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:

According to the most recent tax filing statistics, the majority of Canadians chose to abide by the extended June 1 tax filing deadline even though late filing penalties and interest won’t apply until September 1. But that doesn’t mean that tax season is over – there are some important filing deadlines on the horizon, and that matters because CRA is officially resuming audit activity.

A federal fiscal update has finally been scheduled for July 8, although the government is planning only a “snapshot” of the current state of affairs, and no fiscal projections, leaving lots of questions. What will be the future repercussions of this year’s emergency relief benefits?  Will taxes increase in 2021? What planning should take place today?  How can the CERB be used to help?

The role of the tax specialist is an essential service as families must file tax returns to qualify for important social benefits amidst a devastating and stressful global event: the COVID Pandemic.  Worse, stressed families face onerous self-assessment procedures for government programs like CERB and the various business loans and wage subsidies. To get the best after-tax results for these families, highly trained tax services specialists must understand investment, retirement, business and estate planning strategies. Only a Knowledge Bureau Education provides all of these elements in its online designation programs.

Knowledge Bureau is pleased to announce the publication of a new certificate course, Personal Pension Planning For Corporate Owner-Managers, by JP Laporte, CEO, INTEGRIS Pension Management Corp and Mark Taucar, CFA, Porfolio Manager, Accilent Capital Management Inc.  It’s a must for any advisor who is working with owner-managers or professionals in this challenging pandemic environment.

In the fray of the pandemic, tax filing deadlines have come and gone, with the most recent being the June 1 personal tax filing deadline.  Governments have been committed to keeping tax benefits flowing based on the 2018 return and will even waive late filing penalties and interest for failure to file.  But a big reckoning is coming at midnight on September 1.

The CERB auditing has begun. Unfortunately, with a bit of “gotcha” scenario. The CRA is starting to crack down on those who are “misusing” the federal Canadian Emergency Response Benefits by introducing a tip line to report fraudsters.  It’s too bad that the CRA has not given the repayment option portals the same fanfare. Tax and financial advisors can help, though.