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.

A significant tax ruling has set some new legislative matters in motion to ensure benefit potential Registered Disability Savings Account beneficiaries are not penalized by a recent ruling by the Tax Court of Canada. In, "Tozzi v. The Queenî, Giovanni Tozzi applied for the Disability Tax Credit (DTC) and was denied. He was unable to appeal because he did not have enough income for the tax credit to be of financial benefit to him. He explained to the court that in order to be a beneficiary of a Registered Disability Savings Account he has to be eligible for the DTC and CRA must allow appeals for reasons other than tax reduction. The judge dismissed Mr. Tozzi's appeal as it is beyond the jurisdiction of Tax Court but in doing so noted that Parliament should address this issue. And this is exactly what has happened. On November 25, 2010, Minister of Finance Jim Flaherty announced that the government will introduce legislation that will allow an individual to appeal a decision by CRA even when there is no tax owing (a "nilî assessment). Currently an appeal is not allowed when tax payable is not affected For Mr. Flaherty's announcement: http://www.fin.gc.ca/n10/10-113-eng.asp For the Tax Court ruling: http://decision.tcc-cci.gc.ca/en/2010/2010tcc545/2010tcc545.html ADDITIONAL EDUCATIONAL RESOURCES: Essential Tax Facts 2011, Introduction to Personal Tax Preparation Course  

Legislation that will give Ontario parents of active children a refundable tax credit has passed into law. This will put up to $50 per child age 16 and under, and up to $100 per disabled child age 18 and under, directly into the pockets of families, by filing a 2010 tax return. The costs of both fitness and non-fitness activities are eligible back to January 1st, 2010. According to the Ontario Finance Department, the following are eligibility criteria: Fitness activities: the same as for the federal Children's Fitness Tax Credit; that is, the activities must require a significant amount of physical activity that contributes to cardio-respiratory endurance, plus one or more of muscular strength, muscular endurance, flexibility, and balance. Non-fitness activities must fall under one of the following categories: Instruction in language, music, dramatic arts, dance and visual arts. Activities with a substantial focus on wilderness and the natural environment. Structured interaction among children where supervisors teach or help children develop interpersonal skills. Enrichment or tutoring in academic subjects. This tax credit would not support programs that promote illegal activities. ADDITIONAL EDUCATIONAL RESOURCES: Distinguished Advisor Workshops January 2011, which will discuss personal tax changes in detail.

It's trueóthere are fewer places for tax dodgers to hide these days. Global finance ministers are clamping down on tax havens. Canada has agreed to comply with the standard for the exchange of tax information set by the OECD (Organization for Economic Co-operation and Development). Did you know that within the past year and a half Canada has signed 11 Tax Information Exchange Agreements (TIEAs)? "These agreements will help Canadian tax authority's combat international tax evasion,î says Finance Minister Jim Flaherty. Countries with whom Canada does not have tax treaties have signed TIEAs with Canada. These include San Marina, Anguilla, Bermuda, the Cayman Islands and the Turks and Caicos Islands. Additional agreements with other countries are in progress. For more information: http://www.fin.gc.ca/n10/10-107-eng.asp ADDITIONAL EDUCATIONAL RESOURCES: Cross Border Taxation Course

Now is the best time to discuss whether the December 15 quarterly instalment will be necessary for clients who previously met the profile. Farmers, who must make one instalment on December 31 should be especially careful. The prairie rainfall wiped out many crops and it is quite possible a reduced or no tax instalment will be required this year. CRA's billing system, however, may tell a different story. Any professional advisor and their clients will avoid overpayment however by completing an estimation of 2010 income and collaborating with financial advisors to maximize RRSP contribution room to get the results needed to avoid the payment. To help, CRA released a new version of "Paying Your Income Tax by Instalmentsî (Publication number P110) on November 18. This is a great resource for information on instalment payment amounts, remittance schedules, how to reduce required instalment obligations and interest and penalties for late or missing payments. In the past, tax instalment calculations include net tax owing and CPP payments on earnings. Voluntary E.I contributions for the self-employed on line 430 are now part of the formula as well. The complete publication is available: http://www.cra-arc.gc.ca/E/pub/tg/p110/README.html ADDITIONAL EDUCATIONAL RESOURCES: Essential Tax Facts, 2011 and Introduction to Personal Tax

On November 4, CRA released an update to the P151 publication; an excellent reference for Canadians who vacation or spend part of the year in the U.S. The guide includes information on completion of both Canadian and U.S. Tax returns. The Internal Revenue Service (IRS) has contributed to the information contained in the section on U.S. Tax Laws. Readers will find information on health coverage, ownership of U.S. property and a discussion of residential ties. U.S. gambling and lottery winnings are also discussed. This is a must-read for anyone who plans to travel to our neighbor to the south this year! ADDITIONAL EDUCATIONAL RESOURCES: EverGreen Explanatory Notes and Cross Border Taxationóa certificate course from the Knowledge Bureau. (link) TAX EVASION: FAILURE TO ACCOUNT FOR MIXED USE EXPENSES A real estate agent from Hammonds Plains, NS has been fined $25,126 for evading taxes by falsifying business expenses. This amount is more than 120% of the taxes owed. Personal expenses were altered to look like business expenses and she arranged for invoices for shared expenses to be reissued as her expenses alone. HST returns were also falsified. In addition to court-imposed fines, persons convicted of tax evasion must file or re-file the tax returns in question and pay the taxes owing plus interest. Civil penalties may also be assessed by CRA. For more information see: http://www.cra-arc.gc.ca/nwsrm/cnvctns/ns/ns101103-eng.html ADDITIONAL EDUCATIONAL RESOURCE: Essential Tax Facts 2011

Significant change is about to occur to the Canada Pension Plan, and tax and financial advisors should use this opportunity to do some "knowledge marketingî to their clients before 2012 is upon us. Canadians who have already started to receive CPP and are not going to be working in the future will not be affected by these changes. However, for the rest of us, the following changes will apply: The monthly amount will increase for those waiting until after age 65 to receive CPP. The longer you wait, the more you get until age 70. The monthly amount will decrease for those taking CPP between ages 60-65. The sooner you begin the less you will receive. You will not have to stop working in order to begin receiving CPP. If you are under 65, receiving CPP and still working, you and your employer will have to continue making CPP contributions. This will increase your benefit, however, later. If you are between 65-70 you can choose to continue to make CPP contributions. If you contribute then your employer has to do so as well. This will increase your benefit when you do begin to receive it. A longer period of low earning years will be excluded from your CPP benefit calculation. This too will increase your benefit. The links below contain more detailed information for the general public: http://www.servicecanada.gc.ca/eng/isp/common/proceed/socinfo.shtml http://www.servicecanada.gc.ca/eng/isp/cpp/postrtrben/main.shtml For professionals, the information for Financial Advisors is especially interesting at this link: http://www.servicecanada.gc.ca/eng/isp/cpp/postrtrben/advisors.shtml ADDITIONAL EDUCATIONAL RESOURCES: Introduction to Personal Tax Preparation, Tax Efficient Retirement Income Planning