Winnipeg accounting firm Compass Tax advises clients to prepare for reduced tax refunds due to change in climate action incentive payments
WINNIPEG, Canada – Compass Accounting, a leading accounting firm based in Winnipeg, Canada, is launching an education campaign to inform clients that, depending on specific circumstances, their tax refunds may be lower than expected this year.
While this may be concerning, the reason is the way the Climate Action Incentive (CAI) payment is made. The Climate Action Incentive is a tax-free amount paid to help individuals and families offset the cost of federal pollution pricing. It is available to residents of Alberta, Saskatchewan, Manitoba and Ontario. It consists of a base amount and a supplement for residents of small communities and rural communities. The reason for this change is that the Government of Canada has changed the way the ACI is paid from a refundable credit claimed annually on individual income tax returns to tax-free quarterly payments made through the system. of services with the first for July 2022.
“A lot of people organize their purchases around their anticipated tax return,” said Karen Kundel of Compass Accounting. “This year, a change made by the government may affect the amount of tax refund a person receives. While we don’t expect anyone to be worse off as a result of this change, given that most people will receive the same amount of money, the lower amount they will receive in tax refunds may come as a surprise. anyone planning for last year’s repayment. This is why it is important for people to be aware of the change so that they can plan accordingly. Anyone who is concerned about this change or would like clarification should contact Compass Accounting, and a member of our team will be happy to answer their questions.
Compass Accounting is a Winnipeg-based Chartered Professional Accountant firm serving clients in many provinces. They strive to help business owners and managers get the most out of their financial reporting, control costs with efficient systems, and comply with tax and government filings. For more information about the company and the services it provides, visit its website at https://www.compass-cpa.com/.
Compass Accounting Winnipeg CPA Accountants
605 Erin Street