Claiming Medical Expenses: Free Healthcare?

Free Health Care? Did you know that Canadians spend on average more than $1,000 on medical expenses each year? It’s estimated that government programs, via our taxes, cover about 72% of medical expenses, which means that we pay for the rest. Your clients may be over-paying on their taxes because they don’t know about medical expense deductions. 

We hope that you’re enjoying your summer holidays. Please note that our editorial team is on summer break, too. Knowledge Bureau Report will return August 12. However, our dedicated Educational Consultants are busy at work for those of you who wish to start Summer School online before the end of the month.

On July 17, 2020, a redesigned Canada Emergency Wage Subsidy (CEWS) was proposed with substantive changes over previous periods and the new rules are very complex. The good news is that the program has been extended to December 19, 2020 and potentially all businesses with a revenue loss over 0% could qualify for a wage subsidy.   

Between a rock and a hard place. That could well describe how Canada’s suffering business owners feel about the complete lack of direction that followed Monday’s announcement that the Canada Emergency Wage Subsidy (CEWS) has been extended until December 2020. It’s meant to help restart the nation’s economy, but you won’t find a single reference to this on CRA’s website as of today. Here’s why that’s a very big deal:

Business owners remain financially stranded in Canada.  According to a new survey by the CFIB, 33% of business owners have had to dip into their personal savings just to stay afloat during the pandemic crisis, 26% of them have had to increase credit card debt, and 8% of them tapped into their retirement savings early. That scenario is bolstered by a July 15 survey from Stats Canada which confirms the extent of the financial burden borne by business owners. A continued lifeline is critical to clinch Canada’s economic recovery.

On July 2, the government released draft legislation to temporarily change some of the rules around salary deferral leave and Registered Pension Plans. Here’s what you need to know:

Need some positivity in your life? The  new Bank of Canada Governor, Tiff Macklem announced yesterday that the benchmark interest rate would remain 0.25% (where it’s been since March) and will do so until the 2% inflation target is reached, which might take at least two years, according to their Monetary Policy Report.  But there is more good news: