July 27, 2025,

Dear Valued Clients & Friends,

We hope you’re enjoying the sunshine and some well-earned rest. While the weather’s heating up, so are changes in tax rules, government programs, and the economic landscape. In this issue, we break down recent CRA updates, share a quick economic and real estate snapshot, and show how our advisory services can help you navigate uncertainty and boost cash flow.

 

Thank You for Your Support!

 

Thank you for your continued trust in AR Jaffer Professional Corporation. We’re here to support you every step of the way as you continue to build your net worth!

We’re proud to continue growing and evolving — and that’s only possible because of your continued trust and loyalty. It truly means the world to us.  If you’ve appreciated our service and have a moment, we’d be incredibly grateful if you could leave us a Google Review. Your feedback not only helps others find us — it helps us improve and serve you even better.

 

Leave us a quick review here: AR Jaffer Professional Corporation Chartered Professional Account Google Review

 

Thank you again for being part of our journey.

Let’s get started with our summer edition of our newsletter!

 

Here are some topics that I will be discussing:

1. Canada Carbon Rebate for Small Businesses – Tax Free!
2. CRA Communications for Businesses – Electronic Transition
3. 2024 Personal Income Taxes Update & 2025 Planning
4. Income Tax Reviews & Audits
5. Canadian Economic & Real Estate Snapshot
6. Personal Financial Health Check & Mid Season Financial Tips
7. Advisory, Tax Planning and Cash Flow Planning
8. Stay Connected!

 

If you have missed any editions of the newsletter, please click on the following link:  AR Jaffer PC Newsletter Archives

 

We have been working very hard in providing personal tips & accounting, tax, and business content on social media.    Please connect and follow the links to my social media at your convenience (Facebook, Twitter, LinkedIn, Instagram) to stay fully updated on CRA Updates and tax planning tips for individuals & businesses.

 

1. Canada Carbon Rebate for Small Businesses – Tax Free!

The Federal Government has confirmed that Canada Carbon Rebate for Small Businesses (CCRB) payments will be tax-free across all fuel charge years from 2019–20 through 2024–25. Businesses will not be required to include these payments in taxable income. Additionally, the Government has introduced an extended filing window.

 

Here is a link to further details  https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/corporations/business-tax-credits/canada-carbon-rebate-small-businesses.html

 

Businesses that filed their 2023 corporate income tax return between July 16 and December 31, 2024, will still be eligible to receive retroactive payments for the 2019–20 to 2023–24 fuel charge. Businesses that filed their 2024 return by July 15, 2025, will qualify for the final CCRB payment covering the 2024–25 year.

 

2) CRA Communications for Businesses – Electronic Transition

What Is Changing?

As of June 16, 2025, the CRA began sending most correspondence to existing and new business owners electronically via the My Business Account.   The Canada Revenue Agency (CRA) has changed its default communication format from mail to electronic communication for all businesses. The CRA will no longer by default send most correspondence by paper mail. Instead, letters, statements, and notices will be delivered electronically through My Business Account, with email notifications issued when new items are available.

 

Key Implementation Dates:

• May 12, 2025 – Online mail became the default for newly registered business numbers and program accounts (e.g., GST/HST, payroll, corporate income tax).
• June 16, 2025 – Online mail became the default for existing business accounts, including those accounts managed by authorized representatives via Represent a Client.

 

How Business Owners Should Prepare:

To ensure a smooth transition to the CRA’s online mail system in 2025, business owners are encouraged to take the following steps:

• If you already receive CRA communications digitally, no action is necessary, but confirm you have access to your My Business Account.
• Register for My Business Account, if not already enrolled, to enable access to CRA correspondence electronically.
• Make sure your email address is in your account and up to date
• Check your CRA account regularly to avoid missing time-sensitive notices, statements, or requests.

