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A year into Russia’s invasion of Ukraine, has Canada done enough to help? – Global News

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At Kozak Ukrainian Eatery in New Westminster, B.C., a jar sits next to the till, displaying a Ukrainian flag. A few loose coins sit inside.

Behind the counter, as the smell of fresh-baked pastries and simmering borscht wafts from the kitchen, Yana Naida doesn’t ask for a donation or acknowledge the jar. She smiles, thanks customers for their purchase, and continues on with her work.

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The 19-year-old university student fled the Ukrainian town of Ternopil, outside of Lviv, three months after Russia launched its invasion on Feb. 24, 2022. She came to Canada because she not only knows English — it’s her major — but also because she knows the money she makes at Kozak will go a long way back home.

“For two dollars you can pay for a soldier’s supper,” she told Global News in an interview.

“I’m just a lot more useful here.”

Naida says she’s noticed a drop in donations for Ukraine, both in that jar by the register and in her other efforts to fundraise for Ukrainian-based charities over recent months. But she doesn’t doubt that Canadians, and the West overall, still supports her country.

“People can only give so much, especially after they gave so much at the start,” she said. “But people will ask about it at the store, when they hear my accent, and I know they still care.”

‘Canadians are where they need to be’

A year into the war — and with no end in sight — Canada and its Western allies are underscoring the need to keep helping Ukraine defend itself against Russia, despite the mounting economic cost.

Ipsos polling from January suggests people around the world remain supportive, although some signs of fatigue are showing. About two-thirds of those surveyed across 28 countries, including Canada, said they still follow news on the invasion closely, support taking in Ukrainian refugees and agree doing nothing in Ukraine will encourage Russia to invade elsewhere.

The support for refugees, however, has dipped seven points since March and April 2022, while the belief Russia will be encouraged if Ukraine is ignored is down five points.

But the poll also suggests Canadians are more willing to support Ukraine than most other countries surveyed. Canada was one of only three countries where a majority did not say their government can no longer afford to financially support Ukraine “given the current economic crisis” back home.

Those sentiments appear to be growing in countries like France, Germany, Poland, and Japan, according to the poll.


Ukrainian President Volodymyr Zelenskyy receives a standing ovation as he appears via videoconference to make an address to Parliament, in the House of Commons on Parliament Hill in Ottawa, on Tuesday, March 15, 2022. THE CANADIAN PRESS/Justin Tang.


THE CANADIAN PRESS/Justin Tang

Canadians surveyed were also more supportive of economic sanctions against Russia, despite the impact on gas and food prices, and even deploying NATO forces to nations surrounding Ukraine.

The steadfast support is also noticeable in the halls of Parliament. Unlike in the United States, where a sizeable group of Republicans are openly questioning sending more aid to Ukraine, politicians of all parties in Canada have largely remained supportive.

“Canadians are where they need to be on supporting Ukraine … which undergirds the political support,” said Orest Zakydalsky, a senior policy adviser for the Ukrainian Canadian Congress (UCC).

Over the past year, the UCC, which represents the largest Ukrainian diaspora outside of Russia — nearly 1.4 million Canadians identify as Ukrainian — has lobbied the Canadian government to do all it can to help the war effort. That has included military, financial and humanitarian support as well as fast-tracking the entry of Ukrainians fleeing the war to seek temporary residency in Canada.


Ukrainian nationals fleeing the ongoing war in Ukraine arrive at Trudeau Airport in Montreal, Sunday, May 29, 2022. THE CANADIAN PRESS/Graham Hughes.


THE CANADIAN PRESS/Graham Hughes

To date, Canada has provided over $5 billion to Ukraine, including more than $1 billion in military equipment and support.

The federal government has also paid nearly $290 million in direct financial assistance to Ukrainians arriving in Canada, and established a $500-million Ukrainian Sovereignty Bond to allow Canadians to essentially invest in Ukraine’s survival.

“In terms of economic support, in some ways, Canada has been a leader,” Zakydalsky said.

But he adds Canada still needs to do more, including further economic sanctions on Russia and the figures who support the war and peddle disinformation.

He also wants a firm commitment from the government to extend the Canada-Ukraine Authorization for Emergency Travel (CUAET) program, which fast-tracks the entry process for Ukrainians and their families fleeing the war for Canada, beyond the current March 31 deadline.

“It’s creating some concern both in our community and amongst Ukrainians in Europe and Ukraine that the program may end,” he said.


Click to play video: 'Deputy PM Freeland greets 1st flight of Ukrainian refugees in Winnipeg'

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Deputy PM Freeland greets 1st flight of Ukrainian refugees in Winnipeg


Since January 2022, 167,585 Ukrainians have arrived in Canada, including CUAET applicants and returning Canadian permanent residents. Over half a million applications through the CUAET program have been approved.

Immigration, Refugees and Citizenship Canada said in a statement to Global News it continues to “closely monitor the ongoing needs of Ukrainians,” but would not say if the CUAET program will be extended. The agency added some of the approved applicants who have not arrived in Canada have chosen to stay closer to home instead.

“We’re working very hard … at making sure people have some normalcy in their life,” Zakydalsky said, pointing to local efforts to help newly-arrived Ukrainians navigate filing their taxes, learning English and getting driver’s licenses. “This (uncertainty over CUAET) makes that work difficult.”

What happens to military support?

Zakydalsky is also pushing Ottawa to follow with the rest of NATO and continue to increase its military aid to Ukraine, including more advanced weapons and equipment.

But experts say that may prove to be difficult in the war’s second year.

“I think what this war has exposed is the limits of Canada’s military and Canada’s overall power,” said Andrew Rasiulis, a fellow at the Canadian Global Affairs Institute and a former official in the Department of National Defence.

After weeks of requests by Ukrainian President Volodymyr Zelenskyy for the West to send Leopard 2 battle tanks, Canada last month donated four out of the 112 currently owned by the Canadian Armed Forces, which includes 82 designed for combat.

Defence Minister Anita Anand left the door open to sending even more tanks in the future, though she also emphasized the need to ensure the Canadian Army has enough of the heavy weapons to train and defend the country and its NATO allies.

Rasiulis suspects that means Canada still needs to hold onto its remaining tanks to meet its commitment to upgrade the 2,000-soldier battlegroup it leads in Latvia to a brigade, which will mean boosting troops and equipment.

Canada’s military, along with other Western nations, is also facing a recruitment crisis that Chief of the Defence Staff Gen. Wayne Eyre has told Global News makes him worried about the “collective ability to defend democracy at large.”

“I am concerned, but I’m concerned for the wider West as well,” he said last month in an interview with The West Block.

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While it is supposed to be adding about 5,000 troops to regular and reserve forces to meet a growing list of demands, the military is instead short more than 10,000 trained members — meaning about one in 10 positions are currently vacant.

In addition to a lack of recruits, the Canadian military continues to face longstanding challenges in procuring new equipment, maintaining aging gear, and tracking down replacement parts.

One area where the military does not appear to be having recruitment issues is in its cybersecurity force, which has been tasked with combating Russian cyberattacks and other forms of online warfare since before the invasion began.

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The head of that cyber force, Rear Adm. Lou Carosielli, told a parliamentary committee this month that his team has met recruitment targets over the past three years. That has allowed the Canadian Armed Forces to establish a cyber task force to help Ukraine defend itself from Russian hackers, and another as a permanent part of the Latvia brigade.

“The threat is not limited to Ukraine alone,” Carosielli said, noting the Latvia cyber force helps that country and other European allies in the cybersecurity sphere.

More recently, Canada’s military contributions to Ukraine have been largely focused on contracting and purchasing equipment from elsewhere rather than donating from its own stocks. This has included the procurement of over 200 armoured vehicles from Mississauga-based Roshel and the purchase of an American-made air defence system at a cost of $406 million.


Click to play video: 'Russian state TV spins Global News exclusive into propaganda targeting Canada'

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Russian state TV spins Global News exclusive into propaganda targeting Canada


Rasiulis says that will likely be the strategy going forward, while putting more weight behind further financial and humanitarian aid and bolstering Western support for other initiatives like prosecuting Russian war crimes.

“That’s where Canada, politically-speaking, would be best placed and I think is where they are now moving,” he said.

“Canada is still a peacetime economy. And that means … money is always a limitation. But maintaining that moral high ground is important and also cost-effective.”

Back in New Westminster, Naida says she will continue to send a sizeable portion of her wages to a few select charities in Ukraine focused on military aid, and others that provide direct assistance like meals, clothing and essential items to refugees who fled the war-torn east.

Any additional help she receives from Canadians — whether it be the government or the next customer who walks into Kozak — will be welcome, she adds.

“People need to live their own lives. I get it. I cannot ask for more,” she said. “We are doing everything we can.”

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Canada Child Benefit payment on Friday | CTV News – CTV News Toronto

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More money will land in the pockets of Canadian families on Friday for the latest Canada Child Benefit (CCB) installment.

