Dec 31 2024

Q4 Newsletter 2024

Q4 Newsletter 2024
Do I Charge GST on That?
Confused by all the changes the government keeps making? Wondering how it impacts your life or business? Dive into this quarters newsletter for more information.
What Happened to GST
GST is a fact of life for Canadians, we pay it on most everything and the stuff you didn't pay it on was pretty consistent (medical, insurance, banking, some grocery items, etc.). With the changes proposed by the Federal Government, that all goes topsy turvy for the next two months. As of December 14th the Federal Government has cancelled GST on select items primarily targeted around holiday shopping and spending. For individuals this is likely a positive as your life should get a little cheaper (theoretically) but for businesses this created a bigger headache as you now have to reassess your product/service mix and update your GST applicability. We've rounded up the relevant news and articles to help you process that as well as news surrounding the Fall Economic Statement.
This is the official GoC page for the GST/HST break. It goes over the affected products and answers some common questions. Key among them is the note that if someone charges you GST in error you should request a refund of the GST from them and if they don't pay it then you would go through the rebate process.

The GoC also included the following statement in a news release on December 13th which should put many business owners at ease although there is never a guarantee with the CRA:

"The Canada Revenue Agency (CRA) will take a practical approach to compliance. We will dedicate our efforts towards situations in which businesses willfully and egregiously refuse to comply with the temporary measures, such as those who collect GST/HST but do not remit it to the CRA. Businesses who make reasonable efforts to comply with the legislation will not be the focus of our compliance actions."
This is a good dive into the GST break and helps address questions and concerns. For many small businesses this may be too challenging to implement.

Their main takeaway: This temporary GST/HST break is intended to provide significant financial relief for Canadians during the holiday season. However, most businesses will find it challenging to implement this temporary measure. Affected businesses should be prepared to act quickly once the legislation has been introduced in Parliament and the government provides additional guidance.
This is an interesting look into the first week after the tax break was implemented. Unfortunately many of the issues noted by observers and professionals are repeated by business owners and there is little optimism this change will impact profits in a measurable way.
Fall Economic Statement
The Federal Government released their Fall Economic Statement which was overshadowed by the resignation of Deputy PM and Finance Minister Chrystia Freeland. You can read the official statement below along with analysis by TD and BMO. The government is off for a Christmas Break and won't be back to sitting until late January but it's expected there will be more fireworks before then and many people are bracing for a leadership change and/or election.
This is the official Fall Economic Statement from the Government of Canada. It's dense and full of government PR so it may not be for everyone.
This is the analysis and summary from BMO's economists if you don't want to read through the official statement.
This is the analysis and summary from TD's economists if you don't want to read through the official statement.
Other News
Today, the Honourable Dominic LeBlanc, Minister of Finance and Intergovernmental Affairs, along with the Honourable Élisabeth Brière, Minister of National Revenue, announced that the federal government intends to amend the Income Tax Act to extend the deadline for making donations eligible for tax support in the 2024 tax year, until February 28, 2025. 
The Alberta government has kept some survey results secret following requests from Postmedia while ignoring the results of other public engagements. 
The most common question right now has been what will happen to the capital gains inclusion rate if the government falls.
Today, the Department of Finance Canada announced the automobile income tax deduction limits and expense benefit rates that will apply in 2025.

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