Record Number of Tax Returns Filed in 2026

It looks like tax season 2026 could be the biggest one we’ve seen in the history of filing in Canada, proving once more that Canadians are extremely tax compliant and that filing a personal tax return is the most important triggers for long term wealth planning in this country. But there is a shortage of qualified people and now is the time to do something about that before tax season 2027.

Tax year 2021 may represent the year millions of Canadians made a significant career shift and with that comes a new tax filing profile. Astute tax advisors will make it their business to consult with clients early, especially if new employment and self-employment trends hold true in their communities.

Are you working with small business owners who have received pandemic wage or rent supports?  Knowledge Bureau’s new Audit Defence: Managing Tax Risk for Small Business Owners is an online certificate course that helps advisors position small business owners for success for potential tax audits in 2021- 2023 with a concise pathway to navigate the complex rules and comprehensive documentation they will need to satisfy queries from clients and manage risk with the CRA.

At a time when many have lost their health, suffered the loss of their loved ones, their livelihoods and/or the exhaustion that threatens their resolve, we give thanks for the spirit of human resilience and kindness that emerges in every crisis.  It is important to remember that no matter how dark the clouds, we only need to get through the challenges of today to bring forward the bright promise of an incredibly vibrant tomorrow.  

Have you ever tried to explain the definition of earned income for RRSP purposes to a new client?  It is a daunting but important task, as clients who embrace the annual savings ritual can and will accumulate significant tax savings and as a by-product, significant financial wealth.   However, the astute tax or financial advisor, in the role of financial educator, can make all the difference in the end results.

Tinkering with tax reforms may not be in the best interests of Canada’s emerging new economy.   Rather, this may just be the right time for a significant holistic review, especially in anticipation of a variety of provisions recently announced in election platforms:  higher income taxes rates for some, a luxury tax and a wealth tax for others, a new minimum tax, or new capital gains taxes. Thoughts on tax change from experienced tax and financial advisors are important.  Here’s why:   

Prescribed interest rates have remained unchanged throughout the pandemic and will remain at 1% for the fourth quarter of 2021.  It’s a good idea to discuss this opportunity with clients well before year-end, while CRA’s prescribed interest rate for interspousal loans is still at this low level. It’s a tax planning ritual not-to-be-missed, especially with high net worth clients.