The federal government program helps low and middle-income families struggling with the soaring cost of raising a child.

Canadian citizens, permanent residents, or refugees who are the primary caregivers for children under 18 years old are eligible for the program, introduced in 2016.

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The non-taxable monthly payments are based on a family’s net income and how many children they have. Families that have an adjusted net income under $34,863 will receive the maximum amount per child.

For a child under six years old, an applicant can annually receive up to $7,437 per child, and up to $6,275 per child for kids between the ages of six through 17.

That translates to up to $619.75 per month for the younger cohort and $522.91 per month for the older group.

The benefit is recalculated every July and most recently increased 6.3 per cent in order to adjust to the rate of inflation, and cost of living.

To apply, an applicant can submit through a child’s birth registration, complete an online form or mail in an application to a tax centre.

The next payment date will take place on May 17. 

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Capital gains tax change draws ire from some Canadian entrepreneurs worried it will worsen brain drain – CBC.ca

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A chorus of Canadian entrepreneurs and investors is blasting the federal government’s budget for expanding a tax on the rich. They say it will lead to brain drain and further degrade Canada’s already poor productivity.

In the 2024 budget unveiled Tuesday, Finance Minister Chrystia Freeland said the government would increase the inclusion rate of the capital gains tax from 50 per cent to 67 per cent for businesses and trusts, generating an estimated $19 billion in new revenue.

Capital gains are the profits that individuals or businesses make from selling an asset — like a stock or a second home. Individuals are subject to the new changes on any profits over $250,000.

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The government estimates that the changes would impact 40,000 individuals (or 0.13 per cent of Canadians in any given year) and 307,000 companies in Canada.

However, some members of the business community say that expanding the taxable amount will devastate productivity, investment and entrepreneurship in Canada, and might even compel some of the country’s talent and startups to take their business elsewhere.

WATCH | The federal budget hikes capital gains inclusion rate: 

Federal budget adds billions in spending, hikes capital gains tax

3 days ago

Duration 6:14

Finance Minister Chrystia Freeland unveiled the government’s 2024 federal budget, with spending targeted at young voters and a plan to raise capital gains taxes for some of the wealthiest Canadians.

Benjamin Bergen, president of the Council of Canadian Innovators (CCI), said the capital gains tax has overshadowed parts of the federal budget that the business community would otherwise be excited about.

“There were definitely some other stars in the budget that were interesting,” he said. “However, the … capital gains piece really is the sun, and it’s daylight. So this is really the only thing that innovators can see.”

The CCI has written and is circulating an open letter signed by more than 1,000 people in the Canadian business community to Trudeau’s government asking it to scrap the tax change.

Shopify CEO Tobi Lütke and president Harley Finkelstein also weighed in on the proposed hike on X, formerly known as Twitter.

Former finance minister Bill Morneau said his successor’s budget disincentivizes businesses from investing in the country’s innovation sector: “It’s probably very troubling for many investors.”

Canada’s productivity — a measure that compares economic output to hours worked — has been relatively poor for decades. It underperforms against the OECD average and against several other G7 countries, including the U.S., Germany, U.K. and Japan, on the measure. 

Bank of Canada senior deputy governor Carolyn Rogers sounded the alarm on Canada’s lagging productivity in a speech last month, saying the country’s need to increase the rate had reached emergency levels, following one of the weakest years for the economy in recent memory.

The government said it was proposing the tax change to make life more affordable for younger generations and fund efforts to boost housing supply — and that it would support productivity growth.

A challenge for investors, founders and workers

The change could have a chilling effect for several reasons, with companies already struggling to access funding in a high interest rate environment, said Bergen.

He questioned whether investors will want to fund Canadian companies if the government’s taxation policies make it difficult for those firms to grow — and whether founders might just pack up.

The expanded inclusion rate “is just one of the other potential concerns that firms are going to have as they’re looking to grow their companies.”

A man with short brown hair wearing a light blue suit jacket looks directly at the camera, with a white background behind him.
Benjamin Bergen, president of the Council of Canadian Innovators, said the proposed change could have a chilling effect for several reasons, with companies already struggling to access and raise financing in a high interest rate environment. (Submitted by Benjamin Bergen)

He said the rejigged tax is also an affront to high-skilled workers from low-innovation sectors who might have taken the risk of joining a startup for the opportunity, even taking a lower wage on the chance that a firm’s stock options grow in value.

But Lindsay Tedds, an associate economics professor at the University of Calgary, said the tax change is one of the most misunderstood parts of the federal budget — and that its impact on the country’s talent has been overstated.

