Spring Economic Statement: April 28, 2026

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.

Raising children is a costly business and Canada Revenue Agency acknowledges this with deductions and tax credits available when you file your annual income tax return. Here are claims for your minor children that you and your tax preparer should be considering for 2011: ï Child-care expenses. Assuming you have child-care expenses, remember to claim the lucrative child-care expense deduction, which reduces your net income. (Click here to download the form). But this claim is often audited; so, be sure to keep your child-care receipts. Reducing your net income is important because it is the base on which many benefits and refundable tax credits and benefits are calculated. The lower your net income, the greater your ability to access those credits and benefits. The Canada Child Tax Benefit (CCTB) is one of those benefits that are based on net income, in this case, family net income. It is a tax-free monthly payment made to eligible families and includes the National Child Benefit Supplement and the Child Disability Benefit. ï Child Amount. When it comes to non-refundable tax credits, be sure to claim the Child Amount for each eligible child under the age of 18. The $2,131 claim is not income-tested and either parent can claim it; in fact, unused amounts can be transferred from one parent to the other. ï Children's fitness and arts activities. Check private activity receipts to see if you can claim the Children's Fitness Amount and/or the new Children's Arts Amount.   ï Disability Tax Credit. If you have a disabled child, you'll want to claim the $7,341 Disability Amount, which, in the case of minor child, is increased by a supplement of $4,282 for a total claim of $11,523. This supplementary amount, however, can be reduced by the amount you claim as a child-care deduction. You will need a Disability Tax Credit Certificate, form T2201 completed by a doctor. ï Public Transit Amount. Finally, be sure your young ones keep all public transit passes for a possible claim for the Public Transit Amount. Investing Tips for Minors. Establish an in-trust account for your minor child. But be sure to deposit into the account only funds from the child's part-time jobs, CCTB received for the child and the capital gains earned on principal transferred to the child. (The Attribution Rules, which generally prohibit the transfer of assets from higher-income earners to lower-income earners in the family, requires that interest or dividends earned on principal transferred is attributed back to and reported by the adult transferor.) By having his or her own in-trust account, eligible earnings ó interest and dividends earned on "untainted accountsî ó are taxable in the child's hands. Because of the tax-free zone, the basic personal amount of $10,822, this usually allows the earnings to accumulate tax-free. Over time, planning around these rules but within the framework of the law will build assets in the hands of multiple family members, resulting in future income-splitting benefits. It's Your Money. Your Life. File tax returns for all family members together, including minor children. If you think strategically about family income splitting, you will be able to accumulate capital in many family members' hands. The objective is to unleash the potential each taxpayer has to maximize the tax-free zone of $10,822 and save significant sums over time. Evelyn Jacks, president of Knowledge Bureau, is author of Essential Tax Facts 2012 and co-author of Financial Recovery in a Fragile World. To purchase your books, visit http://www.knowledgebureau.com/Books.asp  

Tomorrow ó March 29 ó is the federal budget and the federal government will balance its need to generate revenue to reduce the deficit with maintaining a fragile economic recovery. Knowledge Bureau Report's team of experts will examine the budget, access the changes and tell you what it all means to you. Watch for Budget 2012 Special Report.  

Can a bank be held liable by victims of fraud if the fraudster was a customer of the bank and carried out his fraud using various bank accounts, in the process arousing concerns by bank staff? We will soon find out as, on Aug. 15, the Ontario Superior Court of Justice approved a class-action lawsuit against the Bank of Montreal (BMO). The lawsuit, Pardhan v. Bank of Montreal, alleges that BMO is culpable because Salim Damji, who defrauded investors of more than $77 million from 1999-2002, deposited the stolen money into various personal accounts at various BMO branches, as well as into an account in the name of a numbered company operating as Cash Plus. Many investors' cheques were written "in trust,î yet Damji deposited them into non-trust accounts. The suit maintains that BMO knowingly assisted this breach of trust, knowingly received the fraudulent funds and/or was negligent in its receipt of these funds. Damji, a resident of Toronto, claimed that his company, STS Inc., had recently developed a new teeth-whitening product that was soon to be sold to industry giant Colgate-Palmolive. He offered investors the chance to buy into his company before the sale, putting the money "in trustî until the deal was inked. Damji must have been very persuasive, as he was able to extract more than $77 million from investors. But it was all a lie ó there was no teeth-whitening product, no sale to Colgate, not even a company and certainly no money in trust. On April 26, 2002, Damji was arrested and charged. He pleaded guilty and was sentenced to seven and a half years in jail. He left behind a web of thousands of transactions but little cash. Damji had an internet gambling habit and had transferred funds offshore This recent decision represents the culmination of many administrative battles within the court system itself. Ruling that the litigation plan was deficient, the court had declined to certify the proposed class action as recently as April 2012.After considering additional evidence, the court has decided to certify the proceeding. Those investors who gave money to Damji for the STS scheme in trust and whose money was deposited in the Cash Plus account, will be represented in the action.  

Statistics Canada's closely watched indicator, the Consumer Price Index (CPI) added 0.5% in January, taking inflation to 2.5% for the 12 months ended January. The Bank of Canada's core index, at 2.1% for the same period, was right on target, suggesting no policy changes are forthcoming. "The 2.1% reading on core inflation,î says Douglas Porter, deputy chief economist at Bank of Montreal, "brings us right back to where the Bank of Canada expected it to be for the first quarter in its January Monetary Policy Review. Headline inflation at 2.5% is still above its call of 2.2%, but it should drop notably by March.î The culprits driving inflation are higher gas and food prices. Gasoline prices increased 6.8% in January while food prices for food purchased from stores rose 4.9%. Year over year, food prices rose 4.2% while the cost of energy advanced 6.5%. The electricity index rose 7.3%. In fact, prices rose in seven of the eight major components in the 12 months, the exception being recreation, education and reading. StatsCan notes that, excluding food and energy, consumer prices increased 1.6% in the 12 months to January after rising 1.3% in December.   Additional Educational Resources:  Debt and Cash Flow Management and Elements of Real Wealth Management courses.  

