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:

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.

The prescribed interest rate is set quarterly based on the average return rate for three-month treasury bills for the first month of the previous quarter, raised to the next highest whole percentage point.  For April, the average return rate for three-month treasury bills topped 1% so the prescribed rate is set to 2% for the July to September timeframe.