“This is not a major innovation-biting tax change treatment,” Tedds said. “In fact, when you talk to real grassroots entrepreneurs that are setting up businesses, tax rates do not come into their decision.”

As for productivity, Tedds said Canadians might see improvements in the long run “to the degree that some of our productivity problems are driven by stresses like housing affordability, access to child care, things like that.”

‘One foot on the gas, one foot on the brake’

Some say the government is sending mixed messages to entrepreneurs by touting tailored tax breaks — like the Canada Entrepreneurs’ Incentive, which reduces the capital gains inclusion rate to 33 per cent on a lifetime maximum of $2 million — while introducing measures they say would dampen investment and innovation.

“They seem to have one foot on the gas, one foot on the brake on the very same file,” said Dan Kelly, president of the Canadian Federation of Independent Business.

WATCH | Could the capital gains tax changes impact small businesses?: 

How could capital gains tax increases impact Canadian small businesses? | Power & Politics

2 days ago

Duration 12:18

Some business groups are worried that new capital gains tax changes could hurt economic growth. But according to Small Business Minister Rechie Valdez, most Canadians won’t be impacted by that change — and it’s a move to create fairness.

A founder may be able to sell their successful company with a lower capital gains treatment than otherwise possible, he said.

“At the same time, though, big chunks of it may be subject to a higher rate of capital gains inclusion.”

Selling a company can fund an individual’s retirement, he said, which is why it’s one of the first things founders consider when they think about capital gains.

LISTEN | What does a hike on the capital gains tax mean?: 

Mainstreet NS7:03Ottawa is proposing a hike to capital gains tax. What does that mean?

Tuesday’s federal budget includes nearly $53 billion in new spending over the next five years with a clear focus on affordability and housing. To help pay for some of that new spending, Ottawa is proposing a hike to the capital gains tax. Moshe Lander, an economics lecturer at Concordia University, joins host Jeff Douglas to explain.

Dennis Darby, president and CEO of Canadian Manufacturers & Exporters, says he was disappointed by the change — and that it sends the wrong message to Canadian industries like his own.

He wants to see the government commit to more tax credit proposals like the Canada Carbon Rebate for Small Businesses, which he said would incentivize business owners to stay and help make Canada competitive with the U.S.

“We’ve had a lot of difficulties attracting investment over the years. I don’t think this will make it any better.”

Tech titan says change will only impact richest of the rich

A man sits on an orange couch in an office.
Ali Asaria, the CEO of Transformation Lab and former CEO of Tulip Retail, told CBC News that the proposed change to the capital gains tax is ‘going to really affect the richest of the rich people.’ (Tulip Retail)

Toronto tech entrepreneur Ali Asaria will be one of those subject to the expanded capital gains inclusion rate — but he says it’s only fair.

“It’s going to really affect the richest of the rich people,” Asaria, CEO of open source platform Transformer Lab and founder of well.ca, told CBC News.

“The capital gains exemption is probably the largest tax break that I’ve ever received in my life,” he said. “So I know a lot about what that benefit can look like, but I’ve also always felt like it was probably one of the most unfair parts of the tax code today.”

While Asaria said Canada needs to continue encouraging talent to take risks and build companies in the country, taxation policies aren’t the most major problem.

“I think that the biggest central issue to the reason why people will leave Canada is bigger issues, like housing,” he said.

“How do we make it easier to live in Canada so that we can all invest in ourselves and invest in our companies? That’s a more important question than, ‘How do we help the top 0.13 per cent of Canadians make more money?'”

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Canada Child Benefit payment on Friday | CTV News – CTV News Toronto

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More money will land in the pockets of Canadian families on Friday for the latest Canada Child Benefit (CCB) installment.

The federal government program helps low and middle-income families struggling with the soaring cost of raising a child.

Canadian citizens, permanent residents, or refugees who are the primary caregivers for children under 18 years old are eligible for the program, introduced in 2016.

300x250x1

The non-taxable monthly payments are based on a family’s net income and how many children they have. Families that have an adjusted net income under $34,863 will receive the maximum amount per child.

For a child under six years old, an applicant can annually receive up to $7,437 per child, and up to $6,275 per child for kids between the ages of six through 17.

That translates to up to $619.75 per month for the younger cohort and $522.91 per month for the older group.

The benefit is recalculated every July and most recently increased 6.3 per cent in order to adjust to the rate of inflation, and cost of living.

To apply, an applicant can submit through a child’s birth registration, complete an online form or mail in an application to a tax centre.

The next payment date will take place on May 17. 

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