Fall Federal Budget: Will Spending Be Cut?

Canada has historically presented an annual budget since Confederation in 1867, even through periods like World Wars and the Great Depression, but we have recently experienced the longest period without a full federal budget in our history. By the time the next one is brought down, expected in October 2025, it will have been 18 months since the controversial April 2024 budget which introduced the doomed capital gains inclusion rate hikes. What can we expect?

The pandemic has changed the financial picture for a lot of Canadians. The good news?  Changes in income levels can produce tax savings few people have thought about. Reduced income, for example, may change the taxpayer’s requirement to make their December 15 instalment payment.  Or they may qualify now to collect tax benefits they would otherwise not be entitled to. Check out this true-to-life example:

 “There is nothing government can give you that it hasn’t taken from you in the first place.”- Sir Winston Churchill, Prime Minister of the UK 1940-1945 and 1951-1955.

Be on the forefront of a massive shift in your business: learn how to transform your services to the highly personalized, digital solutions your clients now demand. It's not too late to join advisors from coast to coast in the unique virtual conference and networking experience we have created for you at the 17th annual Distinguished Advisor Conference October 28 – 30 (with access for completion of the program until November 14).

Is a taxable dividend a better option than paying a salary or bonus? There are close to 2 million small businesses in Canada, and many of them are looking for financial professionals to provide simple answers to complex questions such as this, so they can minimize risks to their business.   It’s a big opportunity for practice growth, but to work well with these clients, it’s critical to understand owner-manager remuneration options at year end.  Now you can step up to better guide these clients, by learning from experienced experts on November 18.

Are you ready to train new and staff on personal tax changes for 2020 at a comprehensive professional level?  Knowledge Bureau has just published its all new advanced T1 training course for experienced pros and it features fun and challenging new true-to-life case studies; all of which can be done online.

With the September 30 payment deadline in the past, the longest tax filing season on record is officially over. If it was not already obvious, two big wins came out of it: firstly, 90% of Canadians have fully embraced electronic filing. This phenomenon challenges tax professionals to change their practices to a modern, virtual model permanently.   The second win is this:  the vast majority of us are very compliant with our tax department. But, because there are a few T1s still outstanding (just over half a million compared to last year), there are eight important reasons to nudge your delinquent clients along now.