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?

We now have a better idea about the audit techniques CRA will have at their fingertips to ensure the Canada Emergency Response Benefits (CERB) received by laid off or furloughed employees, The Canada Emergency Student Benefit (CESB) and the Canada Emergency Wage Subsidies (CEWS) received by employers are validated. The numbers will appear on a new T4 slip, which is likely to cause a few headaches for small employers and create some new opportunities for bookkeepers and tax accountants. Here are the details:

Income inequality has been a topic of discussion for decades.  Now, with the pandemic as the catalyst, the advent of the CERB and future income uncertainty have brought this issue and a broader one – the right to a basic minimum income – some increased momentum.  There may be a simpler solution to help people immediately, and at the same time remove the controversy around incentives to work.

The federal government has raised the amount that can be claimed for meals under a variety of provisions in the Income Tax Act by 35%, from $17 to $23 a meal or $69 a day.  The last change occurred in 2009.  The new amount is generous, as the purchasing power of a 2009 dollar today is 83% of its value. If adjusted for inflation, the $17 meal in 2009 would cost $20.53 in 2020. More good news:  the change is retroactive to January 1, 2020.  There are three groups of taxpayers who will be cheering:

This year’s DAC Conference brings together an esteemed faculty of speakers whose thoughtful focus will be on rebuilding financial confidence for the thousands of clients the audience will serve this year.  It’s a groundbreaking and must-attend event, and the only one-of-its kind for tax, bookkeeping and financial advisors who wish to meld skills and collaborate to raise the bar in providing high value services to their clients.  Featured topics and speakers are:

Knowledge Bureau is pleased to recognize the achievements of its graduating class July 2019- June 2020 at the Virtual Distinguished Advisor Conference (DAC), October 28-30.  Be sure to find yourself and/or your colleagues and friends on the honor roll and graduating class list of Designates below. Congratulations are in order for all!

Check out our new calendar for your fall studies. Now is the time to enrol to study on your own time with online training or try and interactive Virtual Class Option. Act by September 15 to take advantage of early registration offers.