCB) is a non-taxable amount paid monthly to help lower-income families with the cost of raising children under the age of 18. Benefits are combined with the CCTB into a single monthly payment. Under the SCB, you may be entitled to a benefit of $42 per year for the first child, $255 per year for the second child, and $330 per year for each additional child. Families with net income above $15,921 may get part of the benefit. This program is fully funded by the Province of Saskatchewan. For families living on a reserve, benefits are funded by Indian and Northern Affairs Canada. For more information, call Yukon Child Benefit The Yukon Child Benefit (YCB) is a non-taxable amount paid monthly to help low- and modest-income families with the cost of raising children under the age of 18. Benefits are combined with the CCTB into a single monthly payment. Under the YCB, you may be entitled to a benefit of $25 per month for each child. Families with net income above $16,700 may get part of the benefit. This program is funded by the Yukon with a contribution from Indian and Northern Affairs Canada on behalf of Status Indian children. For more information, call

23 Tax office addresses I f you need to send us a letter, use one of the addresses shown below: St. John s Tax Centre PO Box 12071, Stn A St. John s NL A1B 3Z1 Summerside Tax Centre Pope Road Summerside PE C1N 5Z7 Jonquière Tax Centre PO Box 1900, Stn LCD Jonquière QC G7S 5J1 Shawinigan-Sud Tax Centre PO Box 3000, Stn Main Shawinigan-Sud QC G9N 7S6 Sudbury Tax Services Office PO Box 20000, Stn A Sudbury ON P3A 5C1 Winnipeg Tax Centre PO Box 14000, Stn Main Winnipeg MB R3C 3M2 Surrey Tax Centre 9755 King George Highway Surrey BC V3T 5E1 23

Net Income

NI flows through the balanced sheet through retained earnings, and through the cash flow in the indirect method.

What is Net Income?

Net income is the amount of accounting profit a company has left over after paying off all its expenses. Net income is found by taking sales revenue Sales Revenue Sales revenue is the income received by a company from its sales of goods or the provision of services. In accounting, the terms «sales» and «revenue» can be, and often are, used interchangeably, to mean the same thing. Revenue does not necessarily mean cash received. and subtracting COGS, SG&A SG&A SG&A includes all non-production expenses incurred by a company in any given period. This includes expenses such as rent, advertising, marketing, accounting, litigation, travel, meals, management salaries, bonuses, and more. On occasion, it may also include depreciation expense , depreciation, and amortization, interest expense Interest Expense Interest expense arises out of a company that finances through debt or capital leases. Interest is found in the income statement, but can also be calculated through the debt schedule. The schedule should outline all the major pieces of debt a company has on its balance sheet, and calculate interest by multiplying the , taxes and any other expenses.

Net income is the last line item on the income statement Income Statement The Income Statement is one of a company’s core financial statements that shows their profit and loss over a period of time. The profit or loss is determined by taking all revenues and subtracting all expenses from both operating and non-operating activities.This statement is one of three statements used in both corporate finance (including financial modeling) and accounting. proper. Some income statements, however, will have a separate section at the bottom reconciling beginning retained earnings with ending retained earnings, through net income and dividends.

Source: Amazon SEC filing

Other names for Net Income

The bottom line of a company’s income statement has three commonly used names, which include:

  • Net Income
  • Net Profit
  • Net Earnings

All three of these terms mean the same thing, which can sometimes be confusing for people who are new to finance and accounting.

In this article, we use all three terms interchangeably.

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Ties to other financial statements


The net income is very important in that it is a central line item to all three financial statements Three Financial Statements The three financial statements are the income statement, the balance sheet, and the statement of cash flows. These three core statements are intricately linked to each other and this guide will explain how they all fit together. By following the steps below you’ll be able to connect the three statements on your own. . While it is arrived at through the income statement, the net profit is also used in both the balance sheet and the cash flow statement.

Net income flows into the balance sheet through retained earnings, an equity account. This is the formula for finding ending retained earnings:

Ending RE = Beginning RE + Net Income – Dividends

Assuming there are no dividends, the change in retained earnings between periods should equal the net earnings in those periods. If there is no mention of dividends in the financial statements, but the change in retained earnings does not equal net profit, then it’s safe to assume that the difference was paid out in dividends.

In the cash flow statement, net earnings are used to calculate operating cash flows using the indirect method. Here, the cash flow statement starts with net earnings and adds back any non-cash expenses that were deducted in the income statement. From there, the change in net working capital Net Working Capital Net Working Capital (NWC) is the difference between a company’s current assets (net of cash) and current liabilities (net of debt) on its balance sheet. It is a measure of a company’s liquidity and its ability to meet short-term obligations as well as fund operations of the business. The ideal position is to is added to find cash flow from operations.

Profitability and Return on Equity

Net earnings are also used to determine the net profit margin. This is a handy measure of how profitable the company is on a percentage basis, when compared to its past self or to other companies.

Net profit margin is also used in the DuPont method for decomposing return on equity – ROE Return on Equity (ROE) Return on Equity (ROE) is a measure of a company’s profitability that takes a company’s annual return (net income) divided by the value of its total shareholders’ equity (i.e. 12%). ROE combines the income statement and the balance sheet as the net income or profit is compared to the shareholders’ equity. . The basic DuPont formula splits ROE out into three components:

ROE = Net Profit Margin x Total Asset Turnover x Financial Leverage

Analyzing a company’s ROE through this method allows the analyst to determine the company’s operational strategy. A company with high ROE due to high net profit margins, for example, can be said to operate a product differentiation strategy.

