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.

 For the second time in less than a year the federal government has announced measures that will tighten mortgage regulations in this country, a move designed to protect Canadians from taking on too much debt. The three changes announced on January 17, 2011 are: Borrowers looking for more than 80% financing for a new, government insured mortgage will be restricted to a 30% amortization period. The loan to value ratio for refinancing is reduced from 90% to 85% Lines of credit that do not require regular payments (non-amortizing) and are secured by homes will no longer be eligible for government-backed insurance. A home ownerís line of credit that has a fixed schedule of principal and interest payments will continue to be insured by the government. The first two measures will come into force on March 18, 2011 and the third on April 18, 2011. Although the new rules reduce mortgage options, they should also serve to increase equity for homeowners and reduce interest paid for the lifetime of the mortgage, particularly for those using home equity loans.   These changes follow an interesting history in home financing in Canada: In 2006 the government began loosening regulations, allowing amortization periods to rise from 25 to 40 years and approving 100% loan-to-value financing. In response to the global economic crisis amortization periods were reduced to 35 years in October, 2008 and financing brought down to 95%. In April, 2010 the loan to value financing ratio was further reduced to 90% and a 20% down payment required for properties not occupied by the owner. Measures to ensure that borrowers are credit-worthy have been implemented recently as well. ADDITIONAL EDUCATIONAL RESOURCES: For more information on financing a mortgage see Essential Tax Facts, 2011 edition.

The Knowledge Bureau Report issued on January 12, 2011, contained an error in the article: Did You Know? Part Time Studies May Qualify For Education and Textbook Credits. We extend our thanks to tax professional Nancy Williams for pointing this out. Eligible students may claim the education amount if they receive a salary or wages while taking a course related to their job. This was not the case until the rules changed in 2004. This is certainly an important piece of information for all who believe in life-long learning! For more information about the Education Amount: http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns300-350/323/dctn-eng.html

On January 13th The Prime Minister announced the launch of a project that aims to reduce red tape for small and medium businesses. Did you know that the Canadian Federation of Independent Business estimates that businesses in Canada spent 30.5 billion dollars (that's 1.9% of the GDP) on regulatory compliance tasks in 2008? The smaller the business is the higher is the cost of doing business, according to Statistics Canada. The Red Tape Reduction Commission will consult with Canadians to identify compliance requirements that distract from the operation of a business and cost the employer time and money. Innovation, productivity and competitiveness suffer when a business is over-taxed with paperwork. This endeavor may provide a long lasting stimulus to the business community at a very reasonable cost. Click here for more information. Additional Educational Resources: Tax Planning for the Small Business Owner

A recent court ruling has caused CRA to change its policy on whether Wage Loss Replacement Benefits are pensionable for CPP purposes. On January 28, 2010, the Federal Court of Appeal ruled on Toronto Transit Commission v. Canada. It wrote that employees in receipt of WLRB are not able to perform services under their contract of employment therefore not pensionable under CPP regulations. CPP does not have to be deducted from these benefits and employers may apply for a refund of 2010 and current year payments and may refund employees. Past year overpayments must be requested via Form PD24: http://www.cra-arc.gc.ca/E/pbg/tf/pd24/pd24-09e.pdf within 4 years of the end of the tax year in which the overpayment occurred. Please note that this ruling does not apply to the Quebec Pension Plan. For more information: http://www.cra-arc.gc.ca/tx/bsnss/tpcs/pyrll/clcltng/spcl/wglssqstns-eng.html   Additional Educational Resources: Advanced Payroll for Professional Bookkeepers

CRA has a new Tax Tip page with information on Tax Free Savings Accounts. It clarifies the type of investments that can be held and how TFSA contribution room is calculated. It also explains that contribution room freed up by withdrawing from a TFSA account is not restored until the beginning of the next tax year. The difference between a transfer and a withdrawal is highlighted as well. TFSA over-contributions are based upon the total contributed each year and not on the balance of all TFSA holdings at the end of the year. So, multiple withdrawals and re-contributions could put a taxpayer over their limit even though the balance does not change! A tax of 1% per month on the highest excess TFSA amount will be charged until the extra contributions are withdrawn. For more information: http://www.cra-arc.gc.ca/nwsrm/txtps/2011/tt110111-eng.html?=eml20110111 http://www.cra-arc.gc.ca/tx/tfsa-celi/menu-eng.html   Additional Educational Resources: Elements of Real Wealth Management

Canada Revenue Agency has a message for taxpayers who participate in gifting schemes ñ you will be audited! These gifting arrangements involve donation receipts that are issued for amounts that far exceed the money contributed to the "charityî. If the contribution is denied the taxpayer will have lost the amount given to the organization involved, the refund will have to be repaid and interest and penalties may apply. For more information: http://www.cra-arc.gc.ca/nwsrm/lrts/2010/l101223-eng.html?=eml20101223   Additional Education Resources: Fundamentals of Succession Planning  and Master Your Philanthropy