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.

The Minister of Finance, The Honourable Jim Flaherty, released a statement recently advising proposed changes contained in the Notice of Ways and Means Motion tabled on March 22, 2010 will provide clear GST rules for those within the financial services industry. The draft legislation relating to the application of GST within the industry was introduced to improve on the legislation previously released in January 2007. The current system for applying GST contains very complex rules relating to registered pension plan trusts, and the new system will offer an equitable application of GST rebates and an updated process for GST returns to provide improved reporting. Some highlights of the draft legislation are as follows: The CRA and financial institutions will have an improved and more flexible pre-approval process for the allocation method of input tax credits (ITC's) Canadian financial institutions with foreign branches can choose a self-assessment process that is simpler to implement when services are provided by those foreign branches Banks and other large dealers will be allowed to use their own methods to allocate ITC's Large derivative transactions undertaken by financial institutions could be excluded from self-assessment rules. A new GST annual information return would be introduced, due the same time as the institution's annual tax return To review the GST Notice related to the changes, link here. Educational Resources: For more information on tax planning provisions and compliance requirements subscribe to The Knowledge Bureau's online tax reference for taxpayers, financial advisors and their clients: EverGreen Explanatory Notes.

The 2010 Saskatchewan budget was tabled on March 24, 2010. Although it was presented as being a balanced budget, it required some borrowing from its Growth and Financial Security Fund (the rainy day fund) in order to meet that goal, otherwise there would have been a $174 million dollar deficit. The budget contained little in the way of income tax changes or sales tax changes. Announcements were made with respect to cutting just over 500 government positions, many due to programs that were being wound down and some others due to attrition. There were sin tax increases on both beer and cigarettes and there have been a limit established on tax-free cartons for First Nation smokers ñ decreased to one carton from three. An end was also announced regarding subsidies available for universal chiropractic care which would save $10 million dollars a year. Low-income Saskatchewan residents will now be covered to a maximum of twelve visits a year. A three percent increase in health care spending was also announced. For the most up-to-date information on tax forms and tax changes consult: EverGreen Explanatory Notes: Your online gateway to the latest changes at the Department of Finance and CRA.

By Alan Rowell , DFA, Tax Services Specialist Ontario's budget announced on March 25, 2010 was big on repetition of previously announced measures, but low on details. Ontario will record a budget deficit of $21.3 billion, down from the forecasted $24.7 billion, but still holds the dubious distinction of being the highest deficit in Ontario's history. The Ontario government plans to eliminate the deficit over the next seven years, but there is no effective indication or detail as to how this will be achieved, other than government cost cutting and project deferrals. The main thrust of the deficit reduction plan consists of forecasted job creation over the next seven years. In the meantime, Ontario forecasts estimate an interest expense of 10 billion dollars over the 2010-11 fiscal year; almost 10% of Ontario's forecasted revenues.Harmonized Sales Tax Ontario's previously announced move to a Value-Added tax on July 1, 2010 remains the focus of Ontario's budget plan. The budget reaffirmed the government's commitment for the combined federal and provincial HST rate to be 13%. To help offset the impact of the HST, the budget announced two new tax credits, replacing the existing combined property and sales tax credits, effective for the 2010 tax year for individuals and families. Ontario residents will also receive Sales Tax Transition Benefit cheques in June 2010, December 2010 and June 2011. These transition amounts are based on income reported on the 2009 income tax returns and consist of total amounts of $300 for a single taxpayer with income less than $80,000, and $1,000 for family incomes less than $160,000. The new Ontario Sales Tax Credit will consist of quarterly payments totalling $260 per year for each adult and child in an eligible family. These tax credits will be income-tested and will phase out based on the family income. Ontario business will also receive assistance to offset the costs of transitioning to HST of up to $1,000.Tax Cuts for Individuals A previously announced personal tax rate change, reducing the personal rate from 6.05% to 5.05% on the first $37,106 of income gives Ontario, at least temporarily, the distinction of having the lowest personal tax rate in Canada. The previously existing Property Tax Credit will be replaced with a new Ontario Energy and Property Tax Credit. This credit will be paid quarterly beginning in 2011 based on 2010 personal tax return filings. While details are not available, it is almost a certainty that this credit will also be income tested. The Northern Ontario Energy Credit has been made a permanent tax credit to help Northern Ontario residents offset the higher cost of energy. The credit consists of $130 for single persons with incomes up to $35,000 and up to $200 for families with incomes up to $45,000. The credits are income tested and are eliminated at $48,000 and $65,000 respectively.Tax Cuts for Business The budget announced a reduction in the small business corporate income tax rate from 5.5% to 4.5% effective July 1, 2010, on net income under $500,000. Additionally the budget reiterated a number of previously announced measures including: Cutting the general corporate tax rate from 14% to 12%. The rate is to be further reduced to 10% over the next three years. Cutting the corporate income tax rate for manufacturing, processing, mining, logging, farming and fishing from 12% to 10% Elimination of the Ontario Capital Tax effective July 1, 2010 Elimination of the small business surtax of 4.5%Mirroring Federal Tax Ontario adopted and automatically will mirror the Federal budget tax changes announced earlier this year. Roll-over of certain registered plan proceeds to a Registered Disability Savings plan; Taxation options of the Universal Child Care Benefit; Changes to the Medical Expense Tax Credit; Scholarship exemption and Education Tax Credit; Treatment of employee stock options; Deduction for US Social Security benefits; Disbursement quota for charities; and Capital cost allowance system. For the most up-to-date information on tax forms and tax changes consult: EverGreen Explanatory Notes: Your online gateway to the latest changes at the Department of Finance and CRA.

