Big Banks

‼️ key tax changes proposed in Canada's 2026 federal budget, particularly those affecting individuals and immigrants in Canada. quite a bit to unpack here. 😅 1. personal income tax filing deadlines • the filing and payment deadline for individuals would move from April 30 to May 15, including self-employed individuals who currently have until June 15 to file. • this would take effect from the 2027 tax year, meaning the first affected returns would be filed in 2028. 2. foreign asset reporting (T1135) • the reporting threshold for specified foreign property would increase from $100,000 to $200,000 in total cost, while the simplified reporting threshold would increase from $250,000 to $500,000. • this is particularly relevant for immigrants who own investments, rental properties or other specified assets outside Canada. • foreign income may still be taxable in Canada even where a T1135 is no longer required. 3. higher tax instalment thresholds • the threshold for individuals outside Quebec and corporations would increase from $3,000 to $7,500, while the threshold for individuals in Quebec would increase from $1,800 to $4,500, effective from 2028. • individuals whose primary income comes from business, professional or commission activities could make one annual instalment payment instead of four quarterly payments, subject to certain conditions. 4. changes to benefits and tax credits • a one-time Canada Groceries and Essentials Benefit supplement is proposed for early 2027, with maximum amounts of $223 per adult and $117 per child, subject to eligibility and income limits. • the Canada Caregiver Credit would become refundable from 2027, meaning eligible individuals could benefit even if they have no federal income tax payable. • the Canada Workers Benefit would be enhanced and renamed the Build Canada Workers Benefit from 2027. 5. more time to challenge CRA assessments • the general deadline for filing a notice of objection would increase from 90 days to one year after the assessment is issued. • for individuals, the deadline would be the later of one year after the assessment is issued or two years after the tax return filing deadline for the relevant year. • extensions beyond the applicable deadline would no longer be available. other notable tax proposals include: – moving expenses: an optional flat deduction of $1,000 for eligible relocations, subject to income limits. – CRA debt reporting: CRA could disclose certain outstanding tax debts exceeding $50,000 to credit bureaus once objection and appeal rights have expired or been exhausted. – capital gains exemption: a new exemption of up to $15 million for gains from qualifying business shares, subject to strict eligibility requirements. – tax penalties: significant increases to several administrative penalties, including additional penalties for certain repeated filing failures. – RRSP for life: a consultation on combining RRSPs and RRIFs into a single retirement savings arrangement, potentially removing the requirement to convert an RRSP at age 71. – medical expenses: optional flat amounts for certain qualifying medical expenses, including gluten-free food for individuals with celiac disease. it will be interesting to see how these proposals evolve as they move through the legislative process.