Navigating Canada’s Evolving Tax Landscape with Jamie Golombek, FCPA, FCA

On Monday, June 10, the federal government presented their long-awaited proposal for increasing the capital gains inclusion rate. Scheduled to take effect on June 25, this change represents a significant shift in tax policy, the implications of which are not yet fully understood.

When Canadians need help navigating the constantly changing landscape of tax policy, they turn to CPAs like Jamie Golombek, FCPA, FCA.  As the Managing Director of Tax and Estate Planning at CIBC, Jamie is one of the country’s most well-respected tax specialists, with a weekly column in the National Post aptly titled ‘Tax Expert.’ His insights are always in high demand, presenting across the country and, until recently, teaching an MBA course on Personal Finance at the Schulich School of Business at York University.

His mission is simple: to help people understand the Tax Act and make sure they are using all the credits and benefits available to them. In 2023, Jamie was named a Fellow of the profession, the highest distinction that can be bestowed upon a CPA.

‘Some people don’t even know the basics. I'm really trying to educate the average Canadian on the tax changes,” said Jamie. “What do they need to know, and how they can make sure they're getting all the various deductions and credits they're entitled to.”

When asked about the federal government’s proposed changes to capital gains, Jamie said that one of most common questions he receives is about whether or not Canadians should sell their assets, including properties, stocks and incorporated small businesses, before or after the rate change comes into effect.

He says that there are pros and cons to both. Ultimately it comes down to the opportunity cost on a case-by-case basis, and that CPAs are uniquely positioned to help clients make these decisions.

“The questions that [tax planners] are dealing with literally every day is ‘Should I actually do something before June 25?’ Nobody knows what to do. This is something where a CPA is the perfect professional to weigh in,” Jamie said. “A CPA has the tax skills and the understanding to actually give advice on something like this.”

As one of the country’s leading experts on tax policy, Jamie believes that there is room to improve the efficiency of the overall tax system to the benefit of the economy and average Canadians. 

“In my view, the government could get rid of many of these non-refundable tax credits. There are credits for so many different things, and the rules are complicated, and impossible for the average person to keep track of. I would recommend simplifying the personal tax system.

“Second, personal income tax rates are too high. Psychologically, once you’re over 50%, people have a disincentive to work, and it’s just not productive.”

‘Thirdly, I would also say I’m not sure that we have the right tax mix because there is just too much reliance on personal tax and not enough on sales tax. The government has lowered the HST, and I’m not sure that was the best decision, because ultimately, they could raise a lot of money by upping the HST.’

Jamie said that his career would not be possible without the designation, and the credibility it brings to any tax professional.

‘It's critical to have the designation, as it gives me the credibility both internally to my entire team and ultimately the value perceived by the client. Because at the end of the day, they want someone who has had the rigor of the professional training, partakes in annual continuing education requirements to make sure that they are on top of it all, and ultimately has professional liability from misconduct. I could not do what I do today without a CPA designation.’

For future CPAs looking to follow in his footsteps, Jamie had this advice.

‘Going into tax, you’re guaranteed a job for life. Taxes will never go away. And it’s getting more complicated all the time, and there is a real shortage of people doing tax full time. So, whether you like personal tax or corporate tax, whether you want to work at a big company or in an accounting firm - if you're willing to work hard, you will not be without work.’

But beyond job security, Jamie reiterated the value that tax professionals bring to society.

‘As CPAs, we can really help clients understand the tax system. At the end of the day, it’s about helping people.’