Should Deposit Insurance Be Raised from $100,000?

The Canada Deposit Insurance Corporation’s (CDIC) deposit protection is automatically applied when investors deposit money with a member bank or credit unions.  The object is to protect depositors should a bank fail.  The good news?  There has not been a deposit insurance payout in almost 30 years.  But now the framework is under review and both advisors and their clients may wish to weigh in, in particular because the deposit insurance limit is currently only $100,000 in specific deposit categories. 

Okay, we admit, it’s a stretch, but we wanted to hop into the spirit, and surprise you, our Knowledge Bureau Report readers, with a tuition treat to celebrate the long weekend!

The Canada Emergency Wage Subsidy (CEWS) program is set to end on June 15, 2021.  Has it been a success?  It depends on your perspective.  Last week, a Performance Audit on this program and the Canada Emergency Response Benefit (CERB) was completed by the Auditor General of Canada and the findings do raise eyebrows.

Taxpayers who are filing 2020 tax returns and need to report a move to a new address will have a new hurdle to overcome in changing their address with the CRA.  This is due to the cyber security incidents dating back to August of 2020.

Close to 7 million people have already filed their returns and so far it looks like this tax season should be business as usual.  Right now, the average tax refund is $1,825, the average amount due is $3,196, and when it comes to meeting tax deadlines, there is no indication that tax filing deadlines will be extended. In our March opinion poll, tax and financial pros agree with this, particularly when it comes to instalment payments.  Specifically, 60% of poll respondents feel that further postponement of taxes due would not be appropriate. Here are two noteworthy comments:

April is a month full tax milestones with the pinnacle being the April 30 tax filing deadline for individuals.  Note that for businesses, the final application deadline for Canada Emergency Business Accounts (CEBA) loan ended March 31. Here’s a handy tax milestones calendar from Knowledge Bureau for the month of April, excerpted from the Knowledge Bureau Advanced Tax Update Course. 

Old Age Security (OAS) and Guaranteed Income Supplement (GIS) benefits are indexed quarterly, but the formula for OAS increases is based on increases to the Consumer Price Index.  When the CPI drops, OAS payments remain constant for the subsequent quarter, as they did in the first three quarters of 2020.