CPP Contribution Rate Proposal
The federal government has proposed reducing the base CPP contribution rate from 9.9% to 9.5%, effective January 1, 2027. If approved, both employers and employees could benefit from lower CPP contributions.
Vehicle Allowance Rates Increase
The CRA’s prescribed tax-free automobile allowance for business travel has increased to 73¢/km for the first 5,000 kilometres and 67¢/km thereafter for 2026. Employers should review reimbursement policies accordingly.
Greenhouse Investment Incentive
The federal government has proposed 100% immediate expensing for eligible greenhouse investments, encouraging modernization and expansion in the sector.
Lower U.S. Citizenship Renunciation Fee
The fee to renounce U.S. citizenship has been reduced to $450, although U.S. tax filing obligations continue until citizenship is formally relinquished.
Strong Accounting Matters
A recent Tax Court decision reinforced that inadequate bookkeeping and weak internal accounting controls can result in CRA reassessments and gross negligence penalties. Businesses should ensure accurate financial records are maintained throughout the year.
Related-Party Transactions Require Care
Selling corporate assets to shareholders or family members below fair market value may result in denied tax deductions and taxable shareholder benefits. Proper valuation and documentation remain essential.
GST/HST on Residential Property
Individuals who repeatedly build, renovate, or sell residential properties may be considered builders for GST/HST purposes, even if they temporarily occupy the property.
Property Ownership & Beneficial Ownership
Adding a family member to the legal title of a property does not necessarily change beneficial ownership, but it can create important tax implications. Professional advice is recommended before making ownership changes.
Canada Child Benefit
Shared custody for Canada Child Benefit purposes depends on where the child actually resides, not simply the amount of parenting time.
Labour Mobility Deduction
Proposed changes would reduce the minimum qualifying distance and increase the maximum deduction available to eligible construction tradespeople working temporarily away from home.
