Phone:  780.814.7474  *  Toll free:  1.877.814.7474  *  Fax:  780.814.7409  

TAX TIPS, TRAPS... and other financial facts

Willsey Davis will have extended office hours of 8:00 am - 5:00 pm beginning March 1st.  For your convenience the office will remain open during the 12:00 pm - 1:00 pm lunch hour.  These hours will be in effect until April 30th . 

The annual Regional EMS Wine Fair & Auction was held on February 6 , 2015.  We are pleased to have once again been a supporter of this important local fundraising event.

The ACFA Regionale de Grande Prairie Maple Sugar Festival was held on February 28th at Muskoseepi Park.  Once again we are a proud sponsor of this winter festival which promotes the culture and heritage of the francophone community. 


Willsey Davis was an event sponsor for the Rivers of Hope Canada fundraiser banquet in February.  This event was hosted by the Debolt & District Ag. Society and raised funds for the Rivers of Hope Orphanage in Haiti.   


The  3D Charity Hockey tournament is an event that Willsey Davis is pleased to support each year.  The tournament will be held April 30 -  May 2nd at the Coca Cola Centre and will raise funds to help seriously ill students from Kindergarten to Grade 12 in the three Grande Prairie School Districts.   


Willsey Davis & Co. is a continuing sponsor of the Community Foundation of Northwestern Alberta  

Our 2014  personal tax checklist, forms and links are available on the Resources section of our website. Watch your Inbox for our personal tax email which will include the tax checklist and the T183 form which CRA requires to be signed by each tax filer every year.  Also required this year is a signed 2014 Personal Tax Engagement Letter.

The amount of children's fitness expenses you may claim for each child has increased from $500 to $1,000.  

If you spend part of the year in the United States it is important for you to determine how the U.S. tax laws apply to you.   Find out more by reading CRA's Guide P15 by clicking here.   

On October 30, 2014, Prime Minister Stephen Harper announced personal tax changes with respect to families. These changes were passed into law on December 16, 2014.

  • The Family Tax Cut is a new non-refundable credit. Essentially, you get a Federal tax credit intended to simulate the annual Federal tax benefit of income splitting with a lower income spouse to a maximum transfer of $50,000 and a maximum tax benefit of $2,000.

This will start on 2014 personal tax returns.


To be eligible for the credit, you must meet all of the following criteria:

    • be married (including common-law partners) to a Canadian resident at the end of the year;
    • have a child under age 18 who resides with you;
    • not make a pension splitting election (either spouse);
    • file a return (both spouses);
    • be resident in Canada;
    • not become bankrupt in the year; and
    • not be incarcerated for a 90 plus day period in the year.
    • Universal Child Care Benefit (UCCB) payments will be increased by $60 per month for all children under age 18 (so you get $160 per month for children under age 6 and $60 per child age 6 to 17). This is effective January, 2015 but payments will not begin until July, 2015. A Canada Child Benefits Application Form will be required for parents who have not previously completed such a Form to get other benefits, or for those whose situation has changed.
    • The Child Tax Credit (worth $338 per child under age 18 in 2014) will be eliminated in 2015. Instead of a $338 Federal tax credit, the taxpayer will receive $720 ($60 per month as indicated above) in new UCCB payments to be reported by the lower income spouse. Even at a 50% tax rate, the taxpayer will still be ahead. The enhanced portion of the credit for an infirm child will remain available, despite the base credit being eliminated.
    • The annual limit on Child Care Expenses will increase to $8,000 per child under age 7, $5,000 per child age 7 to 16, and $11,000 per disabled child, a bump of $1,000 per child in each category. This will also be effective in 2015.
    • The Fitness Tax Credit doubles in 2014. For eligible expenses of $1,000, a Federal credit of $150 is obtained ($1,000 @ 15% = $150). This credit will become refundable in 2015. "Refundable" means that in situations where less than $150 in tax is assessed, federal taxes will be reduced to $0 and the unused portion of the credit will be refunded to the taxpayer. The Arts Tax Credit remained unchanged.


Action Item: Ensure your children, aged 17 and under, are registered for UCCB.



Individuals who have a severe and prolonged impairment in physical or mental functions may apply for the disability tax credit (DTC). The federal tax credit is valued at over $1,100 (15% x 7,766)in 2014, with the possibility of an additional disability supplement for certain individuals under the age of 18 at the end of the year. Provincial tax credits may also be available.                    


The DTC is a non-refundable tax credit used to reduce income tax payable on an individual's income tax return. All or part of this amount may be transferred to an individual's spouse or common-law partner, or another supporting person.


Being eligible for the DTC can open the door to other federal, provincial, or territorial programs such as the registered disability savings plan, the working income tax benefit, and the child disability benefit.


For individuals that may have been eligible for the DTC for a number of years, but have not applied, taxpayer relief may be an option to access these credits for the prior 10 years.


Action Item: If you think you may be eligible for this generous DTC, contact us to discuss.

An individual can deduct certain expenses they paid to earn employment income if they meet certainconditions including:

  • their employment contract required them to pay the amount; and,
  • they did not receive an allowance for the expenses or the allowance they received is reported as income.

Employees must obtain a signed T2200, Declaration of Conditions of Employment, from their employer to deduct employment expenses from their income.


Eligible employment expenses are quite limited. However, they may include, for example, motor vehicle expenses, supplies, and certain work space in the home if you meet particular criteria. Additional expenses may be available to commissioned salespersons.


Action Item: Obtain a signed Form T2200 from your employer before deducting employment expenses.

 CRA collects amounts owed for not just tax programs, but also for other government programs, including, for example:

  • defaulted Canada Student Loan;
  • Employment Insurance overpayment;
  • Canada Pension Plan overpayment;
  • Old Age Security overpayment;
  • Labour Program receivable; and
  • other Employment and Social Development Canada (ESDC) programs.

On November 1, 2014, CRA provided a general overview of the Government Programs Collection Policy for individuals, businesses and organizations that owe money other than taxes to the Crown.


They noted that amounts owed to the Government of Canada are payable in full without delay although, if a taxpayer cannot pay the total amount or the minimum payment owing on their statement of account immediately, they could contact the Revenue Collections and Client Services Division with respect to making payment arrangements.


CRA also noted that if amounts are not paid voluntarily, CRA may take legal action to:

  • recover amounts from any benefits or other applicable credits they may receive from ESDC;
  • recover from credits the Crown may owe to the taxpayer such as income tax refunds and/or GST/HST credits;
  • garnishee income sources and/or bank accounts; or
  • use any other means under any applicable statutes or law to collect an amount owing.

 Garnishment action allows the Government to intercept funds payable to the taxpayer by a third party, such as a taxpayer's employer, bank, or other sources of income.


Similarly, if any other Federal Government department owes the taxpayer money, a statutory set-off to that department may be made to have all, or part, of that money sent to the department to which the taxpayer is indebted.


Action Item: If you are struggling to pay your Government debts, contact us sooner, rather than later as options may be available.

In an August 8, 2014 Technical Interpretation, CRA reminded taxpayers that an Executor should obtain a Clearance Certificate before distributing property under their control.


The Certificate attests that all amounts payable by the Estate have either been paid or the Minister has accepted security for such amounts. If the Executor distributes the Estate's property without first obtaining a Clearance Certificate, the Executor may be personally liable for amounts that are outstanding to the Government.


The Clearance Certificate protects the Executor only in the above-noted capacity. CRA can still pursue the beneficiaries of the Estate for any unpaid taxes even where a Clearance Certificate is issued.


Action Item: Executors should consider obtaining a Clearance Certificate to avoid personal liability.