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:

Have you completed the pre-budget consultations questionnaire the Finance Department has posted?  The government wants your feedback, but are the questions posed relevant?  Notably absent are personal and business tax topics, and the opportunity to provide your thoughts on the effect of long-term debt on the future value of Canadians’ retirement savings.  Perhaps most puzzling is the lack of vision for the future of the world of work and specifically, the role of small businesses in the economic recovery. Contributing to the conversation is, however,  important to bring your “feet-on-the-street” perspective.

When alterations are made to a home to allow a taxpayer or a dependant be more mobile or functional within the home, it’s possible to accomplish a rare, and legal double-dip on the 2020 tax return.  Specifically there are two tax provisions to look to for tax savings.

The right tax structure is critical for post-pandemic economic recovery as fragile, debt-laden governments and businesses alike venture out of crisis towards economic stability.  The Fraser Institute, in a new analysis, makes an interesting case for consumption taxes to minimize the potential damage to economic growth from other forms of taxation.

This tax year might well represent the least expensive one for a while.  While there is some economic good news, the long term forecast for tax rates is grim, given current debt levels.  Two authoritative research papers, one from the past and one more recent, tell us why paying attention to tax planning and savings this year will help Canadians manage future tax risk.

Are you frustrated with long wait times for CRA responses or unsure if the answers you have been given are right? Although the CRA has recently hired a third party to give “general” answers about pandemic supports on the T1, professionals need to be precise when filing. Having fast, authoritative access to tax questions helps down the line at tax audit time, too. That’s the role of Evergreen Explanatory Notes, available 24/7, in your professional toolkit. 

Now is the right time to consider a career in professional bookkeeping, as small business owners in Canada need your help to navigate the repercussions of the pandemic and its fallout. Meet the high demand for qualified practitioners to take the burden of bookkeeping and CRA remittances off their shoulders. Become a credentialled bookkeeping services specialist.