Difference between net income and cash flow

Net income is an accounting metric and does not represent the economic profit or cash flow Valuation Free valuation guides to learn the most important concepts at your own pace. These articles will teach you business valuation best practices and how to value a company using comparable company analysis, discounted cash flow (DCF) modeling, and precedent transactions, as used in investment banking, equity research, of a business.

Since net profit includes a variety of non-cash expenses such as depreciation, amortization, stock-based compensation, etc., it is not equal to the amount of cash flow a company produced during the period.

For this reason, financial analysts go to great lengths to undo all of the accounting principles and arrive at cash flow for valuing a company.

Additional resources

  • How the 3 statements are linked (free webinar) CFI Webinar — Link the 3 Financial Statements This CFI quarterly webinar provides a live demonstration of how to link the 3 financial statements in Excel step by step. Follow the instructor in Excel and download the completed template from the webinar. Learn the formulas and proper linking procedure to connect the income statement, cash flow, and balance sheet
  • Depreciation expense Depreciation Expense Depreciation expense is used to reduce the value of plant, property, and equipment to match its use, and wear and tear, over time. Depreciation expense is used to better reflect the expense and value of a long-term asset as it relates to the revenue it generates.
  • Valuation methods Valuation Methods When valuing a company as a going concern there are three main valuation methods used: DCF analysis, comparable companies, and precedent transactions. These methods of valuation are used in investment banking, equity research, private equity, corporate development, mergers & acquisitions, leveraged buyouts and finance
  • Financial modeling gu > Free Financial Modeling Guide This financial modeling guide covers Excel tips and best practices on assumptions, drivers, forecasting, linking the three statements, DCF analysis, Excel modeling and much more. Designed to be the best free modeling guide for analysts by using examples and step by step instructions. Investment banking, FP&A, research

What the Liberal budget means for high-income Canadians

For Canadians making more than $200,000, the Liberal budget held little good news, including cutting tax credits and child benefits for families already facing a new, higher tax burden

March 23, 2020
1:28 PM EDT

No changes to capital gains inclusion rates. No changes to the taxation of employee stock options. And no major changes to private corporations, including professional corporations, and their ability to access the small business tax rate and continue to income-split with the owner’s family members.


But the absence of these changes is where the good news pretty much ends for high-income taxpayers, who are already facing a federal tax hit in 2020 of an additional four per cent on income over $200,000, and will face an even higher tax burden in a number of other areas as a result of Tuesday’s budget. Let’s take a look at a few of the changes that will impact higher income Canadians.

Canada Child Benefit

As was widely reported, the budget has replaced the current Canada Child Tax Benefit (CCTB) and the Universal Child Care Benefit (UCCB) with the new Canada Child Benefit (CCB), which will begin in July 2020.

The new CCB is a non-taxable benefit that is paid monthly and is based on adjusted family net income and the number of children in your family. While the old CCTB was also tax-free and income-tested, the UCCB, which dates back to 2006, while taxable, was not income-tested.

As a result of Tuesday’s budget, a high-income family whose income was too high to receive any CCTB but was still receiving a monthly UCCB amount — $160 (or $1,920 annually) for kids under age six and $60 per month (or $720 annually) for children aged six through 17 — will likely not see any benefits once the new regime takes effect.

For example, using the CCB calculator released on Tuesday on the Department of Finance’s website, we can see that a couple with two kids aged six to 17 and a total family income of $200,000 will receive no benefits at all come July 2020 as, to quote the website, “It looks like your family income is high enough to put you outside the range of benefits under the Canada Child Benefit.”

In addition, the proposed elimination of both the children’s fitness tax credit and the children’s arts tax credit for children under 16 years of age will cost parents up to an additional $150 per year per child for fitness activities and $75 per year per child for arts programs.

Elimination of family income splitting

Tuesday’s budget also cancelled the “Family Tax Cut” credit, which was introduced by the previous government in 2014, and provided a version of income splitting that allowed an individual to notionally transfer up to $50,000 of income to his or her lower-income spouse or common-law partner, provided they had a child who was under 18 at the end of the year. The credit was capped at $2,000 annually and was available for the 2014 and 2015 taxation years.

The good news is that pension income splitting won’t be affected by this change. Other income splitting strategies that remain unaffected and that can substantially help higher-income couples with widely disparate incomes include the use of a spousal or common-law partner RRSPs for post-retirement income splitting and lending funds to lower-income family members at the CRA’s prescribed interest rate (currently set at one per cent until at least June 30, 2020).

Donations of real estate and private company shares

Finally, in a surprise move, the budget reversed a proposal that would have been very beneficial for philanthropy in Canada. The budget announced that the Liberals will not be proceeding with the implementation of the previous government’s measure that would have eliminated the capital gains tax on the sale of appreciated private company shares and real estate if the proceeds were donated to charity within 30 days. This change was scheduled to come into effect on Jan. 1, 2020.

On the positive side, however, no changes are being proposed to the rules governing the donation of publicly traded securities to charity. Since 2006, donations of publicly traded shares, mutual funds or segregated funds to a registered charity not only get you a tax receipt equal to the fair market value of the securities or funds being donated, but are also not subject to capital gains tax on any accrued gain on the shares or funds donated. Similarly, if you’re an employee who has received stock options, you can choose to donate the shares acquired from an option exercise to charity within 30 days of exercise and eliminate the stock option benefit from tax.

