News Room

Finance Canada: No More Spring Budgets

Finance Canada announced on October 7 that Canada’s federal budgets will be brought down in the fall starting with the November 4, 2025 event; a significant departure from the spring schedule (February, March or April) that has been the cycle for several decades. This is going to affect many other events as we know them, and in the annual government spending approval cycle. There will also be a new budget process for capital vs. operational expenses. Here’s what you need to know:

Surrogacy Costs:  Parents to Receive Tax Credits

Paying a surrogate to bear a child is illegal in Canada.  Yet, the Nova Scotia government recently introduced a new refundable tax credit for surrogacy-related medical expenses, a first in Canada.  The federal government, too, proposed a similar provision in the April 7 Federal Budget, to provide for tax relief for reimbursements paid to the “patient”, the surrogate.

Interest Deductibility: Building Acquisitions

At a time when interest rates are rising, a more common question from investors in real estate may concern interest deductibility.  When is the interest paid on a loan to finance a building or its construction, written off as an operating expense and when must it be capitalized? Most people are unaware of the latter option.

March 2022 Poll: Thumbs Up for RRSPs

Knowledge Bureau Report asked its national audience “Do you believe the RRSP is still a good investment for pre-retirees who work after age 60?” last month and the results were surprising, given all the rhetoric around the use of RRSPs. A full majority – 74% said yes, but with lots of qualifications.  Here’s why:

The Pier Report

At year-end, the T4 summary is completed and sent to the CRA.  The T4 forms are generated and sent to the employees before the end of February in the year following the payroll year.  If the employer is late in completing the T slip summary and remitting to the CRA, depending upon the number of slips to be completed, an employer could see a penalty of anywhere from $10 to $7,500.

Special Report on the April 7, 2022 Federal Budget

The Federal Budget of April 7, 2022 represents a much brighter economic outlook for Canada and contains a sprinkling of tax provisions that most importantly did not raise any tax rates or impose new capital gains taxes.  However, there is a warning that this could be on the horizon as early as this fall.

Breaking News:  Federal Budget April 7

The Finance Department has announced that the Federal Budget will be on April 7, 2022.  Your Knowledge Bureau Special Budget Report team will provide full details.  Then join us comprehensive analysis and CE Credits with Evelyn Jacks and the Knowledge Bureau Faculty at the May 18 Virtual CE Summit for the effect of budget and economic change on Retirement and Estate Planning.   
 
 
 
Knowledge Bureau Poll Question

Do you believe SimpleFile, CRA’s newly revamped automated tax system, will help more Canadians access tax benefits and comply with the tax system?

  • Yes
    4 votes
    10.81%
  • No
    33 votes
    89.19%