May 2025 Poll

Does the Liberal promise expected soon to cut the lowest personal income tax rate by 1% to 14%,  go far enough to help Canadians impacted by high costs?

By May 3, the CRA received a total of 25,857,885 returns filed by Canadians – 94% of them electronically - which is 83% of the total returns filed last year. The average tax refund is $1,987: a jump from last year’s average of $1,878.  What that means is that the CRA is increasingly holding on to more of Canadians’ money throughout the year – about $165 a month – which could be put to good use in inflationary times.  With 17% of returns left to file in advance of the June 15 deadline for proprietorship, it’s also important to note that those filers who owe so far have also paid a substantial chunk.

Unfortunately, even as interest rates rise in Canada, there are new restrictions in interest deductibility on the horizon.  Re-introduced on February 4, 2022, a 2021 federal budget proposal will limit interest deductibility and financing expenses for certain taxpayers based on a percentage of earnings before interest, taxes, depreciation and amortization (EBITDA).  The rules are expected to come into effect after December 31, 2022.  The new rules will be known as the Excessive Interest and Financing Expenses Limitation (EIFEL) and comments are to be submitted to Finance Canada this week by May 5.

There are more tax filing milestones in sight, and tax and financial professionals will want to ensure their clients are reminded of them now with Knowledge Bureau’s handy checklist.  Most important is the June 15 tax filing deadline for those with unincorporated businesses.  But there are other important dates too.  Here are some important dates and deadlines coming up to make note of in May and June!

How maxed out is your time?  Most business owners struggle with this question – too much to do, too little time.  To prioritize, especially after tax season, consider:  are you spending more time working on the creation of income or the creation of wealth?  They are conjoined for sure, but by executing on financial priorities that are critical in all the important spheres in your life –in a healthy balance – you will likely achieve more of both. 

There are 8 important topics and 6 incredibly interesting speakers lined up to provide you with critical education on the latest budget changes and tax, retirement and estate planning trends.  By signing up before Monday, you’ll also get a sneak peek at a brand-new learning experience with Knowledge Bureau, including a comprehensive online course to supplement the sessions. Check out the topics and speakers and enrol now.

Ready to increase your tax skillset for the 2023 tax season? The newly updated Personal Tax Course – Advanced Level from Knowledge Bureau will prepare you to dive deeper into the more complex tax scenarios you will want to do more confidently to enhance your professional service offerings next year.  It’s available now so you can start your Summer School – personally or for your staff – and as a KBR reader, we have a special tuition offer for you too.