Illustration by Chloe Cushman/National Post

Jamie Golombek, CPA, CA, CFP, CLU, TEP is the Managing Director, Tax & Estate Planning with CIBC Wealth Strategies Group in Toronto.

Air Canada AC (Canada: Toronto)

12:37 PM EST 11/18/19
Volume 347,547
  • Compare to Benchmark:

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Fiscal year is January-December. All values CAD Millions. 2020 2020 2020 2015 2014 5-year trend
Sales/Revenue 18,065 16,252 14,677 13,868 13,272
Sales Growth 11.16% 10.73% 5.83% 4.49%
Cost of Goods Sold (COGS) incl. D&A 14,354 12,546 11,094 10,414 9,790
COGS excluding D&A 13,236 11,562 10,278 9,759 9,247
Depreciation & Amortization Expense 1,118 984 816 655 543
Depreciation 511
Amortization of Intangibles 32
Amortization of Deferred Charges
COGS Growth 11.16% 10.73% 5.83% 4.49%
Gross Income 3,711 3,706 3,583 3,454 3,482
Gross Income Growth 11.16% 10.73% 5.83% 4.49%
Gross Profit Margin 20.54%
SG&A Expense 1,883 1,738 1,589 1,415 1,562
Research & Development
Other SG&A 1,883 1,738 1,589 1,415 1,562
SGA Growth 11.16% 10.73% 5.83% 4.49%
Other Operating Expense 508 1,069
EBIT 1,828 1,994 1,531 851
Unusual Expense (8) (14) 176 53 (57)
Non Operating Income/Expense (1,243) (481) (673) (882) (550)
Non-Operating Interest Income 108 60 48 46 39
Equity in Affiliates (Pretax)
Interest Expense 296 275 316 332 292
Interest Expense Growth 11.16% 10.73% 5.83% 4.49%
Gross Interest Expense 331 311 374 402 322
Interest Capitalized 35 36 58 70 30
Pretax Income 405 1,286 877 308 105
Pretax Income Growth 11.16% 10.73% 5.83% 4.49%
Pretax Margin 2.24%
Income Tax 238 (743) 1
Income Tax — Current Domestic 6 16 1
Income Tax — Current Foreign
Income Tax — Deferred Domestic 232 (759)
Income Tax — Deferred Foreign
Income Tax Credits
Equity in Affiliates
Other After Tax Income (Expense)
Consolidated Net Income 167 2,029 876 308 105
Minority Interest Expense 5 5
Net Income 167 2,029 876 303 100
Net Income Growth 11.16% 10.73% 5.83% 4.49%
Net Margin 0.92%
Extraordinaries & Discontinued Operations
Extra Items & Gain/Loss Sale Of Assets
Cumulative Effect — Accounting Chg
Discontinued Operations
Net Income After Extraordinaries
Preferred Dividends
Net Income Available to Common 167 2,029 876 303 100
EPS (Basic) 0.61 7.43 3.16 1.06 0.35
EPS (Basic) Growth 11.16% 10.73% 5.83% 4.49%
Basic Shares Outstanding 272 273 277 285 286
EPS (Diluted) 0.61 7.30 3.11 1.04 0.34
EPS (Diluted) Growth 11.16% 10.73% 5.83% 4.49%
Diluted Shares Outstanding 276 278 282 292 293
EBITDA 2,946 2,952 2,810 2,186 1,394
EBITDA Growth 11.16% 10.73% 5.83% 4.49%
EBITDA Margin 16.31%
EBIT 1,828 1,994 1,531 851

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How would a guaranteed annual income work in Canada?

The Liberal government could be taking a hard look at the possibility of a guaranteed annual income after it invited one of Canada’s leading experts on the subject to speak at a pre-budget hearing in Ottawa on Thursday.

University of Manitoba health economist Evelyn Forget spoke in the House of Commons about the benefits of a guaranteed annual income (GAI), or basic annual income, and how it could replace the existing, often complicated, patchwork of social assistance programs.

What is a guaranteed annual income?

Forget told Global News in a phone interview Friday the a GAI would be in the neighbourhood of $18,000 a year for every Canadian.

“If people have no income from any other source you get a certain agreed upon level and then as wage income increases, if you go out for example and earn $100, your benefit declines by $50 so you get to keep half of anything you earn,” she said.

WATCH: How a guaranteed minimum income could reduce poverty

Forget said the challenge is finding the right dollar figure that will raise people out of extreme poverty while maintaining a financial incentive to work.

Who would qualify for the guaranteed annual income?

She said that unlike provincial welfare programs a GAI model would be available to both the working poor as well as people on assistance.

“If you’re working a minimum wage at $11 an hour or whatever it is in your province you would come in well below the limit and you would receive supplementation under this scheme,” Forget said. “It creates a work incentive to ensure that people who work are always better off than if they didn’t work.”


Has the plan been implemented anywhere?

Forget conducted research on the idea, a program called Mincome, that took place between 1974 and 1978 in Dauphin, Man., and Winnipeg that provided a guaranteed minimum income for some of its residents. She said the benefits of a GAI include lower poverty rates, less hospital visits and increased high school completion rates.

However, a 2015 report from the Fraser Institute suggested while the idea is appealing, it would not work in Canada. It suggested one of the biggest hurdles would be getting all levels of government on board with a single program instead of the number of social assistance programs that exist today.

