According to numbers released by Statistics Canada there were, as of July 1, 2024, an estimated 2.5 million Canadians aged 65 to 69 and around 2 million Canadians who were between the ages of 70 and 74. That being the case, it’s likely that during the 2025 calendar year, hundreds of thousands of Canadians will reach the age of 71 and, for retirement income planning purposes, that is a very consequential birthday.
By the time summer arrives, Canadian taxpayers have filed their income tax returns for the previous year, have received a Notice of Assessment from the tax authorities with respect to that return, and have either saved or spent their tax refund or, less happily, have paid any balance of tax owing.
Two quarterly newsletters have been added – one dealing with personal issues, and one dealing with corporate issues.
While most Canadians are familiar with the obligation to file an annual tax return and to pay income taxes owed by the end of April each year, there are in fact many more tax filing and payment deadlines imposed on individuals or businesses throughout the calendar year. Fortunately, the rate of compliance with those requirements is high, as most Canadian taxpayers meet their tax obligations, consistently filing returns and making any required payments on a timely basis. Where such tax filing or payment obligations aren’t met, however, the Canada Revenue Agency has the authority to impose both penalties and interest charges.
The current trade and tariff dispute between Canada and the United States has affected individuals and businesses in virtually all provinces and industries. On an individual level, those most affected are often employees who work in industries (like steel and aluminum) for which the US tariff barriers are especially high, or those in businesses which import their raw materials from, or export a large percentage of their finished products to, the US. In such industries and businesses, layoffs and even business closures can be the result.
The work-from-home arrangements which were ubiquitous throughout the pandemic and, to a lesser degree, for a couple of years afterwards, are now largely a thing of the past for most Canadians. One of the consequences of the return to the office was the need for parents who work outside the home to arrange for (and pay for) child care – sometimes for the after-school period and sometimes for the entire day.
As of the end of May 2025, there were just under 202,000 properties listed for sale on the Canadian Real Estate Association’s Multiple Listing Service. While each of those properties and each property sale is different, all of them involve a move to a new location – sometimes a move up to a bigger and better property in the same town or city, sometimes a downsizing move, and sometimes a move to a new city or even another province. As well, earlier this year thousands of university and college students made the annual trek from their university or college residences or apartments to move back to the family home for the summer.
Most Canadians, understandably, think of our income tax system as a government “program” that takes money out of their paycheques and out of their pockets. And, while it’s certainly true that virtually every Canadian who earns an income must allocate a portion of that income to paying federal and provincial personal income taxes, that’s not the whole picture. Our tax system does, in fact, provide Canadians with a number of direct benefits, through a variety of tax credit and benefit programs which actually put money into the hands of Canadians. And since that money can be obtained with minimal effort (and be received tax-free) it’s a win-win for the recipient.
While it’s unlikely that they do so with any great degree of enthusiasm, the vast majority of Canadians prepare their annual tax return each spring and file that return on time. That’s necessary, because the Canadian tax system is a “self-assessing” one, in which the onus is completely on the taxpayer to ensure that a return in prescribed form is completed and provided to the tax authorities. On that return, the taxpayer provides a listing of income earned during the previous calendar year as well as any claims made for tax deductions and credits. The end result of that process is a determination of the amount of tax owed for the year; any such amount must then, of course, be paid on or before April 30.
By mid to late June 2025, most taxpayers have filed their tax return for the 2024 tax year and a Notice of Assessment has been issued by the Canada Revenue Agency outlining the Agency’s conclusions with respect to the taxpayer’s income, tax deduction, and tax credit claims and the amount of tax payable for 2024. Most taxpayers hope for (and in fact do receive) a refund while others are disappointed to find out that they owe additional taxes for 2024 and therefore have a tax bill (on which interest may be accumulating) to pay.
