Finance Canada Releases Draft Legislation January 29

February 27, 2026 is the last date to comment on a raft of draft legislation released at the end of January covering provisions from the November 4, 2025 Federal budget,  the Fall 2024 Economic Statement, amendments from Budget 2021 regarding Hybrid Mismatching Arrangements, technical changes to two investment tax credits, dating back to 2022 and 2023, as well as corporate changes regarding the Global Minimum Tax.  The key measures to note appear below:

In Canada, as in many advanced economies, the age group that grew the fastest in recent years was those aged 65 and over. That’s not pandemic-related, it’s simply the aging of the baby boomers. Those over 65 tend to have the lowest labour force participation rate, and that has been pulling down the growth of Canada’s labour force in recent years, according to recent remarks by Tiff Macklem, Governor of the Bank of Canada. In addition, many small businesses in Canada are owned by Baby Boomers.  There’s a potential problem if Baby Boomers own a business and plan to use the money they’ve invested to pay for their retirement years.

Nothing like a positive headline to grab your attention.  The Financial Post article goes on to say: It’s been a miserable year for the global economy. And things could get worse with a mild recession potentially on the horizon. In an extreme downside scenario, this could wipe out US$5 trillion in global output, according to Bloomberg Economics. So, what to do?

There is no doubt your clients are interested in knowing how to inflation proof and recession-proof their wealth and navigate successfully through emerging risks from the CRA. To accomplish the former, advisors must have broader knowledge on upcoming tax changes and how astute investment planning in a very new economic environment can help clients maximize after-tax income and reduce capital erosion.

Our economy is shrinking and we can’t avoid that.  This was the hard truth Canada’s Finance Minister delivered in her November 3, 2022 Fall Economic Report and Mini-budget, which was followed the next day with Explanatory Notes to a 169-page Ways and Means Motion that amends the Income Tax Act for new measures.  A brief synopsis of the economic issues follows.  Be sure to request a copy of the Knowledge Bureau Special Report; also enrol now to attend the Nov. 16 Annual Year End Tax Update for in-depth details for professional advisors. 

Taxes and source deductions will continue to rise despite last week’s grim economic forecasts from the Finance Department. Here is what’s in store based on forecasting in the Fall Economic Report, released November 3.

New taxes are on the horizon for high net worth individuals. While several new tax measures were introduced in the November 3 Mini Budget, many have been created to propel forward defined economic incentives for businesses.  Of special note: residential property flipping is getting more expensive. A synopsis follows.