The idea seems to be gaining traction at all levels of government across the country. Quebec Premier Philippe Couillard appointed a cabinet committee in January to look at creating a GAI for the province, while mayors from Calgary and Edmonton have supported the idea and Green Party Leader Elizabeth May included it in her party platform in the last federal election.

While the Liberals did not make a guaranteed annual income an election promise they included it among its policy resolutions in a mandate letter to Families, Children and Social Development Minister Jean-Yves Duclos.

Glen Hodgson, chief economist with Conference Board of Canada, likes the idea of a guaranteed annual income as it has to the potential to reduce bureaucratic costs.

“I think there is a chance to actually streamline administration, reduce massive administrative costs being felt by the feds, provinces and cities,” he said.

Hodgson says under the current employment insurance system once a person applies for welfare, if they find a job the quickly begin losing benefits.

“If they take the initiative and go out and find a job we penalize them by taking big chunks of their other income,” said Hodgson. “The attractiveness of the guaranteed income model is you can have a very low marginal tax rate and provides the incentive to actually go out and earn more without losing their base. And then the higher your earnings, the higher your tax rate becomes. And at some point you become financially independent.”

Similar ideas are being looked at by other countries. Switzerland is set to vote on providing a guaranteed national income for all residents, while Finland is working on a proposal for a tax-free income supplement for all its citizens.

CCTB, AFETC: Net & Working Income Канада

Working for yourself might seem like the ideal situation to a number of people, but when it comes to your calculating your taxes, figuring out if and how to claim certain business-related expenses when reporting your income might leave you scratching your head.

If you have more than one source of self-employed income, separating your different kinds of self-employment income and expenses by type is a great place to start. According to the Canada Revenue Agency, you may have self-employment income from a business, profession, commissions, farming or fishing.

Self-Employment Income: Beyond Business Income

According to the CRA, business income includes income from any activity you carry out for profit or with reasonable expectation of profit. This includes a profession, calling, trade, manufacturing endeavour, an undertaking of any kind, as well as a venture or concern in the nature of trade.

The key here is that there has to be an expectation of profit. In other words, not making a profit when you first start is not an issue, but you must strive to make a profit. It is not acceptable to go on for years losing money just to get a tax exemption.

Sole Proprietorships, Partnerships and Corporations

There are three basic forms of business: sole proprietorships, partnerships and corporations. There are also hybrids of these forms.

Self-employed income only arises out of sole proprietorships and partnerships. Corporations are separate legal entities that have a life separate from the individual shareholders and file their own taxes apart from the corporation’s individual owners.

On the other hand, sole proprietorships and partnerships are not separate from the owners; the income is attributed to the individuals.


Unique Types of Business Operations

The CRA has information for sole proprietorships or partnerships involved in unique types of business operations. If you are a farmer or fisherman, or if you run an at-home daycare, you should note the CRA’s special instructions for business claims that involve these activities. If your income is from a property, look for special instructions relating to rental income too.

Filling in the Tax Form

Report your self-employment income on separate lines for each source by entering your gross income and net income in lines 135 to 143 of your income tax and benefit return. These amounts are calculated by using the T2125 Statement of Business Activities form. Your gross income is what you have earned before any expenses are deducted. Your net income is what is left over after deducting expenses.

Expenses that qualify as deductions are those that you incurred to earn the revenue from self-employment income. Expenses that do not contribute to earning the related self-employed income cannot be deducted. In other words, you must be able to justify that the expense was necessary to earn your self-employment revenue.

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Your Canada Child Tax Benefit

    Simon Clark 3 years ago Views:

1 Your Canada Child Tax Benefit Including related provincial and territorial child benefits and credits For the period from July 2003 to June 2004 T4114(E) Rev. 03

2 The National Child Benefit (NCB) is a joint initiative of the federal, provincial, and territorial governments. This initiative is designed to:! help prevent and reduce the depth of child poverty;! ensure that families will always be better off as a result of parents working; and! reduce overlap and duplication of government programs and services. For more information, visit the NCB Web site at Visually impaired persons can get our publications in braille, large print, or etext (computer diskette), or on audio cassette by visiting our Web site at or by calling weekdays from 8:15 a.m. to 5:00 p.m. (Eastern Time). La version française de cette publication est intitulée Votre prestation fiscale canadienne pour enfants.

3 Table of contents Page Introduction. 4 What is the Canada Child Tax Benefit. 4 Can you get the CCTB. 5 When should you apply. 7 How do you apply. 7 What happens after you apply. 8 How do we calculate your benefit. 9 When do we pay your benefit? When do we recalculate your benefit? When should you contact us? Did the number of children in your care change? Are you moving? Has your marital status changed? Has a CCTB recipient died? Other changes Related provincial and territorial programs administered by the CCRA Alberta Family Employment Tax Credit BC Family Bonus New Brunswick Child Tax Benefit Newfoundland and Labrador Child Benefit Northwest Territories Child Benefit Nova Scotia Child Benefit Nunavut Child Benefit Saskatchewan Child Benefit Yukon Child Benefit Tax office addresses Do you need more information?


