Achi news desk-
Deputy Prime Minister and Finance Minister Chrystia Freeland presents the federal budget in the House of Commons in Ottawa on April 16.Adrian Wyld/The Canadian Press
Caught up on a week that went away? This is your weekly roundup of the Globe’s most essential business and investment stories, with insights and analysis of the pros, stock tips, portfolio strategies and more.
Federal budget 2024: New taxes, housing affordability and open banking
Finance Minister Chrystia Freeland unveiled the 2024 federal budget this week, detailing $53-billion in new spending over five years. The budget included a series of economic investments in housing, artificial intelligence, defence, indigenous communities, community health and safety and more. One of the biggest surprises was an increase in the inclusion rate on some capital gains, which will come into force on June 25. The government says it will boost revenue by raising taxes on the wealthy but experts warn it could also hit some middle class taxpayers. . The budget also revealed that Ottawa tapped financial consumer watchdog the Financial Consumer Agency of Canada to administer and enforce open banking legislation.
Canada’s inflation rate rose to 2.9% in March, boosted by higher gas prices
Canada’s annual inflation rate ticked higher in March, boosted by higher prices for gasoline. The Consumer Price Index rose at an annual rate of 2.9 per cent last month, up from 2.8 per cent in February, Statistics Canada said Tuesday in a report. The result was in line with Bay Street expectations. Several measures of core inflation – which strips out the volatile components of the CPI – continued to slow in March. Matt Lundy reports that Canada looks increasingly set to cut interest rates before the US. Traders have increased their bets that the Bank of Canada will start cutting interest rates in June or July, barring any surprises in next month’s CPI report.
Move over boomers, Gen X is raking in
Data from Statistics Canada reveals that Gen X, which includes those born between 1965 and 1980, is overtaking all other generations when it comes to average net worth. On the other hand, Millennials were the only demographic group to see their net worth shrink over the past year. The handing of the wealth baton from baby boomers to Gen Xers was driven by a combination of financial assets as well as real estate, Jason Kirby reports in this week’s Decoder.
Six arrested in a gold and cash heist at Pearson airport in Toronto
Police say they have solved the biggest gold heist in Canadian history after arresting six people and issuing warrants for three others. The nine, which include two Air Canada employees, are accused of taking part in a theft of $20-million in gold bars and $2.5-million in foreign currency at Toronto Pearson International Airport a year ago. The multi-jurisdictional investigation found that the suspects had sold the gold to import firearms into Canada. Police seized six bracelets worth $90,000 and $430,000 in cash and smelting equipment, but have not found most of the gold. “We believe the gold has been melted down [for] the international market,” Det. Sergeant. Mavity said. The investigation continues on several fronts, according to Eric Atkins.
Shoppers pharmacists file proposed lawsuit against Loblaw over corporate practices
Shoppers Drug Mart pharmacists have filed a proposed class action lawsuit against the company and parent company Loblaw Cos. Ltd. The Ontario pharmacists group claims the company breached franchise agreements by enforcing “unethical” corporate practices such as reducing support staff hours, setting targets on the number of medication reviews and naming the public and shaming pharmacists who failing to meet performance targets or quotas. A Loblaw spokesperson told The Globe and Mail that “there is absolutely no merit to the class action” and that the company “intends to vigorously defend it,” Clare O’Hara and Chris Hannay report.
Office of taxpayer ombudsman reviews CRA conduct over bare trust rules
The Office of the Taxpayer Ombudsman is reviewing whether the Canada Revenue Agency violated taxpayer rights when dealing with new tax rules for trusts, Erica Alini reports. This is the latest development in the mess that saw CRA scrap the complex reporting obligations just days before the filing deadline. The ombudsman’s office, which is “conducting a preliminary investigation,” said it had received many expressions of concern from taxpayers and their representatives. The deadline for filing taxes in Canada for 2024 is April 30. The Globe has plenty of information on how and when to file on our tax tips page.
This week’s federal budget raised taxes on:
a. Dividends
b. Legacies
c. Income
d. Capital gains
d. Capital gains. Ottawa is changing the rules on capital gains for the first time in 25 years by raising the inclusion rate – the portion of capital gains that must be taxed. The inclusion rate will rise from half to two thirds on capital gains realized by companies. The higher inclusion rate will also apply to individual taxpayers but only on capital gains over $250,000.
Now that you’re all caught up, test your knowledge with our weekly business and investment news quiz and prepare for the week ahead with the Globe’s investment calendar.
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After Federal budget capital gains changes, Toronto gold arrests and Canada’s inflation rate: Business must-reads and … – The Globe and Mail appeared first on Canada News Media.
