Late Filing Penalties: Talk About It!

While most T1 returns are in the hands of the Canada Revenue Agency (CRA) by April 30, we know many are not. In fact, millions of returns were still outstanding as of mid-May. Late-filing clients they need to know about the consequences, especially if they owe. Here’s a rundown to be aware of:

Mark Your Calendar: Tuesday, May 12, 2026, Toronto. Canadian financial advisors are facing a rapidly shifting investment landscape — one in which traditional portfolio construction is being tested by higher rates, evolving client expectations and growing demand for differentiated sources of return. Against that backdrop, Investment Executive, Advisor.ca and CE Corner are presenting Advisor Learning Series: Alternative Investments, a half-day event featuring the sector’s leading asset managers, and a limited number of complimentary in-person passes for Knowledge Bureau Report readers. Interested attendees are encouraged to reserve early by visiting this link and entering the code KNOWBUR100 at checkout. Find out more details about the event here.

We know you’re busy but please take a moment to check your April 2 emails for your Official Transcript, Attestation Package for Designates and Spring Enrolment Offers to help you get your CE Credits. Here’s an overview:

April 15, 2026: Ottawa, Ontario - Yesterday, the Honourable François-Philippe Champagne, Minister of Finance and National Revenue, announced that he will table the Spring Economic Update 2026 on Tuesday, April 28, 2026. In the Spring Economic Update 2026, the government will provide an update on its plan to build the strongest economy in the G7, and outline additional actions taken to drive prosperity, play to Canada’s strengths, and support Canadians where and when they need it most.

You may have noticed more of your clients expressing dismay over the high amount of taxes owing this April 30.  The culprit could be the late year capital gains distributions declared  by fund companies in 2025, which can be a particular surprise for investors who bought their funds late in the year.  Their T slips will indicate an entire year’s distribution.  Worse, they won’t necessarily have the cash to pay the taxes – now or throughout the rest of the year.  Here’s what you need to know:

After a scathing review by the Auditor General last September, on services provided by CRA last tax season, the tax department was mandated by the Finance Minister to implement a  “100-Day Plan” which ran from September 2 to December 11,2025.  It has already delivered meaningful progress as tax season 2026 comes to a close. We commend CRA employees for meeting the challenge, as it’s no small feat to communicate with millions of taxpayers and their advisors in such a short period of time.  Have you noticed a change?  Here’s the CRA’s take.

Building personal wealth allows people to manage financial risks and pursue new opportunities without relying on others. It also reduces financial stress and anxiety and averages down your marginal tax rate on income. So why do so few people in Canada invest in capital gains producing assets? Check out this week’s podcast, Real Tax News You Can Use with Evelyn Jacks and this week’s guest, Kim Moody, who will decipher some of the issues. Here’s a backdrop: