August 2025

E-Commerce in the Economy: Growth, Opportunity & What’s Next

E-commerce has become a key pillar of the modern economy, with no signs of slowing down. In Canada, online retail sales continue to climb steadily, with projections surpassing $100 billion annually by 2026, and globally, e-commerce now accounts for over 20% of all retail sales. Thanks to platforms like Shopify, Amazon, and TikTok Shop, it’s never been easier to launch a digital storefront and reach customers worldwide. But with that accessibility comes increased competition and rising consumer expectations — fast shipping, seamless checkouts, and strong branding are no longer optional. The good news? There's still massive growth potential, especially for niche brands and those that focus on customer experience. Whether you’re scaling up or just starting out, e-commerce remains one of the most accessible and high-potential spaces for entrepreneurs — but long-term success requires solid financials, good systems, and the ability to adapt. That’s where we can help.

CRA Update: Canada Carbon Rebate Is Now Tax-Free for Businesses

The federal government has officially confirmed that the Canada Carbon Rebate for Small Businesses is non-taxable — meaning eligible businesses will not need to report the rebate as income on their T2 corporate tax returns for any fuel charge years from 2019‑2020 through 2024‑2025. As draft legislation undergoes parliamentary approval (expected this fall), businesses that haven’t yet filed can choose to exclude the rebate from taxable income immediately. Caveat: If you omit the rebate from your return before the legislation becomes law, and it doesn’t pass, your business could be subject to interest and penalties for underreporting income.

If your business has already assumed the rebate was taxable and paid tax on it, CRA is preparing to issue amended assessments and refunds, once the legislation is enacted. The CRA may contact taxpayers to confirm reassessment details. They will provide further guidance on it at that time.

CRA Wants You Online — Including Your Mail

The CRA is going digital — and they want both businesses and individuals to manage everything online, including receiving official mail.

For businesses, this means using My Business Account, a secure online portal where you can view and manage:

• GST/HST filings and balances

• Payroll remittances and source deductions

• Corporate tax returns (T2) and notices of assessment

• Correspondence related to audits, reviews, or account changes

Unless you opt out, the CRA now sends most business correspondence — including audit letters, filing reminders, and notices of assessment — online only. You won’t get paper mail unless specifically requested. To avoid missing deadlines or compliance issues, it’s essential to:

• Register for CRA My Business Account

• Enable email notifications to receive alerts when new mail arrives

• Ensure your accountant or bookkeeper has authorized access to view and respond on your behalf

For individuals, the shift is similar. The CRA My Account portal gives you access to your personal tax return information, benefit notices, RRSP and TFSA limits, and more. Like with business accounts, the CRA is defaulting to digital mail delivery, so notices of assessment, review requests, and benefit updates are sent to your online mailbox — not your physical one.

If you don’t have a CRA My Account or haven’t enabled notifications, you could miss important messages. We recommend logging in periodically or setting up email alerts to stay informed. And if you’re not sure where to start, we can help get you set up and connected — because staying up to date with the CRA shouldn’t be a guessing game.

RESP Strategy: Free Money, Tax Deferral & Smart Withdrawals

If you're saving for a child’s post-secondary education, Registered Education Savings Plans (RESPs) are one of the best financial tools available in Canada — yet many families aren't using them to their full potential. Here's what you need to know:

You can contribute up to $50,000 per child over the life of the RESP, and the government adds a 20% match (Canada Education Savings Grant, or CESG) on the first $2,500 contributed per year — that’s $500/year in free money, up to a lifetime max of $7,200 per child.

RESP investments grow tax-deferred, meaning you don’t pay tax on interest, dividends, or capital gains while they’re inside the plan. When it’s time to withdraw, your original contributions come out tax-free, and the grants and earnings are taxed in the hands of the student — who typically has low or no income, and can apply tuition credits, making RESP withdrawals extremely tax-efficient. But timing matters: if you take out too much too soon, or not enough in the right years, you could trigger unnecessary tax.

Good to know: RESPs aren’t just for parents! Aunts, uncles, grandparents, and even family friends can open or contribute to an RESP — as long as the child has a Social Insurance Number. You don’t need to be a legal guardian to help fund a child’s future.

Heading into fall, now’s a good time to plan for upcoming school expenses or start a new RESP for a child or grandchild. Have questions about setting one up or managing withdrawals? We’re happy to walk you through it.

The preceding information is for educational purposes only. As it is impossible to include all situations, circumstances and exceptions in a newsletter such as this, a further review should be done by a qualified professional.

No individual or organization involved in either the preparation or distribution of this letter accepts any contractual, tortious, or any other form of liability for its contents.

For any questions, please contact us.

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