Opportunity: Canadian Dollar Stabilizes, Somewhat

Things have started to turn around for the Canadian dollar in the second quarter of 2025. It hit a 22 year low in January of 2025. Investors and property owners, who have been swooning at the high burn rate in their travel plans and property maintenance abroad, may wish to consider recent more positive trends and consider some risk mitigation opportunities now that the dollar is stabilizing somewhat.  

In 2019, the Alberta government paused the indexation of personal amounts and tax brackets. The effect of no indexation is an annual increase in taxes because wages tend to increase with inflation causing higher taxes to be levied on individuals.  Here’s a look at the new brackets and rates:

Prepare to defend your clients against tax risk emanating from increasing CRA audit activity. Then, take a detailed look at the long and convoluted road to tax change that has resulted substantive change in how your clients report income, deductions, credits and exercise their appeal rights.  Knowledge Bureau’s new Audit Defence Course is now available online and features interesting perspectives from some of Canada’s leading tax experts.  In focus:  independent business owners, which could include you.

This year, the year end tax planning opportunities to build and preserve wealth are most important for investors and business owners swooning under the speed of change.  Join Evelyn Jacks, Alan Rowell and Dr. Dean Smith for a vibrant and comprehensive year end tax planning update at the Virtual CE Summit, November 16.  Here’s what’s on the agenda; register by October 14 for early bird savings. Tuition is tax deductible and qualifies for CE Credits.

‘Must-Attend’ annual event to welcome you back to DAC Acuity 2022. Open to all registrants, speakers and sponsors. Carol Willes is the Director of Estate Planning at BMO Private Wealth. Willes knows what it takes to assist client’s in navigating their present financial situation and develop their future legacy, while simultaneously embracing your highest standards of professionalism.

The history of taxation in Canada is as old as Canada itself and it matters in a modern context, because recently a Tax Court of Canada case was tasked with examining when a tax is a penalty, specifically regarding a Tax-Free Savings Account (TFSA).     

While only 10% of small business would file for bankruptcy today, over 60% are carrying pandemic debt of about $160,000 according to the CFIB.  This is worrisome given new data out of the U.S., where close to 50% of small businesses are at risk of shutting down[1].