Welcome to the Spring 2025 Edition of the TAAG Quarterly.
Two issues dominate the current economic and political landscape: The Trump Tariffs and Uncertainty.
In this edition, we will explore some basic information about tariffs. TAAG COO, Bill Ayyad, will give a more personal view about the impact of tariffs on Canadians and some individual strategies for combatting them.
Niyilola Awoniyi, CPA, of TAAG’s Accounting and Tax division, gives some insights into the person behind the Fractional Chief Financial Officer function and how small businesses can use this cost-saving service.
Finally, Dave MacMeekin, QAFP, of TAAG’s Family Office, will weigh in with some practical ideas on managing your wealth during a highly uncertain period. One of these uncertainties is what will happen to capital gains taxes with a new government in power.
In the last TAAG Quarterly, we asked your views on the HST/GST “tax holiday” that the federal government established between December 14, 2024, and February 15, 2025.
About 50% of respondents felt that it was not a good idea: that it was hastily planned and poorly thought out; created additional work and expenses for businesses; and increased the growing public debt.
On the other hand, 35% of respondents felt it was a good idea: lowering certain costs to consumers; increasing demand over the year-end holiday season; giving a boost to some hard-hit businesses, like restaurants; and reducing Canada’s inflation rate, at least temporarily.
Please enjoy the Spring 2025 Edition of the TAAG Quarterly. For feedback or additional information, contact us at reception@taag.ca.
Ian Sadinsky
Editor, TAAG Quarterly
Tariff Wars: A Race to the Bottom
The tariff war initiated by U.S. President Donald Trump has already had a dramatic effect on both the Canadian and American economies. For Canadians, tariffs affect everything from the price of food to the cost of a home, to overwhelming expenses for travel in the U.S.
For Canadian businesses, supply chains may be disrupted, and consumer demand will decline as prices rise to take account of the tariffs. Businesses will have to reorganize their production operations, leading inevitably to layoffs, and, in worst case scenarios, business closures or bankruptcies. Tariffs affect interest rates, foreign exchange rates, stock prices, and bond valuations.
Tariffs are essentially a tax on products coming into a country. Sometimes there is a mistaken impression that the tariff (or tax) is paid by the seller (exporter). In fact, the tariff is paid by the consumer (importer). Tariff levies go into a government’s general revenues. But it is its own citizens who are paying this additional charge, therefore reducing demand in the importing country with all the related impacts.
Governments may use some or all of these tariff revenues to assist industries and workers most affected with special programs. We have already seen some of these programs in Canada.
Tariffs can be used selectively by governments to protect certain local industries or fledgling industries, like electric vehicles, allowing them time to become competitive with foreign suppliers. But used aggressively as President Trump did in 2018 and again in 2025, tariffs will cause heavy resistance from other countries. We have already witnessed the outpouring of national pride by Canadians in the face of these tariffs. (Elsewhere in this edition of the TAAG Quarterly, TAAG COO, Bill Ayyad, expresses his personal thoughts on how Canadians can be proactive in countering the effects of the tariffs).
Already we have seen a number of postponements and concessions as U.S. governors and business representatives lobby their President. Consumers and producers are being heavily affected on both sides of the border. As previous trade wars have shown, there are no winners in a race to the bottom.
For Canada, there are two important policy initiatives which can limit the impact:
Canadians and Americans have benefitted greatly from almost four decades of free trade. Hopefully a fair, amicable and lasting solution can be found quickly.
Ian Sadinsky
Editor, TAAG Quarterly
The U.S. Tariffs – A Personal Reflection
Having immediate and extended family and countless number of friends all over the U.S., I have always loved America and travelled to almost every part of it. Heck, I have two American-made vehicles plus a Harley sitting in my garage. My love for America, my American family and friends will always be there!
Sadly, on February 1st, with the stroke of a thick Sharpie/crayon, President Donald Trump built a wall between American and Canadian families, friends, partners and allies. And he used a baseless, fake excuse to do it while violating decades-old trade agreements. I whole heartedly agree with the measured and effective response by the Canadian government, supported by leaders of all political stripes and welcomed by all Canadians. But this is not enough; all Canadians must step up and unite by taking immediate and relatively painless measures such as:
Bill Ayyad
Chief Operating Officer, TAAG
The Making of a Fractional Chief Financial Officer
As a Fractional Chief Financial Officer for small businesses, I take great pride in helping businesses thrive and scale through informed decision-making. By providing meaningful financial insights, we empower owner-managers to make strategic decisions that drive growth and profitability, and at much less cost than having the function in-house.
My accounting journey began over a decade ago in the financial sector after earning my undergraduate degree in Accounting and Finance. I later transitioned to private corporations, where I managed accounts receivable, accounts payable, and full-cycle accounting. Additionally, I gained valuable experience in the tax department of a government agency responsible for tax administration and collection. To support my professional growth, I obtained certifications from CPA Ontario and ACCA. These diverse experiences have given me a well-rounded accounting foundation, essential for excelling as a Fractional CFO.
A key factor in my success is putting myself in the shoes of the business owner-manager. I ask myself, “What level of service would I expect if this were my own business?” This mindset drives my approach to delivering quality service.
Over the past few years with TAAG’s Accounting division, I’ve helped clients increase profitability by 35% through strategic financial management. I have also streamlined financial reporting processes by implementing best practices in bookkeeping and accounting. As a result, owner-managers now have clearer financial insights, empowering them to develop and execute effective growth strategies.
For more information on our Fractional CFO service, contact reception@taag.
Niyilola Awoniyi, CPA, CGA, FCCA
Senior Associate, Accounting and Tax, TAAG | LBA LLP
Tried and True Strategies in Trying Times
Creating a well-diversified portfolio is a pivotal task in investing. It is essential to check your asset allocation from time to time since rebalancing is a critical step that helps optimize your portfolio’s performance. Typically, an annual rebalancing will suffice. However, a more frequent assessment may be prudent at times of increased volatility, such as we are facing today!
Two factors loom large in these trying times: “Trump 2.0” and the deferred changes to Canada’s capital gains tax regime. For investors who want to position their portfolios for the economic and geopolitical maelstrom being unleashed by Trump’s policy changes, there are a few ways to insulate their portfolios: increase diversification, mitigate geopolitical risk, and manage volatility.
With respect to the changes to the capital gains tax that have been deferred until January 2026, there are two possible outcomes, neither of which should be dismissed. A new government could reverse course in response to public pressure; or it might ultimately enact the legislation under the guise of “tax fairness” thus helping to fund growing deficits. Should you be realizing capital gains this year? Consult our financial advisors at familyoffice@taag.ca to review your asset mix and make sure your portfolio is ready for what lies ahead.
Dave MacMeekin, QAFP
Financial Planner, TAAG Family Office
2024 Personal Tax Filing Deadline: April 30, 2025
For most Canadians, the personal income tax filing deadline is April 30, 2025. If you are self-employed, the filing deadline extends to June 16, 2025, but any balances owing must still be paid by April 30, 2025.
In order to allow adequate time to prepare your tax return, it is important that we have your tax return information sent to us as soon as possible. You can find the Tax Package on our website along with What’s New for the 2024 Tax-Filing Season.
