Business tax

Business tax

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Taxable preferred shares

Budget 2026 proposed increasing exclusions from the Part VI.1 tax regime.

Part VI.1 of the Income Tax Act applies a special tax on dividends paid on taxable preferred shares, which are shares with debt-like characteristics. The tax is applicable to dividends paid in excess of a dividend allowance threshold that is reduced to the extent that dividends paid in the prior calendar year exceed a set amount.

The budget’s changes would exclude dividends paid by Canadian-controlled private corporations from Part VI.1 tax. It would also increase the dividend allowance threshold to $1.5 million and the set amount at which the threshold is reduced to $3 million.

This measure would apply to taxation years that end after 2026.

Corporate tax elections

Budget 2026 proposed removing the requirement for corporations making certain elections to provide a certified copy of a resolution of their directors or person entitled to administer the affairs authorizing the election or agreement.

This requirement applies to, among other things, capital dividend and certain SR&ED elections—and the change is intended to simplify the election process.

This measure would apply to elections made on or after the date the budget receives royal assent.

Corporate loss transfers within wholly owned groups

Budget 2026 launched a consultation on a proposed regime that would allow eligible corporations within a wholly owned corporate group to transfer current-year non-capital losses.

The proposed rules would generally be limited to taxable Canadian-resident corporations with permanent establishments in the same province or territory and would require a joint election.

The consultation seeks input on tax-integrity safeguards and the potential expansion of the regime, with submissions due Jan. 8, 2027.

Excess corporate holdings regime for private foundations

Budget 2026 proposed simplifying the rules for registered charities by eliminating the excess corporate holdings regime for private foundations.

The Income Tax Act currently contains rules designed to limit the risk of self-dealing associated with private foundations registered as charities by placing limits on their shareholdings.

Under the current regime, private foundations are prevented from acquiring more than 20 per cent of a class of shares of any corporation in combination with all relevant persons—often non-arm's length individuals.

Private foundations must track their shareholdings and those of any relevant persons; they must also report these holdings, and any material transaction involving these holdings within the year, to the Canada Revenue Agency (CRA).

If total holdings exceed 20 per cent and the private foundation itself holds more than 2 per cent of the class of shares, it is obligated to divest its excess shareholdings within a particular timeframe.

In place of the regime, the federal government would extend the rules that currently prohibit public foundations from acquiring control of a corporation to private foundations. The measure would apply to taxation years that begin on or after Jan. 1, 2027.

Personal tax

Personal tax

How RSM Canada can help you

New Canada Growth Incentive capital gains exemption

Budget 2026 proposed a new capital gains exemption.

This measure, which the government refers to as the Canada Growth Incentive, would allow a Canadian individual to claim a capital gains exemption on the disposition of up to $15 million of qualifying shares of a qualifying corporation.

A qualifying individual would be a Canadian resident over the age of 18 at the time they acquired a qualifying share. A qualifying share would have to be issued by a qualifying corporation to the individual—or to a partnership of which the individual is a member—and owned directly by the individual or partnership.

There are several criteria that would need to be met for the shares to be considered qualifying shares.

At the time of share issuance, the corporation must be a Canadian-controlled private corporation and all or substantially all of the fair market value of the corporation’s assets must be attributable to assets used—or reasonably intended to be used within 36 months—principally in a qualifying business carried on primarily in Canada.

Immediately before and after the share issuance, the combined carrying value of the assets of the corporation and all corporations related to it must not exceed $100 million. The qualifying share must also have been held by the qualifying individual or partnership for a minimum period of 36 consecutive months immediately before the disposition.

Throughout the period in which a qualifying share is owned by a qualifying taxpayer, at least 50 per cent of the fair market value of the corporation’s assets must be intended for use in a qualifying business. The qualifying business must be carried on primarily in Canada for a minimum of 24 consecutive months immediately following the share issuance.

When the qualifying taxpayer is ready to dispose of the qualifying shares, the corporation must be a Canadian private corporation or a publicly listed corporation on a Canadian designated stock exchange. Additionally, all or substantially all of the FMV of the corporation’s assets must be attributable to assets used principally in a qualifying business.

When examining the qualifying business criteria, there appears to be a very narrow scope in qualifying industries. Businesses that are notably excluded are:

• Consulting.
• Professional practices—including accountants, lawyers, notaries, physicians, engineers and architects.
• Health care practitioners.
• Any business whose principal asset is the reputation or skill of one or more employees.
• Agricultural, fishing, forestry and mining industries.
• Financial and insurance.
• Utilities, real estate, food and accommodation.
• Arts, recreation and entertainment sectors.
• A business operating under a licensing or franchising agreement.