The Federal Government, as part of Canada's Economic Action Plan, has introduced Bill C-56, Fairness for the Self-Employed Act, which will allow self-employed person to "opt-inî to restricted Employment Benefits currently only available to employees.  The legislation has now been passed therefore, effective January 1, 2010, those taxpayers running proprietorships can now access some of the same EI benefits that employees have.The Benefits The Fairness for the Self-Employed Act will allow self-employed persons to receive EI benefits for life-transition events as follows: Maternity benefits (15 weeks maximum) are available to birth mothers and cover the period surrounding birth Parental/adoptive benefits (35 week maximum) are available to adoptive or biological parents while they are caring for a newborn or newly adopted child, and may be taken by either parent or shared between them Sickness benefits (15 weeks maximum) which may be paid to a person who is unable to work because of sickness, injury or quarantine; and Compassionate care benefits (6weeks maximum) which may be paid to persons who have to be away from work temporarily to provide care or support to a family member who is gravely ill with significant risk of death It is important to note that self-employed persons will remain ineligible for regular EI benefits due to lay-offs or business slow-downs.Opt-in Beginning January 1, 2010, self-employed persons have the option of participating in the program. In order to be eligible for benefits, the individual must register with the Canada Employment Insurance Commission on-line through Service Canada. For the purposes of this EI program, you are considered self-employed if you operate your own business or are employed by a corporation and control more than 40% of the voting shares.Opt-out Once registered, you will have 60 days to change your mind. After the 60 days, you are in the program for the calendar year whether you want to or not. Assuming that you do not collect any EI benefits, you may choose to opt-out at the beginning of any calendar year. If you do receive EI benefits, you are no longer eligible to opt-out of the EI program on self-employed earnings, ever. This stipulation remains in effect regardless of your self-employed status or change in self-employment. Once you receive a benefit, you will continue to remain in the program and pay annual premiums.Costs Self-employed persons deciding to "opt-inî to the EI program will be subjected to the EI premium same as an employee. The business however, will not be required to pay the employer's portion of the EI premium. Premiums will be paid on the individual's personal tax return annually and a minimum self-employed income of $6,000 is required. In order to qualify for EI benefits the self-employed person must be registered and pay EI premiums for one year prior to filing a claim. This means that if you register in January 2010, you will become eligible to receive EI benefits in January 2011. Additionally, any income earned from employment or self-employment while in receipt of EI benefits may reduce the amount of the benefit. The legislation for this Act was passed on December 15, 2009 so self-employed individuals can opt into the EI sytem and be eligible for special EI benefits. Self-employed persons should check with their individual financial advisors before entering into an EI agreement to ensure that it is right for you. Alan Rowell is a DFA, Tax Services Specialist and President of The Accounting Place. Alan can be reached through www.theaccountingplace.net

