Commentary

  • Federal budget date set for March 22

    The federal Minister of Finance has announced that the 2011-12 federal budget will be brought down on Tuesday March 22. It is expected that the budget papers will be posted on the Department of Finance Web site at http://www.fin.gc.ca/fin-eng.asp, and the announcement of the budget date can be found on that Web site at http://www.fin.gc.ca/n11/11-019-eng.asp.

  • Bank of Canada maintains bank rate at current level

    In its March 1 interest rate announcement, the Bank of Canada chose to maintain the bank rate at its current level of 1.25%. The Bank noted on the domestic side that while the economic recovery in Canada is proceeding slightly more quickly than anticipated and consumption growth remains strong, there is evidence that household spending […]

  • Deficit stands at $27.4 billion for first three quarters of fiscal 2010-11

    The Department of Finance has released The Fiscal Monitor for the month of December 2010, summarizing federal government fiscal results for that month and for the first three quarters of the 2010-11 fiscal year. Overall, for the first nine months of the fiscal year, the deficit stood at $27.4 billion, as compared to the $39.4 billion […]

  • Inflation rate largely unchanged for January 2011

    Statistics Canada’s Consumer Price Index for the month of January indicates that consumer prices rose by 2.3% on a year-over-year basis, down very slightly from the 2.4% year-over-year inflation rate recorded for December 2010. The largest single contributor to inflation for both December and January was energy prices, which rose by 10.5% for December and […]

  • Federal government enhances consumer protection legislation

    The federal government has announced two new measures which will provide additional flexibility and/or protection to consumers of financial services. The first such measure will reduce the maximum cheque hold period for consumers and small- and medium-sized enterprises. The maximum hold period is currently seven business days for all cheque amounts. This would be reduced […]

  • CRA issues updated guide for Canadian residents “going south”

    The Canada Revenue Agency (CRA) provides a guide, P151(E), Canadian Residents Going Down South. That guide, which outlines the application of Canadian and U.S. tax laws to such taxpayers, as well as information on maintaining one’s provincial health care coverage, was recently updated and re-issued by the CRA.   The updated version of Guide P151E can […]

  • Unemployment rate for February unchanged at 7.8%

    Notwithstanding a net increase of 15,000 in the number of jobs, the unemployment rate for the month of February was unchanged at 7.8%. The net increase of 15,000 positions comprised a gain of 39,000 in part-time employment, offset by a decline in full-time work. Nearly all of the gain was in self-employment, with the number […]

  • 2011 Federal Budget—Children’s Arts Tax Credit

    The federal Budget tabled on June 6, 2011 included no changes to the income tax measures originally announced in the Budget on March 22, 2011. The proposed Children’s Arts Tax Credit, except for the definition of eligible activities, is similar to the Children’s Fitness Tax Credit. Where the latter applies to physical activities, the new […]

  • 2011 Federal Budget—Volunteer Firefighters Tax Credit

    The federal Budget tabled on June 6, 2011 included no changes to the income tax measures originally announced in the Budget on March 22, 2011. Effective for the 2011 and subsequent taxation years, the proposed Volunteer Firefighters Tax Credit will allow eligible volunteer firefighters to claim a 15% non-refundable tax credit, based on an amount […]

  • 2011 Federal Budget—Family Caregiver Tax Credit

    The federal Budget tabled on June 6, 2011 included no changes to the income tax measures originally announced in the Budget on March 22, 2011. The new Family Caregiver Tax Credit will provide a 15% non-refundable credit based on an amount of $2,000, beginning in 2012. Caregivers will be able to claim the enhanced amount […]

  • 2011 Federal Budget—Medical Expense Tax Credit for Other Dependants

    The federal Budget tabled on June 6, 2011 included no changes to the income tax measures originally announced in the Budget on March 22, 2011. Effective for 2011 and subsequent years, the Budget proposes elimination of the $10,000 limit on eligible expenses that can be claimed for a “dependant” relative in respect of the Medical […]

  • 2011 Federal Budget—Child Tax Credit Eligibility

    The federal Budget tabled on June 6, 2011 included no changes to the income tax measures originally announced in the Budget on March 22, 2011. Rules governing eligibility for the Child Tax Credit have been modified so that, where two or more families share a home, a parent who is otherwise able to claim the […]