Tax Season reminders

Tax slips: Mailing and web posting schedule
First 60-day RRSP contribution guidelines
Upcoming regulatory changes for 2023

Tax slips: Mailing and web posting schedule

Please refer to the chart below for the anticipated dates and methods of delivery. Mailing and web posting dates will be the same unless otherwise indicated.

Please note that these dates are tentative and are subject to change.

First 60-day RRSP contribution guidelines

The Canada Revenue Agency (CRA) deadline for receipt of first 60-day orders is midnight, March 1, 2023.

The processing deadline for trades requesting a first 60-day contribution will be 4:00 pm on March 3, 2023.

Mackenzie follows the industry best practices as outlined by IFIC:

• Contribution receipts will be mailed daily starting January 4, 2023 (excluding PACs and employee/employer GRRSP contributions). GRRSP and PAC contributions processed up to and including March 1, 2023 will be consolidated and issued on the same day.  Duplicate receipts can be retrieved online.
• From March 1 to 4:00 pm ET on March 3, all contributions made into a Mackenzie RRSP will trigger a first 60-day contribution receipt, provided the supporting documentation was received in the dealer’s office on or before the deadline.
• From March 1 to 4:00 pm ET on March 6, contributions made into a Mackenzie Group RRSP will trigger a first 60-day contribution receipt, provided the proper supporting documentation is received. This will allow for situations where the employees’ contribution payments have been made prior to the deadline through their regular payroll deduction but the funds were not released in time by the employer or sponsors payroll programs.
• From March 1 to 4:00 pm ET on March 3, dealers may designate electronic purchases as ‘first 60-day’ via Fundserv by indicating “contribution period = P” on the trade. Fundserv will reject all electronic orders placed as first 60-days (Contribution period = P) after 4:00 pm on March 3, 2023.

Guidelines for issuing contribution receipts under exceptional circumstances after the March 3, 2023 deadline are provided by IFIC on their website at www.ific.ca.

These procedures are not considered an extension to the CRA deadline for contributions.  Rather, they’re intended to allow contributions received by the dealer before the deadline to be directed to Mackenzie for investment accordingly.

Regulatory changes for 2023

Charitable Giving Foundation: increase to minimum grant rate

In January, the minimum grant rate for Mackenzie’s Charitable Giving Program will increase from 4% to 5%.

This change is being made to align with the 2022 Federal Budget, which introduced a disbursement quota (DQ) rate increase from 3.5% to 5% for registered charities. A disbursement quota is the minimum amount a registered charity is required to spend each year on its own charitable activities, or on grants to qualified donees.

Mackenzie will inform donors about change on their 2022 year-end statements, which will be sent in February 2023.

FATCA/CRS: new tax residency confirmation form

In 2022, the Canada Revenue Agency (CRA) released new versions of the Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standard (CRS) guidance with significant changes that come into effect on January 1, 2023.

The changes affect the way that fund managers and dealers handle client name non-registered accounts. Self-certifications must be obtained by dealers at the time of account opening, and US or foreign taxpayer identification numbers (TINs) must be obtained and provided for all reportable accounts.

Fundserv implemented enhancements in May 2022 to align with the new CRA regulations, but for client name non-registered accounts that are opened manually, a new Tax Residency Confirmation form will be required as of January 1, 2023.

The CRA has indicated they’re planning to enforce penalties for non-compliance. This includes a penalty of up to $5,000 ($2,500 for FATCA and $2,500 for CRS) per account for not obtaining a valid self-certification, as well as other penalties associated with failure to provide US or foreign TINs on reportable accounts.

Increased TFSA contribution limit

In 2023, the contribution limit for TFSAs will increase from $6,000 to $6,500 due to indexation.  The total contribution room for an eligible TFSA investor as of 2023 is now $88,000.00.

Cancellation of Saskatchewan Advantage Grant for Education Savings (SAGES)

In its 2022-23 budget, the Government of Saskatchewan announced their intention to cancel SAGES. Employment and Social Development Canada has confirmed that all SAGES held within Registered Education Savings Plans (RESPs) must be converted to income on September 1, 2023.