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:

The federal government announced Monday that tax filing and payment deadlines have been informally extended once again, this time until September 30. Though the deadline officially listed remains as June, no late filing penalties or interest will be charged provided the new September 30 deadline is met.  However, tax credit or benefit recipients should file as soon as possible to avoid interruptions in payments.

On Monday, July 27 a couple of highly anticipated pandemic support measures were passed into law: the changes to the Canada Emergency Wage Subsidy (CEWS) for Period 5 forward and the one-time payments to disabled persons. This latter provision extended the tax-free disability payment to two categories of recipients who will not require a Disability Tax Credit to receive it.

We hope that you’re enjoying your summer holidays. Please note that our editorial team is on summer break, too. Knowledge Bureau Report will return August 12. However, our dedicated Educational Consultants are busy at work for those of you who wish to start Summer School online before the end of the month.

On July 17, 2020, a redesigned Canada Emergency Wage Subsidy (CEWS) was proposed with substantive changes over previous periods and the new rules are very complex. The good news is that the program has been extended to December 19, 2020 and potentially all businesses with a revenue loss over 0% could qualify for a wage subsidy.   

Between a rock and a hard place. That could well describe how Canada’s suffering business owners feel about the complete lack of direction that followed Monday’s announcement that the Canada Emergency Wage Subsidy (CEWS) has been extended until December 2020. It’s meant to help restart the nation’s economy, but you won’t find a single reference to this on CRA’s website as of today. Here’s why that’s a very big deal:

Business owners remain financially stranded in Canada.  According to a new survey by the CFIB, 33% of business owners have had to dip into their personal savings just to stay afloat during the pandemic crisis, 26% of them have had to increase credit card debt, and 8% of them tapped into their retirement savings early. That scenario is bolstered by a July 15 survey from Stats Canada which confirms the extent of the financial burden borne by business owners. A continued lifeline is critical to clinch Canada’s economic recovery.