 

Requesting Paper Mail

• If you would like to receive your correspondence by paper mail, you’ll need to make a request to activate paper mail. The request can only be made by an individual with signing authority such as an owner or director or legal representative.
• You must keep your mailing address up-to-date to ensure you receive all correspondence. Any undeliverable mail will result in a change back to online mail. To keep receiving paper mail, you’ll need to make a request to activate paper mail every two years.
• Starting May 12, 2025, paper mail can only be requested in one of two ways:
• In the business account of your CRA account
• Fill out and mail form RC681 – Request to Activate Paper Mail for My Business

 

Exceptions

• Existing businesses not registered for My Business Account through the business owner or that do not have an authorized representative (via Represent a Client); Charities; Non-resident businesses that do not have an owner or director that is a Canadian resident, and do not have access to My Business Account through a representative will continue to receive their CRA correspondence by paper mail.
• For more information, go to Online mail for business – Canada.ca

 

Benefits of going digital:

CRA’s digital services make handling your business tax matters faster and easier. You and your authorized representatives can file, pay, and access detailed information about your tax accounts. Switching to online mail ensures a more efficient, secure, and eco-friendly approach to handling your businesses tax obligations. By using the CRA’s digital services, businesses can:

• enable quicker communication with the CRA, making it easier to get updates and support
• receive earlier confirmation for tax information
• manage business taxes quickly and easily from a computer or mobile device
• help reduce paper use, contributing to a cleaner and greener future by cutting down on waste

 

If you require assistance, AR Jaffer Professional Corporation is here to help your business navigate this transition. If you need support with registration, CRA access, or understanding these changes, please reach out to us!

 

3) 2024 Personal Income Taxes Update & 2025 Planning

As the 2024 personal tax and sole proprietorship tax deadlines have recently passed, you should have received your notice of assessments.  If you have not filed your returns yet, you can still send us the documents as it is always better to file even if the tax returns are filed late to avoid your account being flagged or subject to an audit (to be discussed further in the next section).  If you have any questions, please contact us.

 

2024 Tax Review

Here are some notable items to review from 2024:

• Please send us a copy of your 2024 notice of assessment for our review or if you have any questions.
• If you had a tax payable, please ensure you have made the payment to avoid interest charges.
• If you do not have a CRA My Account, please register on the CRA website.  Here is the link:  https://www.canada.ca/en/revenue-agency/services/e-services/e-services-individuals/account-individuals.html
• Please ensure your address and direct deposit information is up to date with CRA.  You can update it directly through your CRA My Account.

 

2025 Tax Preparation

Please also remember to review the following to avoid interest and optimize your tax position for the remainder for 2025:

• Installments:  If your tax payable in 2024 was greater than $3,000, you are required to make tax installments in 2025.  CRA will send you a letter on your CRA My Account with details.
• RRSPs:  Please continue making 2025 RRSP contributions.  It is suggested to make monthly RRSP contributions rather than a lump sum on the Mar 1, 2026, deadline for optimal cash flow planning.
• Prepare a digital folder for your 2025 tax slips (common items include medical receipts, donation receipts, RRSP contributions and all your T3, T4 and T5 slips).  These can then be uploaded on our portal early in 2025.

 

If you have any questions about your 2024 assessments, our team is here to help.

 

1. Income Tax Reviews & Audits

As The CRA generally does not require much supporting documentation in the initial tax e-filing, they often send a letter for a ‘review’ to validate the information that has been submitted. Reviews are generally routine and should not cause any panic if you do receive a letter in the mail.  Reviews could require documentation from as far back as six years.  A review normally requires the taxpayer to respond within 30 days. Typical areas that are investigated are as follows:

1. Child care receipts
2. Support payments to an ex-spouse
3. Tuition receipts
4. Donation receipts – ensure that the donations are made through a registered Canadian charity
5. Flipping of investment properties
6. Sale of a principle residence or rental property
7. Allowable business investment loss (ABIL)

 

On the other hand, an ‘audit’ can occur from time to time if amounts filed do not match CRA’s records or if a taxpayer in continuously late in filing.  Common reasons for an audit are as follows:

• If you file a ‘nil’ or ‘zero’ tax return.
• Audits are also chosen based on the taxpayer’s risk assessment or past filing history.
• Not filing tax returns consistently.   We recommend filing tax returns on time to avoid penalties or potentially being audited.
• Net worth or lifestyle audit.  CRA reviews a taxpayer’s lifestyle and income filed to determine if their account could potentially be flagged.

 

 

The recommendation is to keep all paperwork for 6 years, file on time and file accurately to avoid a CRA audit.  We are available to guide you if you receive any letters in the mail.

 

1. Canadian Economic & Real Estate SnapshotThe Canadian economy has narrowly avoided recession, thanks to moderating inflation, improved consumer confidence, and cautious rate cuts by the Bank of Canada. However, economic growth remains fragile and uneven across sectors and regions.

 

Key Highlights

• Interest Rate Cuts Have Begun – The Bank of Canada held its benchmark interest rate at 2.75% in June, maintaining the prime rate at 2.75%, following a period of sustained 5.0%+ rates. Further reductions are expected through fall, but any cuts will be gradual.  While this offers some relief on borrowing costs, lenders are remaining cautious, and access to credit is still tight.
• Inflation Easing – Headline inflation sits around 2.4%, down from the 2022–2023 highs. That said, food, insurance, and rent costs continue to increase in many regions.
• Consumer Spending is Recovering Cautiously – Households are still digesting the impact of higher borrowing costs and have reduced discretionary spending — a factor impacting retail, hospitality, and services.
• Labour Market Tightening Slightly – Job vacancies are declining modestly, but wages remain strong, especially in professional services and skilled trades. Employers are advised to budget for competitive compensation.
• Real Estate: Stabilizing, But Challenges Remain

 

Residential Market:

• Sales Volumes Up Slightly, Prices Stabilizing:
  In most major markets (Toronto, Vancouver, Calgary), prices have stabilized after a correction in 2023–2024. Many first-time buyers remain priced out, but investor activity is resuming cautiously.
• Variable Mortgage Renewals Are Pain Points:
  Many homeowners and small landlords are renewing at rates that remain 2–3% higher than their original terms, creating cash flow stress.
• Rental Demand Remains Strong:
  High immigration levels and a lack of new housing supply continue to push up rents, especially in urban cores. However, rising property taxes and insurance premiums are eating into net yields.

Commercial Real Estate:

 

Office Space Still Struggling:

• Residential prices in major cities are stabilizing but not crashing. Investors and buyers remain cautious, and commercial property continues to face challenges — particularly in office space.
• With many employers pushing for a return to work in the office, this may put upwards pressure on commercial lease and sale prices.
• Vacancy rates in downtown office markets remain high due to hybrid work and corporate downsizing. However, suburban and flex-space demand is showing resilience.
• Industrial and Warehousing Still Hot:
  Logistics, distribution, and e-commerce continue to drive demand for industrial space, especially around GTA, Vancouver, and Montreal corridors.

 

• What This Means for Your Personal, Business or Investments – Now is the time for deliberate financial planning, especially around:
• Cash Flow Stress Testing
  If you have debt or upcoming renewals, review your projections with 6–12 month rate scenarios.
• Tax & Capital Cost Optimization
  Explore accelerated CCA, timing of equipment purchases, or incorporation strategies to defer or reduce tax.
• Real Estate Advisory
  If you’re holding or acquiring property, we can help with cash flow modeling, HST implications, and interest deductibility assessments.
• Salary vs. Dividends
  With inflation and real estate exposure top of mind, make sure your owner-remuneration strategy is protecting your personal liquidity and long-term planning.

 

If you own rental properties or are considering investing, cash flow planning is critical.  See our advisory services at ARJ Advisory Services

 

How We Can Help

At AR Jaffer Professional Corporation, our advisory team is ready to help with:

• Business performance reviews
• Real estate portfolio analysis
• Debt service projections
• T2 & T1 tax optimization
• Cash flow forecasting
• CRA audit readiness
• GST/HST review on property transactions
• GST/HST Rebate Applications

 

Ask Us: We offer rental property profitability reviews, financing strategy support, and investment planning.  We also work very closely with a Landlord Coach, tailored for investors who own and manage rental properties.

 

1. Personal Financial Health Check & Mid Season Financial Tips 

At mid year, we recommend a cash flow plan, budget, or tax plan to be prepared to ensure you are able to plan for your net worth and eventually for retirement.  At a minimum, this should be prepared once every 5 years and then updated annually as your personal and financial situation changes.  We refer to this as a Financial Health Check.  Please contact us if you require further details on how we can assist you with a Financial Health Check for your personal or business planning.

 

Here are my top 10 recommendations on a mid year Financial Health Check (note that these are general recommendations, and it is best to speak to a professional prior to making any decisions on changing your mortgage or investment situation) :

1. Review Your Budget: Mid-year is perfect for revisiting your budget. Analyze your spending patterns and adjust your allocations as necessary.
2. Tax Planning: Consider potential tax-saving opportunities, such as contributing to retirement accounts or making charitable donations. Staying ahead of tax planning now can save you from a year-end scramble.
3. Investment Check-In: Review your investment portfolio to ensure it aligns with your long-term goals. Consult with your financial advisor if you’re considering adjustments.
4. Prepare for Year-End: Start gathering necessary documents and information for year-end financial reporting. Early preparation can ease the stress as the fiscal year wraps up.
5. Business Forecasting: If you’re a business owner, reassess your forecasts and goals. Adjusting your strategy now can set you up for a strong finish to the year.
6. Pay down your highest interest rate loans first.
7. Consider refinancing to potentially lock in your rates.  An early renewal may be the key to secure a lower rate before the next interest rate increase.
8. Prepare an annual budget and cut down unnecessary costs.
9. Evaluate larger purchases and defer them into the future (eg. Car purchases, large renovation projects, high budget vacations).
10. Consider looking at new investments:
    1. Stock markets are volatile and are up and down lately so there may be some good bargains to be sought out
    2. Crypto markets are also very volatile (please tread carefully here as crypto is still considered a new type of investment strategy)
    3. Real estate markets are also down, but may still be expensive given the high interest rates

 

Navigating both inflation and interest rates can be complex. For this reason, it is extremely important to have a Financial Health Check in place and ensure that tax, investment, and cash flow strategies reflect your long-term goals.

We have some excellent planning tools on our website to help get you started with a Financial Health Check.  Click ARJCPA Financial Tools for more information.

 

1. Advisory, Tax Planning and Cash Flow Planning

Our team at AR Jaffer Professional Corporation, offer Advisory Services That Drive Business Growth. As part of our commitment and service delivery, we have been working with our clients on various advisory opportunities.  We’re more than just accountants — we’re your partners in business success. Here’s how our expanded advisory services can help your business thrive through summer and beyond:

1. 1. Cash Flow & Forecasting

• We create detailed cash flow projections so you can manage payroll, debt, taxes, and seasonality — especially in slower summer months.
• Scenario planning (e.g., “What if I lose a major customer?” or “Can I afford to hire?”)

1. 1. Controllership & Financial Oversight

• Monthly reporting and performance tracking (KPIs)
• Budgeting, profitability analysis, and cost control
• Helping you act like a CFO — without hiring one full-time

1. 1. Business & Tax Strategy

• Salary vs. dividends planning
• Asset purchases and financing advice
• Tax optimization and timing of expenses
• GST/HST compliance checks and filing strategies
• Tax Planning and Corporate Restructuring (Holding companies, Estate Freezes, Trusts)

1. Incorporation & Growth Planning

• Is it time to incorporate? We’ll model your tax savings and legal protection.
• Expanding to a second location or hiring? We’ll help you plan cash flow, structure, and HR cost implications.

1. 1. Business Financing which includes
   2. $100k BDC working capital loan application. This is the most popular and easiest application process.
   3. Bank loan proposals & applications
   4. Lines of credit applications
   5. Preparation of business plans and cash flow projections
   6. Life Insurance Planning Strategies
   7. Net Worth Analysis and Planning
   8. Strategies to achieve your short term and long-term goals

 

 

Let me know if you have any questions on these strategies and we can set up a call or meeting.

 

Please see our website for further details at https://www.arjcpa.ca/business-advisory-services/

 

You can also contact us at 905-629-7720 or Ali Raza at ajaffer@arjcpa.ca

 

Thank you for being a valued part of the AR Jaffer family. We look forward to continuing to serve you in the months ahead.

 

Have a safe, healthy, and restful remainder of the summer!