Good morning,
Welcome to this week’s Canada Tax Update from AsraniCPA.
Here are the most important tax and benefit developments affecting Canadians this week.
🇨🇦 1. Canada Groceries and Essentials Benefit Starts Today
The new Canada Groceries and Essentials Benefit (CGEB) officially replaces the GST/HST Credit beginning July 3, 2026.
Eligible Canadians will automatically receive 25% higher quarterly payments over the next five years. No application is required—the CRA determines eligibility based on your filed income tax return.
What you should do:
- Ensure your 2025 tax return has been filed.
- Verify your CRA direct deposit information.
- Check your CRA My Account to confirm your payment details.
📋 2. CRA Review Season Is Underway
Following tax season, the CRA has begun issuing review requests for selected returns.
Common review areas include:
- Medical expenses
- Charitable donations
- Employment expenses
- Rental property expenses
- Investment income
- Foreign tax credits
Receiving a review letter does not necessarily mean you are being audited. Responding promptly with complete supporting documentation can help avoid reassessments.
💼 3. Mid-Year Tax Planning Can Save Money
Now is an excellent time for business owners to review their tax position before year-end.
Consider reviewing:
- Salary versus dividend planning
- Corporate tax instalments
- Shareholder loan balances
- Planned equipment purchases
- GST/HST compliance
Many valuable tax planning opportunities are only available before the end of the year.
📅 4. Don’t Ignore CRA Instalments
If you are self-employed, have rental income, investment income, or own a corporation, you may be required to make instalment payments.
Missing instalments can result in CRA interest charges even if your final tax balance is paid on time.
💡 Tax Tip of the Week
Create a secure digital folder for all 2026 tax documents—including receipts, donation slips, medical expenses, vehicle logs, and business invoices. Staying organized today can save time, reduce stress, and simplify any future CRA review.
Bottom Line
This week’s biggest development is the launch of the Canada Groceries and Essentials Benefit, providing increased quarterly payments to eligible Canadians. Combined with the start of CRA review season, now is the perfect time to organize your records and review your tax strategy.
Need quick tax answers?
AsraniCPA Virtual Tax Assistant
https://asranicpa.ca/tax-assistant/
AsraniCPA, Your Trusted Accountant
🌐 www.asranicpa.ca
📞 416-561-4041
📧 info@asranicpa.ca
