Canada has new laws and measures taking effect in May
A couple of new laws are rolling out across Canada, introducing changes that people should be aware of in the coming weeks.
Some of the new laws that will be implemented across Canada this May will affect your taxes, as well as banking services. As tax season ends on April 30, Canadians should be aware of any money they owe the Canada Revenue Agency (CRA) to avoid having to pay daily compound interest.
Speaking of money, a new law will affect banks’ liquidity to ensure financial institutions are better prepared for uncertainty. When it comes to immigration, the Immigration, Refugees and Citizenship Canada (IRCC) is asking Canadians for their opinions as it looks to review its Express Entry program.
Here are the laws and rules that will go into effect in Canada in May.
CRA to charge daily interest
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Canadians who owe money to the CRA will have to pay their remaining balance no later than April 30. If the amount you owe is $2 or less, don’t worry, no payment is required as the agency doesn’t collect balances under that threshold.
However, if the amount you owe is significantly higher than that, make sure to pay before the deadline. That’s because starting on May 1, the CRA will start charging a daily compound interest on any outstanding balance from the due date until you pay your balance in full.
You can make a payment electronically, by cheque or debit, using a remittance voucher, or by cash at a Canada Post outlet (for a fee) if you have a remittance voucher with a QR code or a self-generated QR code.
If you can’t pay your balance by April 30, visit the CRA debt collection site to manage your payments or visit the tax collection policies site for more information.
Changes to banking rules
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Canada’s banking rules are getting an update. Guidelines for the Liquidity Adequacy Requirements set out by the Office of the Superintendent of Financial Institutions take effect on May 1.
The new rule applies to federally regulated banks, bank holding companies, and trust and loan companies to make sure these institutions always have enough cash to handle withdrawals and meet payment and settlement obligations, even during periods of stress.
The guidelines ensure financial institutions avoid liquidity problems that could result in bigger issues.
Review of Canada’s Express Entry
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Although this isn’t a new law that’s going into effect, it is a chance to participate in possible reforms.
IRCC is asking Canadians for their input as it looks to update the Express Entry program and its scoring system, the Comprehensive Ranking System (CRS). Anyone can share their thoughts through a survey, even if you’ve never used the system before.
Express Entry is the online system that the IRCC uses to manage permanent residence applications from skilled workers. The CRS is the system that ranks candidates, scoring them based on age, education, language skills, work experience, and other factors.
Proposed changes include simplifying the program requirements, updating the CRS based on the latest data, and introducing new points for candidates with Canadian work experience or a job offer in a high-wage occupation.
You can take part by participating in the survey, and you don’t need prior experience or knowledge of Express Entry. The deadline to submit your response is May 24.