The Honourable Jim Flaherty, Minister of Finance, tabled a Notice of Ways and Means Motion to implement Budget 2010 tax measures, and provisions referenced in the Budget, on March 22. The Notice also includes provisions referenced in Budget 2010 to implement tax measures that were previously announced, including changes to:<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com🏢office" /> The claiming of Universal Child Care Benefit amounts by single parents; The elimination of tax reporting for many investments under the definition of taxable Canadian property; The removal of expenses incurred for purely cosmetic procedures from the Medical Expense Tax Credit; A reduction in the rate of interest payable to corporations by CRA on tax overpayments The Notice also contains measures relating to federally regulated private pension plans.  These include: Increased protection for plan members as solvency deficits are dealt with and upon plan terminations companies will be required to fully fund the pension benefits. Disclosure requirements within plans will be enhanced and annual member statements will include expanded information, which will provide important details for plan members. Minimum funding requirements using average solvency ratios to determine the market value of the plans. Pension surplus thresholds will be increased to 25 percent under the Income Tax Act, an increase from the current 10%. Funding arrangements will be made for pension plans that are in distress and the plan sponsor would be provided with a period of time where payments are not required. Changes would be negotiated to the pension arrangements and representation would be provided all plan members. A framework for defined contribution plans that would implement measures to provide explicit information on responsibilities and accountabilities to employers, members and administrators. The Minister of Finance, the Honourable Jim Flaherty said "These reforms will provide enhanced benefit security for workers and retirees while allowing pension plan sponsors to better manage their funding obligations as part of their overall business operations.î   For the most up-to-date information on tax forms and tax changes consult: EverGreen Explanatory Notes: Your online gateway to the latest changes at the Department of Finance and CRA.  

With tax season upon us, it is time for a review of the joint, transferable and optional tax provisions that can be claimed on an inter-family basis. Remember, there are benefits to filing your tax return from a family point of view; it willinfluence your wealth accumulation activities and inter-generational estate planning. Tax Element Provision Can be claimed by Income Canada Pension Plan Benefit After age 60, either spouse, if an assignment of split benefits has been applied for. Taxable Dividends Can be transferred to high earning spouse if Spousal Amount is created or increased. Eligible pension income Up to 50% can be transferred to other spouse Deductions Safety Deposit Box Either spouse may claim if it holds household investment documents Non-Refundable Tax Credits                                                                                                               Basic Personal Amount Not transferable Age Amount, Pension Income Amount, Disability Amount, Tuition, Education and Textbook Amounts, Amount for Dependent Minor Transferable to higher earner if lower earner is not taxable. In the case of the Disability Amount and Tuition, Education and Textbook amounts this can include transfers from dependants other than spouse. Claims for Spouse or Equivalent, Infirm Adults, Caregiver, Donations Claimed by the supporting individual with higher taxable income in general. Adoption Expenses Can be claimed by either spouse or shared between them. Medical Expenses Usually claimed by spouse with lower net income for best benefit. Labour Sponsored Fund Tax Credit Can be claimed by either spouse if purchased within spousal RRSP. Amount for children born in 1992 or later Can be claimed by either spouse or shared between them Canada Employment Amount Not transferable Public Transit Amount Can be claimed by either spouse or shared between them Children's Fitness Amount  Can be claimed by either spouse or shared between them Home Renovation Tax Credit Amounts over $1,000 can be claimed by either spouse or shared between them       For more tax saving ideas, order Evelyn Jacks' Essential Tax Facts 2010 Edition.