While the $15 million exemption would apply separately to each qualifying individual, the exemption could relate to a realized capital gain on a disposition in that year or a preceding taxation year. A qualifying individual would need to ensure that the qualifying share was issued for cash consideration or in exchange for employment services.

Capital gains exempt as part of the Canada Growth Incentive would be subject to a 30 per cent inclusion rate for alternative minimum tax purposes, similar to the current treatment of gains exempt under the lifetime capital gains exemption (LCGE). This new measure would limit a taxpayer’s ability to claim a capital gains exemption under the Canada Growth Incentive and the LGCE for the same transaction.

The limitation would generally not apply to a taxpayer’s ability to claim an exemption under the employee ownership trust exemption, which would allow qualifying taxpayers to use it and the Canada Growth Incentive exemptions in tandem.

This measure would apply for qualifying shares issued on or after Nov. 5, 2026 and before 2037.

Rollover for investments in small businesses

Individuals are allowed to defer the taxation on capital gains realized on qualifying dispositions of eligible small business corporation (ESBC) shares to the extent that the proceeds are used to acquire replacement ESBC shares in the year or following calendar year of disposition.

Budget 2026 proposed extending the period to acquire replacement ESBC to the year of disposition and the following three calendar years. If an individual enters into an agreement with an ESBC within the proposed three-year replacement period to invest capital upfront for shares issued at a later date, there is an additional proposal to defer the capital gain for an extra two years—which would extend the potential replacement period to up to five years.

If any of the proceeds are not ultimately invested in ESBC shares, interest at the prescribed rate would apply from the balance-due date for the year of disposition to the last day of the taxation year in which the gain is taxed.

The active business of the ESBC would be required to be carried on primarily in Canada at the time of share issuance and for a continuous period—the lesser of two years or the holding period—immediately following issuance.

These measures would apply to qualifying dispositions that occur on or after Jan. 1, 2027.

Instalment payments for individuals and corporations

Under current rules for most individuals, tax instalment payments are required if their combined federal-provincial net tax owing for the current year and either of the two previous years is more than $3,000. Similarly, corporations generally must make monthly or quarterly tax instalment payments if their federal tax liability is greater than $3,000 for the current or previous year.

Budget 2026 proposed increasing the threshold to $7,500 for individuals and corporations, with that figure to be indexed for inflation.

This measure would apply to taxation years that begin on or after Jan. 1, 2028.

Budget 2026 also proposed that individuals whose primary source of income is from a business—including professional or commission income—be allowed to make a single annual instalment payment instead of quarterly instalments. The annual instalment would be equal to two-thirds of the individual’s estimated net tax owing for the year and would be due by Dec. 31. The remainder would be due on the applicable balance-due date.

This measure would apply to the 2028 and subsequent taxation years.

Income tax return filing and balance-due dates for individuals

Budget 2026 proposed changing the T1 filing and balance-due dates to May 15 for all individuals, including those who are self-employed, as well as their spouses or common-law partners.

These measures would apply to the 2027 and subsequent taxation years.

Optional flat amounts for personal income tax deductions and credits

Individuals need to keep itemized receipts in order to claim certain deductions and credits.

As part of its efforts to simplify Canada’s tax system, Budget 2026 proposed optional flat-amount calculation methods for these deductions and credits:

• Moving expense deduction.
• Clergy residence deduction.
• Labour mobility deduction for tradespeople.
• Home accessibility tax credit.
• Adoption expense tax credit.

Individuals would still need to establish their eligibility for these deductions and credits. These measures would apply to the 2027 and subsequent taxation years.

Medical expense tax credit and disability supports deduction

Budget 2026 proposed simplifying the medical expense tax credit by reducing the documentation requirements for certain eligible expenses such as requiring a prescription or having an authorized medical practitioner certify the medical condition.

This measure would apply to the 2026 and subsequent taxation years.

The budget also proposed allowing individuals to claim an optional flat amount in respect of these expense categories:

• Gluten-free food expenses.
• Incontinence product expenses.
• Service dog expenses.

For a particular year, an individual who incurs expenses in an eligible category could choose to either claim the applicable flat amount or itemize and claim the expenses they actually incurred. Individuals who choose the flat amount would not be required to calculate the actual expenses incurred or retain relevant receipts.

