Opportunity: Canadian Dollar Stabilizes, Somewhat

Things have started to turn around for the Canadian dollar in the second quarter of 2025. It hit a 22 year low in January of 2025. Investors and property owners, who have been swooning at the high burn rate in their travel plans and property maintenance abroad, may wish to consider recent more positive trends and consider some risk mitigation opportunities now that the dollar is stabilizing somewhat.  

 Do you believe Canada’s tax system based, on self-assessment, has suffered under recent changes at CRA and by Finance Canada?  If so, what is the one wish you have for tax reform?  

Did you know that up to June 23, 2025, over 31.5 million Canadians had filed a T1 tax return? Over 7 million people are owing about $8000 to the CRA. The numbers are estimates, as CRA has not updated their website, however what is clear is that CRA has reduced the third quarter prescribed interest rates for Q3 – July 1 to September 30. That makes interest on money owing to CRA 1% lower – the lowest interest rate in fact since October 1 to December 31; the fourth quarter of 2022. Here are the new rates, some planning opportunities and a Summer of 2025 educational opportunity:

An educated population is a prosperous one and here in Canada, families have options to save for their children's post secondary education with generous tax assistance through the Registered Education Savings Plans (RESP) and its government matching programs, the Canada Education Savings Grant (CESG) and the Canada Learning Bond (CLB). Unfortunately, the uptake on most of these programs is low, relative to the overall population, and tax accounting and financial advisors can add significant value in a society focused on a prosperous future by turning this around. Here’s the opportunity:

Are more of your clients in the market for an Electric Vehicle? As the global shift toward sustainability gains momentum, Canadian individuals and businesses are increasingly turning their attention to electric vehicles (EVs). Not only do EVs offer long-term operational savings and environmental benefits, but Canada's tax laws also provide substantial financial advantages for business owners. This article explores the key benefits of integrating EVs as a business asset, with a focus on the tax-deductible expenses and financial incentives available in a Canadian context.

Are your clients owed money by CRA? As of March 31, 2025, the CRA holds about 10.2 million uncashed cheques totalling $1.7 billion. In your view, why is this happening? We put that question to our readers last months and as usual, their comments were insightful:

Periodically the Canada Revenue Agency (CRA) will embark upon a campaign with slogans to the effect that tax filing is simple. With over 20 years of experience in professional personal tax preparation - and still learning more every year – that’s perplexing as the majority of tax returns are far from simple. But completing an introductory tax prep course is foundational for everyone. It will maximize the relationship between the tax filer and the CRA, their financial pros and their investment decisions. Fortunately help is here, now.