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Banks Boost Bad Loan Provisions

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Four of the top five Canadian banks have reported lower-than-expected earnings for the second quarter. These results have been driven by higher provisions for bad loans and increased inflation that had driven up costs. Some banks have also been impacted by slow loan growth, particularly in mortgage facilities. National Bank…

Bank of Canada Worried by Mounting Household Debt

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With mortgage rates expected to be renewed at higher levels in the coming years, the Bank of Canada is worried that many households that are overly burdened by debt may not be able to absorb the financial shock. The issue of growing household debt loads was a recurring theme in…

Inflation Slows To 5.2 percent

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Statistics Canada has reported that the country’s inflation rate cooled to 5.2% in February. This is the largest single-month deceleration since April 2020. It fell from 5.9% recorded in January and is at its lowest level in 13 months. It is also lower than many analysts’ prediction of a 5.4%…

Bank of Canada Holds Key Rate Steady

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The Bank of Canada has announced that it will maintain its policy rate, with the overnight rate at 4.5%, the bank rate at 4.75%, and the deposit rate at 4.5%. The Canadian dollar fell against the US dollar following the announcement to a four-month low, trading at 72.54 US cents.…

Vancouver Approves New 10.7 percent Property Tax Hike

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Vancouver has just approved a 10.7% increase in property taxes as part of the operating budget for 2023. This increase came just a week after city staff proposed a lower 9.7% hike. Unexpectedly, during the first public meeting to discuss the budget this week, the council went ahead to approve…

Foreign Property Tax Stirs Criticism

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At the start of the year, a new federal property tax rule came into effect, banning non-Canadians, non-permanent residents and foreign companies from buying non-recreational residential property in the country for the next two years. This new tax rule and the underused housing tax (UHT) which is a 1% annual…

Taxpayers Put On Alert As Tax Season Begins

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With tax season around the corner, it comes as no surprise that online tax scams are on the rise. Not only are incidents up, but so too is the sophistication of the scams. Many of the scams work on the pretence that communication is coming from the Canada Revenue Agency…

Cost Pressures Key Concern for Small Businesses

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The Office of the Superintendent of Bankruptcy has reported that insolvencies in 2022 rose by 37.2% compared to the previous year. The number of business bankruptcies and debt settlement proposals also rose over the same period. The Canadian Federation of Independent Business (CFIB) has confirmed that only half of its…

Accounting Firms Using Stay Interviews to Retain Employees

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Recent publicity over the shortage of accountants in the US has brought to light efforts that Canadian accounting firms can make to better retain their employees. Stay interviews have become a recommended option that has been highlighted by a recent publication in the Journal of Accountancy. With accounting having been…

CRA Faces Strike Votes Over Return to Office Demands

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The Union of Taxation Employees (UTE), which represents some 35,000 Canada Revenue Agency (CRA) employees, has expressed disappointment with the tax body’s move to file a labour practices complaint against them with the Federal Public Sector Labour Relations and Employment Board. The CRA is claiming that the union is not…