4 Introduction T his pamphlet explains who is eligible for the Canada Child Tax Benefit, how you apply for it, when you get it, and how we calculate it for the period July 2003 June It also gives details about provincial and territorial child benefit and credit programs administered by the Canada Customs and Revenue Agency (CCRA). What is the Canada Child Tax Benefit (CCTB)? T he CCTB is a non-taxable amount paid monthly to help eligible families with the cost of raising children under the age of 18. Included in the CCTB is the National Child Benefit Supplement (NCBS), a monthly benefit for low-income families with children. The NCBS is the Government of Canada s contribution to the National Child Benefit (NCB), a joint initiative of federal, provincial, and territorial governments. As part of the NCB, certain provinces and territories also provide complementary benefits and services for children in low-income families, such as child benefits, earned income supplements, and supplementary health benefits, as well as child care, children-at-risk, and early childhood services. Under proposed changes, a new supplement, the Child Disability Benefit (CDB), will be included with CCTB payments beginning in March The CDB will be paid to families with children who have a severe and prolonged physical or mental impairment. See page 11 for details. 4

5 Can you get the CCTB? T o get the CCTB, all the following conditions must be met. 1) You must live with the child, and the child must be under the age of 18. 2) You must be the person who is primarily responsible for the care and upbringing of the child. This means you are responsible for such things as supervising the child s daily activities and needs, making sure the child s medical needs are met, and arranging for child care when necessary. If there is a female parent who lives with the child, we usually consider her to be this person. However, if the female parent does not live with the child, it could be the father, a grandparent, or a guardian. 3) You must be a resident of Canada. We consider you to be a resident of Canada when you establish sufficient residential ties in Canada. 4) You or your spouse or common-law partner (defined on page 6) must be: a Canadian citizen; a permanent resident (as defined in the Immigration and Refugee Protection Act); a protected person (as defined in the Immigration and Refugee Protection Act); or a temporary resident (as defined in the Immigration and Refugee Protection Act) who has lived in Canada throughout the previous 18 months. See How do we calculate your benefit? on page 9 for information about other conditions that will determine the amount of your benefit. 5

6 Children s Special Allowances We pay Children s Special Allowances for children under the age of 18 who are under the care of a government department, agency, or institution. You cannot receive the CCTB for a child for any month in which Children s Special Allowances are payable for that child. Spouse You have a spouse when you are legally married. You are separated if you have been living apart from your spouse for a period of 90 days or more because of a breakdown in your relationship and you have not reconciled. Common-law partner You have a common-law partner and are living common law if you live and have a relationship with a person of the same or opposite sex who is not your spouse, and any of the following applies. He or she:! is the natural or adoptive parent of your child; or! has been living and having a relationship with you for at least 12 continuous months (include any period that you were separated for less than 90 days because of a breakdown in the relationship); or! lived with you previously as your spouse or common-law partner. Under proposed changes, this last condition will no longer apply to 2001 and later years. You are separated if you have been living apart from your common-law partner for a period of 90 days or more because of a breakdown in your relationship and you have not reconciled. 6

7 When should you apply? Y ou should apply for the CCTB as soon as possible after:! your child is born;! a child starts to live with you; or! you become a resident of Canada. You should not delay applying because we make retroactive payments for up to 11 months from the month we receive your application. However, if circumstances beyond your control prevented you from sending us your application on time, you can ask for an extension by attaching a note to your application or writing to your tax office. You will find the tax office addresses on page 23. Note If you are eligible for the CCTB, you should apply even if you think you will not be entitled to receive it based on your current family net income. We recalculate your entitlement every July based on your family net income for the previous year. How do you apply? T o apply for the CCTB, complete Form RC66, Canada Child Tax Benefit Application. Depending on your immigration and residency status, you may also have to complete the schedule Status in Canada/Statement of Income. You need to attach proof of birth for your child to your application if we have not previously paid CCTB to anyone for this child, and your child was born outside Canada or your child is one year of age or older. 7

8 If you and your spouse or common-law partner were residents of Canada for any part of 2002, you must both file a 2002 return before we can calculate your benefit. To continue getting the CCTB, you both have to file a return every year you are residents of Canada, even if you have no income to report. If your spouse or common-law partner is a non-resident of Canada, you must complete Form CTB9, Canada Child Tax Benefit Statement of Income for each year he or she is a non-resident of Canada. Note In cases of separation or divorce, it is possible that both parents share more or less equally in the care and upbringing of a child. If each parent wants to apply for CCTB benefits for alternating six-month periods, attach a note to the application to clearly indicate the request. Both parents must sign the note and application. If you have questions, call What happens after you apply? Y ou can expect to hear from us before the end of the second month after we get your application. For example, if we get your application in August, you can expect to hear from us before the end of October. If your application is not complete, we will ask for the missing information. This will delay processing your application. After we process your application, we will send you a Canada Child Tax Benefit Notice. It will tell how much you will get, if any, and what information we used to calculate the amount. 8

9 We may review your situation at a later date to confirm that the information you gave us has not changed. Note Keep your Canada Child Tax Benefit Notice in case you need to refer to it when you contact us. You may also have to provide information from your notice to other federal, provincial, or territorial government departments. How do we calculate your benefit? T he CCTB combines a basic benefit, a National Child Benefit Supplement (NCBS), and under proposed changes, a Child Disability Benefit supplement. For the period July 2003 to June 2004, we calculate your benefit based on:! the number of children you have, and their ages;! your province or territory of residence;! your family net income for 2002;! your or your spouse or common-law partner s claim for child care expenses for 2002; and! under proposed changes, your child s eligibility for the Child Disability Benefit. See page 11 for details. Family net income Family net income is your net income added to the net income of your spouse or common-law partner, if you have one. Family net income does not include your child s net income. Net income is the amount on line 236 of a person s return. 9

