Performance figures for each account are calculated using time weighted rate of returns on a daily basis. The Composite returns are calculated based on the asset-weighted monthly composite constituents based on beginning of month asset mix and include the reinvestment of all earnings as of the payment date. Composite returns are as follows:

John Nicola Answers Your Tax Questions: Are there taxes that will not be changed?

Watch Canadian Tax Insights: How High Net Worth Investors Should Navigate Today’s Taxation Environment here.

In his webinar on November 2, 2021, CEO & Chairman, John Nicola, provided exclusive insight into Canada’s taxation environment and explained how to optimize your tax planning strategy in light of current regulations and took the time to answer viewer questions. Each week, we will publish his answers to your questions.


Are there taxes that will not be changed? For example, Principal Residence Exemption? Income splitting of retirement benefits?


John’s Response:

Again, I’m looking at this from a political perspective. The Liberals and the NDP want to pick their battles wisely. Given how many people benefit from income splitting at retirement, I don’t think the parties want to pick on millions of citizens by telling them they will take away one of their more valuable retirement benefits. Now they could make exceptions and say income splitting is allowed until you reach over a hundred thousand a year, then it all has to be allocated to one person. This way, they keep those who are not splitting more than a hundred thousand happy.

In terms of housing, it’s much the same. The government could say a homeowner gets a tax-free capital gain of a million dollars when you move your home from A to B to C, sell it, or pass it to your children, but if it’s five million dollars, you pay tax on the amount over a million dollars. This is essentially what they are doing with the banks where they charge a surtax on profits over a billion dollars. This eliminates worry from small Canadian banks and credit unions about being a financial services tax: it’s only a big bank and life insurance company tax.


This material contains the current opinions of the author and such opinions are subject to change without notice. This material is distributed for informational purposes only. Forecasts, estimates, and certain information contained herein are based upon proprietary research and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Nicola Wealth is registered as a Portfolio Manager, Exempt Market Dealer and Investment Fund Manager with the required provincial securities commissions.