Canadian politicians, regulators, financial institutions and lobby groups are making their voices heard in protest against the "Volcker Rule,î the U.S. legislative response to the financial skullduggery of 2008. The Volcker Rule ó Section 619 of the Dodd-Frank Act ó will prohibit U.S. financial institutions from proprietary trading, that is, trading for their own accounts, and from owning, sponsoring or having certain relationships with a hedge fund or private equity fund. There is no doubt the proposed rule is well intended but how the rule will be applied come July 21 has stirred up controversy globally about U.S. protectionism and aroused concerns about "unintended consequences.î Canadian and international leaders fear the proposed rule may undermine rather than support efforts to get the global financial system on sound footing. The Investment Funds Institute of Canada (IFIC), representing Canadian's mutual fund industry, weighed in on the eve of the deadline for comment. Its concern: the proposed rule's definitions of "covered fundsî and "resident of the United States.î IFIC wants public mutual funds clearly distinguished from hedge funds, private equity funds and covered funds, and Canadian snowbirds and other temporary U.S. residents excluded from the definition of "resident of the United States.î "As drafted, the Volcker Rule erects a barrier between the Canadian mutual fund industry and its Canadian clients,î IFIC president Joanne De Laurentiis said in a press release, "especially among our retiree, snowbird population.î In his letter to U.S. Secretary of the Treasury Timothy Geithner, federal Finance Minister Jim Flaherty reiterated De Laurentiis's concerns: "Without a change to the rule, a Canadian covered banking entity could be precluded from continuing to sponsor such a fund if it had unit holders resident in the U.S., even temporarily.î But Flaherty and Bank of Canada Governor Mark Carey also have broader concerns that centre on the liquidity and resiliency of Canadian financial markets. In his Feb. 13 letter to Ben Bernanke, chairman of the U.S. Federal Reserve, Carney pointed out: "The proposed rule appears to extend well beyond U.S.-insured depository institutions and imposes significant restrictions on Canadian banking entities by limiting their use of U.S.-based resources, personnel and market infrastructure and by preventing them from trading with U.S. counterparties.î Says Flaherty in his letter: "The Volcker rule could apply to transactions between Canadian banks that are simply facilitated by U.S.-based financial infrastructure, such as U.S. clearing houses.î Carney points out three potential consequences of the proposed rule: ï Canadian banks market-making and risk-management activities may be limited. ï Trading in Canadian government bonds may be impaired, restricting competition and liquidity in these markets. ï The use of U.S.-based global market infrastructure may be curtailed, hindering progress in implementing global initiatives to promote financial stability. He recommends two changes: ï The "solely outside of the United Statesî exception should be predicated upon whether the activity entails risk for a U.S.-insured depository institution and not incidental connections with U.S. entities or infrastructure. ï Canadian government securities, including securities issued or guaranteed by the federal and provincial governments, should be exempt from proprietary trading restrictions. Tessa Wilmott is a financial journalist and editor of Knowledge Bureau Report.   Additional Educational Resource:  2012 Distinguished Advisors Conference in Naples, Florida  

The arrival of T4 and T5 slips ó by the end of February ó signals the official start of the annual tax-preparation rush. One important rule you and your tax preparer will want to follow is completing all family tax returns together, starting with the lowest-earning family member and progressing to the highest. This will allow you to take advantage of provisions for transferring income to children and provide savings opportunities for the young. Filing returns for minors. There are many reasons to file a tax return for minors. First of all, your minor child is taxable and required to file a return if he or she earned $10,822 or more in 2011, be it income from employment (for example, working at a local restaurant) or self-employment (babysitting and lawn-care services). But even if your minor's income doesn't meet that threshold, filing a return is important. Each year, 18% of his or her earned income will go toward creating RRSP contribution room; in time, when the child does become taxable, he or she will be able to contribute to an RRSP creating a RRSP deduction that will reduce income and taxes. This is important planning tool if you are going to be the one supporting your child when he or she attends post-secondary school. Before unabsorbed educational credits can be transferred to you, the student must first claim tuition, education and textbook credits to reduce his or her taxable income to zero. An RRSP deduction will reduce the student's income, allowing you to transfer more of the credits to your return.   Your minor child also needs to include in income any survivor and/or disability benefits from the Canada Pension Plan. This will boost his or her net income. If you are a single parent, this could be particularly significant because the claim for "eligible dependentî or spousal equivalent for tax purposes will be reduced or eliminated. But there is a tax special provision for minors available only to single parents: you can transfer taxable Universal Child-Care Benefits (UCCB) to the child, and he or she can include it in income. This will be of advantage to you if you are in a higher marginal tax bracket than the child. It's Your Money. Your Life. File tax returns for all family members together, including minor children. The objective is to maximize the tax free zone of $10,822 and, if necessary, reduce income levels further with an RRSP deduction. What's required is that the minor has eligible RRSP room, which is created by filing a return. This filing strategy can create savings on a supporting parent's return as well, with the transfer of certain available tax provisions ó to the benefit of the entire family unit. Next Time: Making claims for minor children on your return Evelyn Jacks, president of Knowledge Bureau, is author of Essential Tax Facts 2012 and co-author of Financial Recovery in a Fragile World. To purchase your books, visit www.knowledgebureau.com/books