10 If you or your spouse or common-law partner were non-residents of Canada for part or all of the year, family net income includes your or your spouse or common-law partner s income for any part of the year you were not residents of Canada. Child and family benefits online calculator You can use our new online service to get an estimate of your child and family benefits by visiting our Web site at Basic benefit We calculate the basic benefit as described below:! $97.41 per month for each child under the age of 18 (if you live in Alberta, see the note below);! an additional $6.83 per month for your third and each additional child; and! an additional $19.33 per month for each child under the age of seven. This amount is reduced by 25% of any amount you or your spouse or common-law partner claimed for child care expenses for We reduce the basic benefit if your family net income is more than $33,487. For a family with one child, the reduction is 2.5% of the amount of family net income that is more than $33,487. For families with two or more children, the reduction is 5%. Note The Alberta provincial government has chosen to vary the amount of the basic benefit their residents get. The basic monthly benefit is:! $89.25 for children under 7;! $95.25 for children 7 to 11;! $ for children 12 to 15; and! $ for children 16 or

11 National Child Benefit Supplement (NCBS) The NCBS amounts are:! $ per month for the first child;! $ per month for the second child; and! $98.00 per month for each additional child. The NCBS will be reduced by a percentage of family net income that is more than $21,529. For a family with one child, the reduction is 12.2% of the amount of family net income that is more than $21,529; for a family with two children, the reduction is 22.7%; and for families with three or more children, the reduction is 32.6%. Note If you are on social assistance, the NCBS may affect the amount of your social assistance payments. Many provinces and territories will consider the NCBS you get as income and will adjust your basic social assistance by this amount. Others may adjust their basic social assistance rates by using the maximum NCBS amount. Child Disability Benefit Under proposed changes, families with low or modest incomes with children who qualify for the disability amount are eligible to receive a Child Disability Benefit (CDB) supplement with their CCTB. A child qualifies for the disability amount when we have approved Form T2201, Disability Tax Credit Certificate, for that child. For families with children who qualify for the disability amount, the CDB is calculated automatically. Families will continue to be able to claim the disability amount and corresponding supplement on their return for qualifying children. For more information on the disability amount, visit our Web site at or see the T.I.P.S. (Tax Information Phone Service) and T.I.P.S. Online section on the back cover of this pamphlet. 11

12 The first CDB payments will be included with the March 2004 CCTB payments. Eligible families will receive a retroactive payment for the July 2003 to March 2004 period. The CDB will provide up to a maximum of $ per month to families with an eligible child with a qualifying disability based on family net income. For more information about the CDB, visit our Web site at or call When do we pay your benefit? W e generally pay your benefit on the 20th of each month. However, if your monthly entitlement is less than $10, we will make only one payment to cover the period July 2003 to June 2004, on July 18, If you haven t received your payment by the 20th of any month, please wait five working days before calling us. Direct deposit You can have your CCTB payments deposited directly into your account at a financial institution. To start direct deposit, complete the Direct deposit section on Form RC66, Canada Child Tax Benefit Application, or send us a completed Form T1-DD(1), Direct Deposit Request Individuals. To get Form T1-DD(1), visit our Web site at or call

13 When do we recalculate your benefit? W e will recalculate your benefit and send you a Canada Child Tax Benefit Notice showing our revised calculation:! every July based on the returns that you and your spouse or common-law partner filed for the previous year;! after each reassessment of either your or your spouse or common-law partner s return that affects the calculation of your benefit;! after a child for whom you receive the CCTB turns 18 (the last payment you will receive will be for the month of his or her birthday); and! after you tell us about changes to your situation that could affect your benefit (see the next section). When should you contact us? A fter you have applied for the CCTB, you should let us know as soon as possible of certain changes, as well as the date they happened or will happen. This section explains how you should tell us about these changes. Note For confidentiality reasons, we can only discuss a file with the person who receives the CCTB. However, we can speak with someone else if the CCTB recipient sends us written permission naming the person they would like us to deal with. 13

14 Did the number of children in your care change? If your child is born or a child starts to live with you, you will need to apply for the CCTB for that child. For details, see How do you apply? on page 7. If a child for whom you were receiving the benefit is no longer in your care, stops living with you, or dies, call to let us know. Are you moving? If you move, be sure to let us know. Otherwise, your payments may stop, whether you receive them by cheque or by direct deposit. To change your address, use our online service at or call Has your marital status changed? If your marital status changes, be sure to let us know, as this may affect the amount of CCTB to which you are entitled. Complete Form RC65, Marital Status Change, or tell us in a letter of your new status and the date of the change. If you are now married or living common law, also include your spouse or common-law partner s name, address, and social insurance number. You and your spouse or common-law partner must sign the form or letter. Send the form or letter to one of the tax offices listed on page 23. Has a CCTB recipient died? If a CCTB recipient dies, the next of kin or the estate should inform us in writing. Someone else may be eligible to get the benefits for the child. Send the letter to one of the tax offices listed on page

15 Other changes Call to tell us:! if your or your spouse or common-law partner s immigration or residency status changes; or! if any of the personal information, such as marital status or child information, shown on your Canada Child Tax Benefit Notice is incorrect. Direct deposit If you get your payments by direct deposit and your banking information changes, send us a completed Form T1-DD(1), Direct Deposit Request Individuals. To get Form T1-DD(1), visit our Web site at or call Related provincial and territorial programs administered by the CCRA T he CCRA administers the following provincial and territorial child benefit and credit programs:! Alberta Family Employment Tax Credit;! BC Family Bonus;! New Brunswick Child Tax Benefit;! Newfoundland and Labrador Child Benefit;! Northwest Territories Child Benefit;! Nova Scotia Child Benefit;! Nunavut Child Benefit;! Saskatchewan Child Benefit; and! Yukon Child Benefit. 15

16 You do not need to apply separately for these benefits. We use the information from your CCTB application to determine your eligibility for these programs. If you are eligible, the amount of your payments will be calculated based on information from the tax returns you and your spouse or common-law partner file. If you use the direct deposit service for your CCTB payments, we will deposit payments from these programs into the same account. Note Earned income and working income used in the calculation of certain provincial and territorial benefits includes income from employment, self-employment, training allowances, scholarships, research grants, and disability payments received under the Canada Pension Plan and the Quebec Pension Plan. If you live in Quebec, we will automatically send all information needed for the Quebec family allowance to the Régie des rentes du Québec. We will send this information whether or not you are entitled to the CCTB. If you live in Ontario, we will automatically send the information needed for the Ontario Child Care Supplement for Working Families to the Ontario Ministry of Finance. Alberta Family Employment Tax Credit The Alberta Family Employment Tax Credit is a non-taxable amount paid to families with working income that have children under the age of

17 You may be entitled to receive whichever of the following three amounts is the least:! $500 ($41.66 per month) for each child under age 18;! $1,000 ($83.33 per month); or! 8% of your family s working income that is more than $6,500. The credit is reduced by 4% of the amount of family net income that is more than $25,000. Payments are made in July 2003 and January This program is fully funded by the Province of Alberta. Payments are issued separately from the CCTB. For more information, call BC Family Bonus The BC Family Bonus program includes the basic Family Bonus and the BC Earned Income Benefit. This program provides non-taxable amounts paid monthly to help low- and modest-income families with the cost of raising children under the age of 18. Benefits are combined with the CCTB into a single monthly payment. Basic Family Bonus For families with net income below $20,500, the basic Family Bonus provides the following amounts:! $1.58 per month for the first child;! $17.75 per month for the second child; and! $23.83 per month for each additional child. 17

18 Families whose net income is $20,500 or more may also be entitled to a basic Family Bonus amount depending on their net income and the number of children they have. BC Earned Income Benefit Families whose earned income is more than $3,750 may also be entitled to the following:! up to $50.41 per month for the first child;! up to $33.75 per month for the second child; and! up to $27.50 per month for each additional child. Families whose net income is more than $20,921 may get part of the earned income benefit. This program is fully funded by the Province of British Columbia. For more information, call New Brunswick Child Tax Benefit The New Brunswick Child Tax Benefit (NBCTB) is a non-taxable amount paid monthly to qualifying families with children under the age of 18. The New Brunswick Working Income Supplement (NBWIS) is an additional benefit paid to qualifying families with earned income who have children under the age of 18. Benefits are combined with the CCTB into a single monthly payment. Under the NBCTB, you may be entitled to a basic benefit of $20.83 per month for each child. The amount of the basic benefit is reduced if your family net income is more than $20,

19 The NBWIS is an additional benefit of up to $20.83 per month. It is phased in once family earned income is more than $3,750 and reaches the maximum benefit when family earned income is $10,000. Families with net income between $20,921 and $25,921 may get part of the supplement. This program is fully funded by the Province of New Brunswick. For more information, call Newfoundland and Labrador Child Benefit The Newfoundland and Labrador Child Benefit (NLCB) is a non-taxable amount paid monthly to help low-income families with the cost of raising children under the age of 18. The Mother Baby Nutrition Supplement (MBNS) is an additional benefit paid to qualifying families who have children under the age of one. Benefits are combined with the CCTB into a single monthly payment. Under the NLCB, you may be entitled to a benefit of:! $18 per month for the first child;! $26 per month for the second child;! $28 per month for the third child; and! $30 per month for each additional child. Families with net income between $17,397 and $22,397 may get part of the benefit. Under the MBNS, you may be entitled to a benefit of $45 per month for each child under the age of one if your family net income is under $22,

20 This program is fully funded by the Province of Newfoundland and Labrador. For more information, call Northwest Territories Child Benefit The Northwest Territories Child Benefit (NWTCB) is a non-taxable amount paid monthly to qualifying families with children under the age of 18. The Territorial Worker s Supplement, part of the NWTCB program, is an additional benefit paid to qualifying families with working income who have children under the age of 18. Benefits are combined with the CCTB into a single monthly payment. Under the NWTCB, you may be entitled to a basic benefit of $27.50 per month for each child. Families who have earned income of more than $3,750 may also get the Territorial Worker s Supplement of up to $22.91 per month for one child, and up to $29.16 per month for two or more children. Families with net incomes above $20,921 may get part of the benefit. This program is fully funded by the Northwest Territories. For more information, call Nova Scotia Child Benefit The Nova Scotia Child Benefit (NSCB) is a non-taxable amount paid monthly to help low- and modest-income families with the cost of raising children under the age of 18. Benefits are combined with the CCTB into a single monthly payment. 20

