{"id":8210,"date":"2026-08-01T16:50:34","date_gmt":"2026-08-01T20:50:34","guid":{"rendered":"https:\/\/balbir.ca\/?p=8210"},"modified":"2026-08-01T17:21:42","modified_gmt":"2026-08-01T21:21:42","slug":"tax-tidbits-august-2026","status":"publish","type":"post","link":"https:\/\/balbir.ca\/?p=8210","title":{"rendered":"Tax Tidbits – August 2026"},"content":{"rendered":"\t\t
\n\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

CPP Contribution Rate Proposal\u00a0<\/b><\/p>

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.\u00a0<\/p>

Vehicle Allowance Rates Increase\u00a0<\/b><\/p>

The CRA’s prescribed tax-free automobile allowance for business travel has increased to 73\u00a2\/km for the first 5,000 kilometres and 67\u00a2\/km thereafter for 2026. Employers should review reimbursement policies accordingly.\u00a0<\/p>

Greenhouse Investment Incentive\u00a0<\/b><\/p>

The federal government has proposed 100% immediate expensing for eligible greenhouse investments, encouraging modernization and expansion in the sector.\u00a0<\/p>

Lower U.S. Citizenship Renunciation Fee\u00a0<\/b><\/p>

The fee to renounce U.S. citizenship has been reduced to $450, although U.S. tax filing obligations continue until citizenship is formally relinquished.\u00a0<\/p>

Strong Accounting Matters\u00a0<\/b><\/p>

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.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\"\"\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

Related-Party Transactions Require Care<\/b><\/p>

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.\u00a0<\/p>

GST\/HST on Residential Property\u00a0<\/b><\/p>

Individuals who repeatedly build, renovate, or sell residential properties may be considered builders for GST\/HST purposes, even if they temporarily occupy the property.\u00a0<\/p>

Property Ownership & Beneficial Ownership\u00a0<\/b><\/p>

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.\u00a0<\/p>

Canada Child Benefit\u00a0<\/b><\/p>

Shared custody for Canada Child Benefit purposes depends on where the child actually resides, not simply the amount of parenting time.\u00a0<\/p>

Labour Mobility Deduction\u00a0<\/b><\/p>

Proposed changes would reduce the minimum qualifying distance and increase the maximum deduction available to eligible construction tradespeople working temporarily away from home.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

Why Business Financing Matters\u00a0 Every business reaches a stage where additional capital is needed to support growth, manage cash flow, purchase equipment, expand operations, or invest in new opportunities. Finding the right financing solution is an important business decision that can influence both short-term performance and long-term success. Understanding the available options helps business owners […]<\/p>\n","protected":false},"author":1,"featured_media":8225,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[17],"class_list":["post-8210","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-updates","tag-hiring"],"featured_image_src":"https:\/\/balbir.ca\/wp-content\/uploads\/2026\/08\/Tax-TIdbits-Aug-2026-600x400.jpeg","featured_image_src_square":"https:\/\/balbir.ca\/wp-content\/uploads\/2026\/08\/Tax-TIdbits-Aug-2026-600x600.jpeg","author_info":{"display_name":"balbircpa","author_link":"https:\/\/balbir.ca\/?author=1"},"_links":{"self":[{"href":"https:\/\/balbir.ca\/index.php?rest_route=\/wp\/v2\/posts\/8210","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/balbir.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/balbir.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/balbir.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/balbir.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8210"}],"version-history":[{"count":13,"href":"https:\/\/balbir.ca\/index.php?rest_route=\/wp\/v2\/posts\/8210\/revisions"}],"predecessor-version":[{"id":8226,"href":"https:\/\/balbir.ca\/index.php?rest_route=\/wp\/v2\/posts\/8210\/revisions\/8226"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/balbir.ca\/index.php?rest_route=\/wp\/v2\/media\/8225"}],"wp:attachment":[{"href":"https:\/\/balbir.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8210"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/balbir.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8210"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/balbir.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8210"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}