These measures would apply to the 2027 and subsequent taxation years, except for the gluten-free food expenses that would be applicable for 2026 and subsequent years.

Deductibility of expenses against commission income

Employees who earn commission income are permitted to deduct employment expenses up to their commission income for the year. However, these employees may not deduct any travel or motor vehicle expenses under general provisions that apply to all employees.

Budget 2026 proposed eliminating these rules that prevent employees who earn commission from deducting travel and motor vehicle expenses under the general employee provisions. This change would apply to the 2027 and subsequent taxation years.

Scholarship, fellowship, and bursary income

An individual can claim a full or partial tax exemption for scholarship, fellowship and bursary income connected with enrolment in an elementary or secondary school educational program or a program in respect of which the individual is a qualifying student.

However, a program generally does not qualify as a qualifying or specified educational program if the student receives financial assistance for it from an arm’s-length person—such as an employer.

Budget 2026 proposed allowing a program to qualify even where a student received financial assistance from an arm’s-length person; this would apply to the 2027 and subsequent taxation years.

Registered retirement savings plans

A registered retirement savings plan (RRSP) is a tax-assisted vehicle for retirement savings accumulation and may be converted into a registered retirement income fund (RRIF) by a Canadian at the age 71.

Budget 2026 announced the government’s intention to merge the core features of the RRSP and RRIF under the Income Tax Act into what it calls an “RRSP for life” and to make other changes to improve and modernize the RRSP tax rules. This would eliminate the need for individuals to convert their RRSP to an RRIF.

Merging the RRSP and RRIF rules could require consequential changes to related legislation, so the federal government is seeking Canadians’ views on this proposal until Jan. 8, 2027.

Registered pension plans

A registered pension plan (RPP) is an arrangement registered by the Canada Revenue Agency (CRA) that complies with certain conditions under which an employer makes contributions to a fund that provides periodic payments to retired employees. If conditions are not met, the plan becomes a revocable plan.

Budget 2026 proposed providing express tax consequences where the CRA revokes the registration of an RPP after 2026. A revoked plan would be liable to pay a special tax (equal to 10 per cent of the fair market value of its property immediately prior to the revocation), be deemed to become a retirement compensation arrangement, and an amount equal to the fair market value of its property would be deemed to be contributed to this arrangement.

An individual pension plan (IPP) is a defined benefit RPP that is subject to additional conditions that do not apply to other RPPs.

Budget 2026 proposed expanding the IPP definition to include defined benefit RPPs under which all members are either related to a participating employer or do not deal at arm’s length with any member related to a participating employer.

This would apply as of Jan. 1, 2027. However, the budget also proposed that effective Jan. 1, 2028, IPPs would be subject to the same advantage rules, non-qualified investment rules and prohibited investment rules that currently apply to other registered plans of controlling individuals. If the value of an IPP’s assets exceeds 200 per cent of its pension liabilities, the plan would become a revocable plan for RPP registration purposes.

Mineral exploration tax credit and critical mineral exploration tax credit

Budget 2026 proposed extending the mineral exploration tax credit and critical mineral exploration tax credit for an additional five years for flow-through agreements entered into on or before March 31, 2032. These credits provide an additional tax incentive to individuals who invest in mineral exploration companies by passing along certain expenses to decrease the investor's taxes.

Antimony would also be made eligible for the critical mineral exploration tax credit for expenditures renounced under eligible flow-through share agreements entered into after Nov. 5, 2026 and on or before March 31, 2032.

Other personal tax measures

Additional personal tax measures proposed in Budget 2026 include:

• Adding a one-time groceries and essentials benefit supplement.
• Making the Canada Caregiver Credit refundable.
• Eliminating restrictions on the northern residents deductions.
• Expanding the intergenerational farm and fishing property rollover.
• Adding a qualifying family member permanently to the registered disability savings plan.
• Adding the apprentice vehicle mechanics' tools deduction.
• Expanding the deductibility of expenses by employed artists.
• Combining the volunteer firefighters and search and rescue volunteers tax credit.
• The Build Canada Workers Benefit.

International tax

International tax

How RSM Canada can help you

Taxable Canadian property

Non-residents are taxed on any income and gains from the disposition of taxable Canadian property (TCP). This generally includes property with a significant connection to the country such as Canadian real estate, resource properties and certain shares or interests whose value is derived primarily from such property and resources.

A purchaser that acquires TCP from a non-resident vendor is liable to withhold and remit an amount to the Canada Revenue Agency (CRA) on account of the vendor to facilitate collection of this tax—except where the vendor obtains a certificate of compliance.

