The Importance of Provincial Budgets: Elbows Up and No Bracket Creep!

Some of the right things are happening in Nova Scotia, from the perspective of improving standards of living in that province.  And that’s important news because according to the Fraser Institute, Canadians have suffered the worst five-year decline in their standard of living over the 2020-to-2024 period since the Great Depression.  It notes, our Gross Domestic Product (GDP) per person decreased by 2.0% (0.4% annually) ; this despite aggregate GDP growth of 1.5% over the period.  Further, all ten provinces are experiencing stagnation, which is unique in our history.  So what’s the good news in Nova Scotia, at this critical juncture?

As Canadians face the prospect of higher spikes in COVID cases this fall, the financial fallout will be grim for millions who also face the loss of CERB and other safety nets that were available in the first wave of the pandemic. There are seven basic strategies advisors and clients can discuss now in anticipation of a 2020 tax year dominated by pandemic stress and a 2021 that may be characterized by more debt, and more tax audit potential:

Join some of Canada's leading Real Wealth Managers™ for a discussion about wealth preservation in these very uncertain times. It’s a  free virtual, national conversation that brings together advisors from the tax, bookkeeping, insurance, financial planning and legal communities to discuss true-to-life issues that require inter-advisory collaboration. Details below.

Michael Flux, Executive Vice President and Portfolio Manager at Connor, Clark & Lunn Private Capital Ltd. helps high net worth families and foundations reach their long-term financial goals by providing pension-calibre investment solutions. “My aspirational goal in life,” says Mike, “is to leave much good behind.”  He has recently enhanced his education to earn the MFA-P™ designation to help him in that quest.

Last month’s Knowledge Bureau Poll brought a surprising result from tax and financial professionals: 52% thought the extension of the Canada Emergency Response Benefit was a mistake. The 48% who agreed were more prolific in their comments, however. Here’s what you said:    

When someone in the family dies it is important to turn to the tax system to file any required tax returns  that may be outstanding and to claim specific tax benefits that can help to pay for end-of-life costs.   What are the rules for filing on time in this most unusual tax filing year?

As we reported in our last KBR, the new Canada Emergency Wage Subsidy (CEWS) was extended to include 9 Periods, but this extension brings some mind-numbing complexity with it.  Businesses can apply for the subsidy starting on Monday, August 17 for Period 5, which began on July 5 and runs to August 1. CRA has also developed a CEWS calculator and spreadsheet to help make the claim.  Here are the highlights of how it works: