April 30 was the final day for Canadians to file their taxes. This year that date and the task seems heavier than usual. Recent conversations around taxation changes and wealth planning and a new government have many wondering what comes next.

 

Canadians, in particular those in or near retirement, are watching closely to see whether the next wave of tax policy brings relief, more complexity, or a fundamental shift in how financial success is treated in this country.

 

“There’s been a change of government,” says Faisal Karmali. “And this proposed capital gains inclusion rate, and all these tax changes, they're not in place.” He notes that while the previous government introduced a plan to increase taxes on capital gains, the election results have left their future uncertain. “They’re not in law yet,” he adds.

 

Still, the conversation around taxation is shifting. “They want you to spend your money down to the bone and then go into the Canada Pension Plan and Old Age Security system,” Faisal says. His concern isn’t just about numbers. It is about the long-term direction of Canadian tax policy and how it treats wealth built through investing, entrepreneurship, and planning.

 

Rob Gerrie sees it too. “We have clients who’ve done everything by the book for 20 or 30 years,” he says. “Now the rules change, and suddenly they’re being penalized for following them.”

 

For many single seniors, the tax system already feels stacked against them. Faisal says, “they don’t have the ability to income split, they pay a higher tax rate, they lose more benefits, and they don’t get access to as much support.” These issues add to the anxiety already felt by those navigating retirement in an uncertain environment. They also could be addressed by the new government.

 

One of the most contested pieces of the now-shelved proposal was the impact on family trusts. “If you're in a family trust, you have zero access to that $250,000 exemption. Zero,” Faisal explains. “You could be paying 67 cents on every dollar of gain on that property.” Even though the new government may reverse or revise those proposals, Faisal urges caution. “Stress test your plan,” he says. “Look at how the new rules affect you and your estate.”

 

Dave Popowich often says “everyone starts worrying about their taxes in February, but you should be planning for your taxes all year. That way you can take advantage of any opportunities to move your money around.”  Those opportunities may not be available when you’ve only got a few weeks to go before the tax deadline.

 

Make sure you seek out the advice of a tax expert, and your financial or wealth planner to see how that works with your overall retirement plan. As Dave likes to say, “don’t make financial decisions based solely on emotion.” Use the facts to help guide you through the retirement you so rightfully deserve.