The rules for determining the amount of the purchaser’s withholding obligation differ depending on the type of TCP disposed of by the vendor. A purchaser must generally withhold 50 per cent of the purchase price for specified TCP and 25 per cent for capital property other than specified TCP.

Budget 2026 proposed reducing the withholding amount for capital property from 25 per cent to 15 per cent and for specified TCP from 50 per cent to 30 per cent for dispositions that occur on or after Jan. 1, 2027.

In situations where a section 85 rollover applies to the disposition of TCP, Budget 2026 proposed exempting vendors and purchasers from the withholding and tax remittance requirements for fully tax-deferred section 85 rollovers of TCP. However, a section 85 election form must be filed and the purchaser provides a notice to the CRA setting out information regarding the transaction and the vendor within 30 days of the disposition.

Budget 2026 also proposed strengthening the anti-avoidance rule where there is a subsequent disposition of the transferred property or substituted property—and one of the main purposes of the series was to benefit from an exemption from Canadian tax.

The proposal would extend the applicable period from three years to five years and ensure that a subsequent disposition of property that principally derives its value from the transferred property or substituted property is also subject to the rule.

Interest deductibility limits

The excessive interest and financing expenses limitation (EIFEL) rules restrict the amount of net interest and financing expenses that may be deducted by certain taxpayers in computing taxable income.

Two exceptions to the EIFEL rules apply to interest and financing expenses on borrowings used by the taxpayer to either:

• Acquire or build purpose-built rental housing in Canada or convert a property into such housing, or
• Carry on a regulated energy utility business in Canada. Neither exception has been enacted into law.

Budget 2026 proposed expanding the two EIFEL exceptions to cover a borrower’s interest and financing expenses where the borrowed funds are used for eligible activities carried on by another corporation, trust or partnership within the same group of affiliated entities.

The budget also proposed expanding the definition of a regulated energy utility business in Canada to cover cases where the prices of all or substantially all of the products or services of the business are government-established, approved or guaranteed or established through a government-operated market that facilitates delivery for consumption or use in Canada.

These measures would apply to taxation years that begin on or after Oct.1, 2023.

Trust distributions to non-residents

A trust that distributes property to its beneficiaries is generally deemed to have disposed of the property at fair market value.

However, there are certain tax avoidance planning techniques that were historically used to transfer trust property on a tax-deferred basis to a non-resident beneficiary indirectly—which may result in an indefinite deferral or the permanent avoidance of Canadian tax.

Budget 2026 proposed broadening the current rollout denial rule to include indirect distributions of trust property to non-resident beneficiaries. The tax-deferred rollout would be denied for any property that is transferred to a corporation or partnership that has a direct or indirect non-resident shareholder or partner.

This would apply in respect of distributions of property that occur on or after Nov. 5, 2026.

Foreign income verification statement

Taxpayers must file a foreign income verification statement (Form T1135) with the CRA if they own specified foreign property with a total cost of more than $100,000 at any time in a taxation year or fiscal period. This includes income-earning property held outside of Canada—other than personal property—and property used in carrying on an active business.

Form T1135 provides a simplified reporting method if the total cost of a taxpayer’s specified foreign property is less than $250,000 throughout the year.

Budget 2026 proposed increasing the threshold above which Form T1135 must be filed from $100,000 to $200,000 and increasing the threshold for simplified reporting from less than $250,000 to less than $500,000.

This would apply to taxation years or fiscal periods that end after 2026.

Credits and incentives

Credits and incentives

How RSM Canada can help you

Clean electricity and clean technology investment tax credits

Budget 2026 proposed extending the clean electricity and clean technology investment tax credits by six years to eligible property that becomes available for use before 2041. The credit rate for the clean technology investment tax credit would continue to be halved for the last year of availability—which would be 2040 instead of 2034.

The proposed expansion would extend the clean electricity credit beyond interprovincial and territorial transmission to certain high-voltage intra-provincial transmission infrastructure based on jurisdiction-specific voltage thresholds. Distribution equipment would remain ineligible.

These measures would apply with respect to property that is acquired and available for use on or after Nov. 5, 2026.

Scientific research and experimental development (SR&ED) tax incentive program

Budget 2026 proposed a $930 million expansion of Canada’s SR&ED program. This would make certain commercialization-related activities eligible—specifically work to obtain regulatory approvals or certification and the costs of intellectual property (IP) protection.

