WINNIPEG, Canada – Compass Accounting, a leading accountancy firm based in Winnipeg, Canada, is embarking on an education campaign to make their customers aware that depending on specific circumstances, their tax refunds may be lower than anticipated this year.
Although this might be cause for concern, the reason for this is due to the way in which the Climate Action Incentive Payment (CAI) is being made. The Climate Action Incentive Payment is a tax-free amount paid to help individuals and families offset the cost of the federal pollution pricing. It is available to residents of Alberta, Saskatchewan, Manitoba, and Ontario. It consists of a basic amount and a supplement for residents of small and rural communities. The reason for the change is that the Government of Canada has altered the payment method for the CAI from the past system of being a refundable credit claimed annually on personal income tax returns to quarterly tax-free payments made through the benefits system with the first scheduled for July 2022.
“Many people organize their purchases based on their anticipated tax return,” said Karen Kundel of Compass Accounting. “This year, a change that the government has made may affect the amount of tax refund that a person receives. Although we do not anticipate that anyone will be worse off as a result of that change, as most people will receive the same amount of money, the smaller amount they receive as a tax refund could come as a surprise to anyone making plans based on their last year’s refund. That is why it is important that people are aware of the change so that they can plan accordingly. Anyone who is worried about this change or wants to seek clarification should contact Compass Accounting, and a member of our team will happily answer their questions.”
Compass Accounting is a Chartered Professional Accountant firm located in Winnipeg and serving clients in many provinces. They focus on helping business owners and managers get the most from their financial reports, keeping costs in check with efficient systems, and staying compliant with tax and government filings.