The Importance of Provincial Budgets: Elbows Up and No Bracket Creep!

Some of the right things are happening in Nova Scotia, from the perspective of improving standards of living in that province.  And that’s important news because according to the Fraser Institute, Canadians have suffered the worst five-year decline in their standard of living over the 2020-to-2024 period since the Great Depression.  It notes, our Gross Domestic Product (GDP) per person decreased by 2.0% (0.4% annually) ; this despite aggregate GDP growth of 1.5% over the period.  Further, all ten provinces are experiencing stagnation, which is unique in our history.  So what’s the good news in Nova Scotia, at this critical juncture?

Professionals in the tax, bookkeeping and accounting industries can add big value to stimulate healthy new births in a new economy. Based on newly released statistics on November 10, professionals could be more proactive in improving survival rates…but how? One way is to formalize business planning, budgeting and forecasting service offerings.

There are big penalties for businesses who don’t remain above board with the taxman. Fees paid to professional bookkeepers and tax accountants can be well worth it, as a self-employed taxpayer in the construction industry recently found out.

Should you buy or lease a new vehicle or computer before year end?  It’s a great question for financial advisors and their clients to discuss before year end. Canada’s tax system has some excellent incentives for people in the market for buying business assets before year end.  Here’s an overview of the provisions that were first introduced with the November 21, 2018 Fall Economic Statement:

Abe Toews, CFP, CLU, CH.F.C, CHS, Chair of the Board of Directors, Advocis will make a special guest appearance to discuss year end donations strategies as he shares the virtual stage with expert headliners at the November 18 Virtual CE Summit.  The theme is focused planning for investors and self-employed taxpayers.  Advisors who need to brush up on advanced planning, especially for corporate owner-managers, should mark their calendars and register no later than Monday, November 16.   

The deadline for filing Registered Charity Information returns was extended to December 31, 2020 for returns due between March 18, 2020 and December 31, 2020. However, the CRA’s Charities Directorate is also encouraging charities to file as soon as possible to avoid expected processing delays as a result of the high volume of returns that will be submitted around the deadline.

Yesterday, Canada’s Chief Public Health Officer Theresa Tam announced that Canadians should be wearing triple-ply non-medical masks when in shared indoor spaces with people from outside of their immediate household, and when in close contact with others in public. It begs the question, will Personal Protective Equipment (PPE) and other health related costs be deductible? The answer is, it depends.