5 BULLET FRIDAYS - Tax Mechanic News, Tips & Strategies

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Unmasking Efficiency - The CRA Moves Business Registration Fully Online

As autumn shadows lengthen, a quiet transformation brews within Canada’s business landscape. Beginning November 3, 2025, the Canada Revenue Agency (CRA) will transition fully to online registration for all new Business Numbers (BNs) and CRA program accounts. The familiar ritual of calling the Business Enquiries line will fade into history, replaced by a more seamless and secure digital experience through Business Registration Online (BRO).

A Streamlined Future for Business Registration

The move aims to simplify compliance while modernizing service delivery. Through BRO, businesses can:

• Register a new BN or CRA program account

• Add accounts to an existing BN

• Receive instant confirmation of registration details

This digital-first model offers speed and convenience: registration is available 21 hours a day, 7 days a week, with real-time confirmation and no time spent on hold.

When to Step Out of the Shadows

While most businesses can complete registration online, certain cases still require direct CRA contact, including:

• Reactivating a closed program account

• Registering businesses owned solely by non-residents

• Registering entities owned by another business (such as a corporation or partnership)

Understanding the BN and Program Accounts

A Business Number is the CRA’s unique nine-digit identifier for your enterprise. Each program account adds letters denoting its purpose:

As the CRA embraces digital transformation, businesses can look forward to a more efficient, secure, and less haunting registration process- no tricks, just streamlined service.

Source: Canada Revenue Agency

Conviction in the Shadows - Cathie Wood on Risk, Innovation, and the Future of Markets

As volatility creeps through global markets, Cathie Wood stands resolute. In My First Million (Ep. 760), host Shaan Puri uncovers the mindset behind the ARK Invest founder’s boldest plays—and why she believes innovation, not fear, defines the next market cycle.

From McDonald’s to Market Maverick

Wood’s journey from a fast-food counter to managing billions underscores her belief that true conviction demands discomfort. Her strategy centers on exponential change rather than short-term noise.

ARK’s Core Focus

Wood’s team targets transformative technologies driving long-term growth.

Even amid criticism, Wood views volatility as validation. “Markets often misread innovation until it rewrites the rules,” she says.

Source: My First Million – Episode 760

A Window of Opportunity: Interest Rate Cuts and Major Incentives Reshape Ontario’s Housing Market

This season brings more than falling leaves for Ontario’s housing market. The Bank of Canada has announced a reduction in the prime interest rate from 4.70% to 4.45%, a move that could mean substantial savings for homebuyers and homeowners alike.

Lower Rates, Greater Possibility

The 25-basis-point decrease will ease borrowing costs and open new doors for many Canadians. This change translates to:

• Lower monthly mortgage payments

• Improved affordability for first-time buyers

• More flexibility for refinancing

In an environment long shaped by high borrowing costs, this development provides a welcome opportunity to take action.

Ontario’s New Homebuyer Advantage

Adding to the optimism, Ontario has introduced a groundbreaking incentive for first-time buyers purchasing newly built homes valued up to $1 million. Buyers can now save the provincial portion of the HST, worth 8%, resulting in potential savings of up to $80,000.

A Moment to Move Forward

With borrowing costs falling and government incentives rising, first-time buyers have a unique opportunity to turn homeownership aspirations into reality. For many, the path to their first set of keys just became brighter.

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The Cost of Automation: CRA Under Fire After $4.99 Million Erroneous Refund

A series of leaked internal files has placed the Canada Revenue Agency (CRA) under intense scrutiny. According to documents obtained by CBC’s The Fifth Estate and Radio-Canada, the agency mistakenly issued a $4.99 million refund to a Quebec-based company, Distribution Carflex Inc., in 2023. The payment, processed automatically without human oversight, has reignited debate over the risks embedded in government automation systems.

An Expensive Oversight

The refund passed through the CRA’s systems unchallenged because it fell just short of the $5 million threshold that would have triggered a manual review. The agency later determined that the supposed capital gain underpinning the claim had never been paid. Alarm bells first rang not within the CRA, but at TD Bank, where the funds were deposited.

Systemic Weakness and Oversight Concerns

Insiders describe a pattern of automated refunds processed without adequate verification, allowing suspicious claims to go unnoticed. “There should be eyes on these transactions, but there aren’t,” one source said.

Experts from McGill University agree that simple human oversight could have prevented the error. “If a person had looked at the file, they would have noticed immediately,” noted Raphaël Clément, tax lawyer and researcher.

With the Federal Court now involved, calls are growing for an independent audit of the CRA’s fraud controls. As one insider warned, “The agency cannot police itself.”

Source: CBC News

Clearing the Fog: The Truth Behind Canada’s Capital Gains Tax Changes

In our latest TikTok video, “The Real Capital Gains Tax in Canada (Explained),” we broke down one of the most misunderstood changes in personal finance. As headlines swirl with claims that “Canada now taxes 66% of your gains,” it’s time to separate fact from fiction.

@taxmechanic

People keep saying Canada taxes 66% of your capital gains — but that’s not how it works. Here’s the real math behind the Canadian capital ... See more

What’s Actually Changing

The government isn’t taking 66% of your profits. Instead, it’s increasing the inclusion rate—the share of your capital gain that counts as taxable income.

So while a greater portion of high earners’ gains will be taxable from January 1, 2026, the actual effective tax rate remains around 20–27%, depending on income and province.