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?

Last month we discussed the key disruptors leaders need to deal with in building their businesses to the next level. Scaling up is important . . . but what does that mean? What skills do you need to lead your team through dramatic change and get better results? You essentially have two choices: create a culture of compliance or a culture of collaboration.

Precise tax knowledge counts:  accurate tax preparation is the goal of every professional tax specialist and it is a tremendous value add for financial advisors and their staff who will field hundreds of calls from their clients this tax season. The winter edition of CE Summits Theme – Advanced 2018 Personal Tax Update, coming to six cities near you, begins Thursday, January 18 in Winnipeg. Register today and save on tuition fees.

The tax take is much more significant than first thought. The Parliamentary Budget Officer (PBO) released a report on November 23, 2017, that suggests the revenue increase from proposed new taxes on passive income earned in a small business corporation will be as high as $6 Billion dollars annually by the time the full effects of the changes are implemented. This is much more than the initial $250 Million figure first suggested by the Department of Finance, and still only a best guess.

An Auditor General report released last week indicates that the CRA is blocking calls and providing Canadians with inaccurate information, leaving many at risk of severe and expensive consequences in filing their tax returns.  This is especially troublesome as Canadian taxpayers bear the burden of proof to justify the entries they submit on their tax returns.

Have you or any of your clients received a pink slip or early retirement package? There is some tax planning to consider doing before saying farewell to the world of work.

Knowledge Bureau’s November Poll asks you to weigh in on the level of audit activity being experienced across Canada, amidst reports of delays and other service-related problems at CRA, like those experienced by single mom, Marcia Peel, who is still waiting for her Canada Child Benefit after 6 months and $700 in legal fees.