21 Under the NSCB, you may be entitled to a benefit of:! $37.08 per month for the first child;! $53.75 per month for the second child; and! $60.00 per month for each additional child. Families with net income between $16,000 and $20,921 may get part of the benefit. This program is fully funded by the Province of Nova Scotia. For more information, call Nunavut Child Benefit The Nunavut Child Benefit (NUCB) is a non-taxable amount paid monthly to qualifying families with children under the age of 18. The Territorial Worker s Supplement, part of the NUCB program, is an additional benefit paid to qualifying families with working income who have children under the age of 18. Benefits are combined with the CCTB into a single monthly payment. Under the NUCB, you may be entitled to a basic benefit of $27.50 per month for each child. Families who have earned income of more than $3,750 may also get the Territorial Worker s Supplement of up to $22.91 per month for one child, and up to $29.16 per month for two or more children. Families with net income above $20,921 may get part of the benefit. This program is fully funded by Nunavut. For more information, call

22 Government of Saskatchewan Saskatchewan Child Benefit The Saskatchewan Child Benefit (SCB) is a non-taxable amount paid monthly to help lower-income families with the cost of raising children under the age of 18. Benefits are combined with the CCTB into a single monthly payment. Under the SCB, you may be entitled to a benefit of $42 per year for the first child, $255 per year for the second child, and $330 per year for each additional child. Families with net income above $15,921 may get part of the benefit. This program is fully funded by the Province of Saskatchewan. For families living on a reserve, benefits are funded by Indian and Northern Affairs Canada. For more information, call Yukon Child Benefit The Yukon Child Benefit (YCB) is a non-taxable amount paid monthly to help low- and modest-income families with the cost of raising children under the age of 18. Benefits are combined with the CCTB into a single monthly payment. Under the YCB, you may be entitled to a benefit of $25 per month for each child. Families with net income above $16,700 may get part of the benefit. This program is funded by the Yukon with a contribution from Indian and Northern Affairs Canada on behalf of Status Indian children. For more information, call

23 Tax office addresses I f you need to send us a letter, use one of the addresses shown below: St. John s Tax Centre PO Box 12071, Stn A St. John s NL A1B 3Z1 Summerside Tax Centre Pope Road Summerside PE C1N 5Z7 Jonquière Tax Centre PO Box 1900, Stn LCD Jonquière QC G7S 5J1 Shawinigan-Sud Tax Centre PO Box 3000, Stn Main Shawinigan-Sud QC G9N 7S6 Sudbury Tax Services Office PO Box 20000, Stn A Sudbury ON P3A 5C1 Winnipeg Tax Centre PO Box 14000, Stn Main Winnipeg MB R3C 3M2 Surrey Tax Centre 9755 King George Highway Surrey BC V3T 5E1 23

How would a guaranteed annual income work in Canada?

The Liberal government could be taking a hard look at the possibility of a guaranteed annual income after it invited one of Canada’s leading experts on the subject to speak at a pre-budget hearing in Ottawa on Thursday.

University of Manitoba health economist Evelyn Forget spoke in the House of Commons about the benefits of a guaranteed annual income (GAI), or basic annual income, and how it could replace the existing, often complicated, patchwork of social assistance programs.

What is a guaranteed annual income?

Forget told Global News in a phone interview Friday the a GAI would be in the neighbourhood of $18,000 a year for every Canadian.

“If people have no income from any other source you get a certain agreed upon level and then as wage income increases, if you go out for example and earn $100, your benefit declines by $50 so you get to keep half of anything you earn,” she said.

WATCH: How a guaranteed minimum income could reduce poverty

Forget said the challenge is finding the right dollar figure that will raise people out of extreme poverty while maintaining a financial incentive to work.

Who would qualify for the guaranteed annual income?

She said that unlike provincial welfare programs a GAI model would be available to both the working poor as well as people on assistance.

“If you’re working a minimum wage at $11 an hour or whatever it is in your province you would come in well below the limit and you would receive supplementation under this scheme,” Forget said. “It creates a work incentive to ensure that people who work are always better off than if they didn’t work.”

Has the plan been implemented anywhere?

Forget conducted research on the idea, a program called Mincome, that took place between 1974 and 1978 in Dauphin, Man., and Winnipeg that provided a guaranteed minimum income for some of its residents. She said the benefits of a GAI include lower poverty rates, less hospital visits and increased high school completion rates.

However, a 2015 report from the Fraser Institute suggested while the idea is appealing, it would not work in Canada. It suggested one of the biggest hurdles would be getting all levels of government on board with a single program instead of the number of social assistance programs that exist today.

The idea seems to be gaining traction at all levels of government across the country. Quebec Premier Philippe Couillard appointed a cabinet committee in January to look at creating a GAI for the province, while mayors from Calgary and Edmonton have supported the idea and Green Party Leader Elizabeth May included it in her party platform in the last federal election.

While the Liberals did not make a guaranteed annual income an election promise they included it among its policy resolutions in a mandate letter to Families, Children and Social Development Minister Jean-Yves Duclos.

Glen Hodgson, chief economist with Conference Board of Canada, likes the idea of a guaranteed annual income as it has to the potential to reduce bureaucratic costs.

“I think there is a chance to actually streamline administration, reduce massive administrative costs being felt by the feds, provinces and cities,” he said.

Hodgson says under the current employment insurance system once a person applies for welfare, if they find a job the quickly begin losing benefits.

“If they take the initiative and go out and find a job we penalize them by taking big chunks of their other income,” said Hodgson. “The attractiveness of the guaranteed income model is you can have a very low marginal tax rate and provides the incentive to actually go out and earn more without losing their base. And then the higher your earnings, the higher your tax rate becomes. And at some point you become financially independent.”

Similar ideas are being looked at by other countries. Switzerland is set to vote on providing a guaranteed national income for all residents, while Finland is working on a proposal for a tax-free income supplement for all its citizens.

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