These changes follow significant enhancements to the SR&ED program implemented over the past year.

Eligible activities would be expanded to include tests, technological validations and studies conducted to meet regulatory requirements for obtaining the initial approval or certification necessary to commercialize a product or process.

The activities would need to directly relate to a project eligible under the existing SR&ED rules; eligible expenditures for these new activities would generally follow the existing rules pertaining to wages and salaries, materials, contracting costs, overhead costs, and machinery and equipment.

Eligible expenditures would also be expanded to include costs related to the registration and maintenance of IP protection for IP developed during an otherwise eligible SR&ED project.

Eligible IP would include IP registered or protected as patents, certificates of supplementary protection, plant breeders’ rights or copyrighted software. Costs to enforce IP rights, such as litigation costs, would not be eligible.

While administrative fees paid to foreign IP offices could qualify, related supporting activities would generally need to be conducted in Canada. Recapture rules would apply if supported IP is subsequently disposed of.

These changes would apply to taxation years that begin on or after Nov. 5, 2026.

Helium exploration, development and resource expenses

Budget 2026 proposed extending the existing tax treatment of petroleum and natural gas activities to helium.

Helium exploration and development expenses would qualify as Canadian exploration expense (CEE) and Canadian development expense (CDE), respectively; the costs to acquire helium resource properties would qualify as the Canadian oil and gas property expense (COGPE).

This measure would be applicable to expenses incurred on or after Nov. 5, 2026 and follows the proposed productivity mega-deduction that would increase the deduction rate for CDE from 30 per cent to 100 per cent.

Indirect tax

Indirect tax

How RSM Canada can help you

GST/HST health measures

Tax relief is provided for certain health care services and products by exempting the services of certain health-care professionals and zero-rating certain medical devices.

Budget 2026 proposed changes so the GST/HST treatment of certain health care services and devices remains aligned with developments in the health-care sector.

The budget proposed adding qualifying massage therapists to the list of health-care practitioners whose professional services are exempt from the GST/HST—and adding devices that are specially designed for alternating electric field therapy for use by an individual with cancer to the list of medical devices eligible for zero-rating under the GST/HST.

These changes would apply after Nov. 5, 2026.

Pre-approval regime for GST/HST

Where an input is used to make both taxable and exempt supplies, a business must use an allocation method to determine the extent to which the input is used in the making of taxable supplies.

Certain large financial institutions are permitted to use their own GST/HST input allocation methods for a given fiscal year if they obtain pre-approval from the minister of national revenue before the beginning of every fiscal year.

Budget 2026 proposed allowing these financial institutions to apply for pre-approval of their GST/HST input allocation methods for three consecutive fiscal years, rather than only in respect of one fiscal year.

In the case of a three-year application, the minister of national revenue could approve the methods for the first fiscal year only—and the financial institution could make subsequent pre-approval applications for the second and third fiscal years and request to use the same or different methods.

This would apply in respect of fiscal years of a financial institution beginning after June 30, 2027.

Federal fuel excise tax licensing framework

Fuel excise tax is imposed on gasoline, diesel and aviation fuel imported into or manufactured in Canada; this is payable by the importer upon importation or by the manufacturer when the fuel is delivered to a purchaser. Licensed entities may qualify for relief when purchasing or importing fuel.

To keep up with modern fuel wholesaling practices, Budget 2026 proposed the following changes:

• Expanding the eligibility for a wholesaler license to businesses that resell fuel in the normal course of their business. This would come into force on the first day of the month following royal assent of the enacting legislation.
• Broadening the relieving rules for fuel purchased or imported by licensed manufacturers. This would come into force after Nov. 5, 2026.
• Introducing a time-limited payment in respect of certain past instances in which tax became payable more than once on the same quantity of fuel, where certain conditions are met. This would come into force on the day following royal assent of the enacting legislation.

Audit and enforcement

Audit and enforcement

How RSM Canada can help you

Objections to assessments

Budget 2026 proposed changing the deadline for individuals and graduated rate estates to object to a tax assessment.

Unless these taxpayers are objecting to the taxation year with the most recent filing deadline, they have 90 days from the day of sending of the notice of (re)assessment to file their objection.

Budget 2026 proposed extending this deadline to one year after the notice of (re)assessment is sent or two years from the tax return filing deadline for the taxation year under objection—whichever is later.

This amendment would also remove extension of time requests for individuals and graduated rate estates. While these requests allowed taxpayers to ask the minister of national revenue to consider an objection filed up to one year late, the minister was not required to review the objection.

