The Personal Financial Planner's Manual™
Summary of Contents of Update 58


September 2009

Section-Chapter
3-3. Taxation of Employees
 

On June 11, 2009, CRA released Income Tax Technical News No. 40, which describes CRA’s administrative policies for taxable employment benefits. This chapter has been updated for the changes to the taxation of:

  • overtime meals and allowances provided to employees;
  • loyalty programs;
  • employer provided motor vehicles required to be taken home at night;
  • non-cash gifts and non-cash awards; and
  • surface transit passes provided to family members of transit employees.
4-2.

Portfolio Design
 

This Chapter has been removed temporarily as the Manual is reorganized. It will be placed at the end of the Section after the description of the various investment products when it makes more sense to consider portfolios.
 

4-2. Guaranteed, Interest-Producing Investments
 

This Chapter has been rewritten to be more readable and the calculations have been broken down into stages so they are easier to follow. The number of this chapter has been changed from 4-3 to 4-2.
 

4-3. Bonds & Debentures
 

This Chapter has been rewritten to be more readable and the calculations have been broken down into stages so they are easier to follow. The number of this chapter has been changed from 4-4 to 4-3.
 

4-4. Common & Preferred Shares
 

This Chapter has been rewritten to be more readable and the calculations have been broken down into stages so they are easier to follow. The number of this chapter has been changed from 4-5 to 4-4. Information has been added on rate reset preferred shares.
 

5-4. Registered Education Savings Plans
 

Material has been added on withdrawing assisted contributions from an RESP, as other than educational assistance payments. Material has been added on withdrawing funds from an RESP to pay for a child’s education. The examples have also been updated.
 

7-3. Registered Retirement Savings Plans and Registered Retirement Income Funds
 

This Chapter has been rewritten to be more readable and the calculations have been broken down into stages so they are easier to follow.
 

7-4. Registered Pension Plans
 

This Chapter has been rewritten to be more readable and the calculations have been broken down into stages so they are easier to follow.
 

7-6. Pension Adjustments, Locked-In Funds, & Transfers between Registered Plans
 

This Chapter has been rewritten to be more readable and the calculations have been broken down into stages so they are easier to follow. Material has been added on the alternatives for withdrawing funds from locked-in accounts regulated by the federal Pension Benefits Standards Act, 1985. These alternatives include two conditions of financial hardship and the small balance provision.
9-1. Quick Reference
 

The Chapter has been updated for the 3rd quarter prescribed interest rates, OAS benefits, and the latest statistics on the Consumer Price Index.

In particular, the Federal Budget of January 28, 2009, increased:

  • the two lowest personal income tax brackets;
  • the basic personal amount, the spousal and common-law partner amount, and the eligible dependant amount; and
  • the amount for the age credit.

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