Skip to main content

Featured

The Fed Decides Wednesday — Here's What It Means for Your Mortgage, the Loonie, and Your RRSP

  Monday, July 27, 2026 The U.S. Federal Reserve hands down its rate decision at 2 p.m. ET on July 29. For most Canadians it will feel like background noise. It isn't — here's the plain-language version of why it touches your mortgage, your cross-border spending, and whatever's sitting in your RRSP. The short version: Markets are pricing roughly a two-in-three chance the Fed holds its rate at 3.50%–3.75% on Wednesday. That's not the story. The story is that this is one of the least certain "sure thing" holds in years — and Chair Kevin Warsh's press conference at 2:30 p.m. ET could matter more than the decision itself. Why this meeting is different The Fed has held its benchmark rate steady at 3.50%–3.75% through every meeting so far in 2026. On paper, Wednesday should be more of the same. Under the hood, it's messier. Persistent inflation, running well above the Fed's 2% target for a fifth straight year, has kept a rate hike on the table. The oil-...
Post a Comment
Read more

article

Labels

Rising CRA Scrutiny: Four Audit Hot Spots Canadians Should Watch



Canadian taxpayers and business owners are facing a period of heightened enforcement as the Canada Revenue Agency (CRA) expands its audit activity. Recent shifts show a clear pattern: the CRA is leaning more heavily on data matching, AI‑driven analytics, and strengthened legislative powers to identify inconsistencies and pursue non‑compliance. Four areas, in particular, are drawing increased attention.

1. Inconsistent Revenue Reporting

The CRA is closely comparing GST/HST filings with corporate income tax returns, and mismatches are one of the fastest triggers for an audit. When sales reported for GST/HST don’t align with income tax filings, the CRA flags the discrepancy for review. 

2. Expense Claims That Don’t Match Business Activity

Expense claims that appear unusually high relative to revenue are under sharper scrutiny. The CRA is using benchmarking tools to compare businesses within the same industry, making outlier claims more visible than ever. 

3. Capital Gains Reporting

Even though proposed changes to the capital gains inclusion rate were cancelled, the CRA has significantly increased enforcement around capital gains reporting. This includes verifying the accuracy of reported dispositions, adjusted cost bases, and compliance with the 50% inclusion rate. 

4. International and Cryptocurrency Holdings

Expanded audit powers now give the CRA more tools to verify offshore assets, foreign income, and cryptocurrency transactions. These areas are a priority as new legislative proposals strengthen the CRA’s ability to demand information and penalize non‑cooperation. 

Why This Matters

The CRA’s audit posture for 2025–2026 reflects a broader shift toward stronger enforcement, supported by new compliance orders, penalties, and compulsory interview powers. Understanding these high‑risk areas helps taxpayers prepare, correct issues early, and reduce the likelihood of an audit. 


Labels:

Comments

Post a Comment