These new deadlines would apply to assessments sent on or after the day that is three months after the related legislation receives royal assent.

Disclosure of tax debt to credit bureaus

Budget 2026 proposed allowing the Canada Revenue Agency (CRA) to disclose the tax debts under the Income Tax Act or debts related to GST/HST to credit bureaus.

The tax debts can only be disclosed where:

• The debt exceeds $50,000.
• No part of the debt is or could be subject to objection or appeal.
• The CRA has provided at least 30 days of notice.
• The CRA has taken reasonable steps to collect the debt and allowed the taxpayer to make reasonable repayment arrangements.

This measure would apply upon royal assent of the enacting legislation.

Administrative penalties

Budget 2026 proposed several measures to increase or expand applicable penalties.

These measures would be effective as follows:

• For penalties under the Income Tax Act to taxation years or fiscal periods ending after 2027.
• For penalties related to the Common Reporting Standard and other frameworks, to the 2028 and subsequent calendar years.
• For penalties related to the Excise Tax Act, Excise Act, 2001, Select Luxury Items Tax Act and Air Travellers Security Charge Act would generally apply to reporting periods that end after 2027.

Indexation

Budget 2026 proposed increasing certain fixed-dollar penalties, such as late filed election penalties, in the Income Tax Act to account for inflation.

Similarly, most fixed-dollar administrative penalties for GST/HST provisions of the Excise Tax Act, the Excise Act, 2001, the Air Travellers Security Charge Act and the Select Luxury Items Tax Act would also be increased.

Going forward, adjusted fixed-dollar penalty amounts would generally be indexed to inflation once every five years.

Medium and large corporations and partnerships

Budget 2026 proposed increasing penalties under the Income Tax Act for failing to provide required information on a form, failing to file certain tax forms, and failing to comply with certain other obligations under the Income Tax Act for medium and large corporations and partnerships.

Entity size would be defined as follows:

• Medium-sized partnership: $2 million but less than $10 million in gross revenue.
• Medium-sized corporation: Taxable capital employed in Canada of the corporation and any related corporations is between $10 and $50 million.
• Large-sized partnership: $10 million or more in gross revenue.
• Large-sized corporation: Taxable capital employed in Canada of the corporation and any related corporations in excess of $50 million.

Repeated failures

Budget 2026 proposed new penalties for repeated failures to file tax forms and repeated failures to comply with obligations under the Income Tax Act.

The penalty would only apply if the taxpayer was liable for a penalty for the same type of failure in any of the three preceding taxation years and the most recent failure was not corrected after being sent a notice, requirement or demand by the CRA.

Penalties for failures to comply with obligations would be excluded if another penalty is already applicable, while the penalties would be increased for medium and large-sized corporations and partnerships as discussed above.

Excise Act, 2001

Budget 2026 proposed increasing the penalty for failing to file a return under the Excise Act, 2001 from $250 to $1,000 following a ministerial demand to file.

Additional penalties

Budget 2026 provided for penalties related to failing to obtain or validate a self-certification, failing to apply due diligence or review procedures, or failing to keep, maintain or retain records as required.

These penalties would be applicable to reporting entities and individuals under the common reporting standard, the reporting rules for digital platform operators and the crypto-asset reporting framework.

Previously announced measures

Previously announced measures

Budget 2026 confirmed the government’s intention to proceed with the following previously announced tax and related measures—with any modifications resulting from consultations and deliberations since their release:

• Legislative and regulatory proposals released on Sept. 15, 2026, to implement the productivity mega-deduction.
• Legislative and regulatory proposals released on July 23, 2026—including investment tax credit for carbon capture, utilization and storage, investment income derived from assets supporting Canadian insurance risks, transfer pricing, hybrid mismatch arrangements and GST/HST reverse charge mechanism.
• Legislative proposals released on Jan. 29, 2026, to implement expanded reporting requirements for non-profit organizations.
• Legislative proposals released on Aug. 12, 2024, with respect to technical amendments to the Income Tax Act.
• Tax measures relating to non-compliance with information requests, announced in the 2024 federal budget.
• Legislative proposals released on August 4, 2023, with respect to tax-exempt sales of motive fuels for export.
• Legislative and regulatory proposals released on August 9, 2022 regarding technical amendments to the Income Tax Act and Income Tax Regulations—and remaining legislative proposals relating to excise duties.

Budget 2026 also reaffirmed the government's commitment to move forward as required with other technical amendments to improve the certainty and integrity of the tax system.