News & Updates in the Accounting/Tax World

NEW AS OF November 2025

Delivering a middle Class tax cut:

The government is moving forward with the proposal to deliver tax relief for Canadians by reducing the lowest marginal personal income tax rate from 15 per cent to 14 per cent, effective July 1, 2025.

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The so-called “middle-class tax cut” is said to benefit nearly 22 million Canadians by offering tax relief of up to $420 per person, saving two-income families up to $840 a year. (This measure is part of Bill C-4, currently before Parliament.)

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CRA 100 day Service Improvement Plan:

Many Canadians have faced difficulties accessing timely assistance from the CRA and every Canadian deserves easy access to the support they need, including timely assistance from our contact center service representatives and reasonable processing times.

Click here for more information on the 100-day Service Improvement Plan focuses on four key areas to strengthen service, improve access and reduce delays. CRA committed to delivering results for Canadians by December 11, 2025.​​

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Recognize a scam:

Scammers often contact you pretending to be from the CRA. Know when to be suspicious. The CRA will not:

• Send refunds or payments by e-transfer or text message

• Provide or accept payments by cryptocurrencies

• Demand or pressure immediate payment by:

  • Interac® e-transfer

  • Cryptocurrencies

  • Prepaid credit cards

  • Gift cards from any type of retailer

• Threaten to deport or arrest you, or put you in prison

• Use aggressive or threatening language

• Set up an in-person meeting in a public location to collect a payment

• Charge a fee to speak with a call centre agent

• Ask for personal or financial information in a voicemail or email

 

CRA Transitioning to Online Mail:

Did you give CRA your email address at some time in the past? Those who paper-file their tax returns may have given CRA their email address on the front of the tax return. By doing this, you have authorized CRA to send you online mail, in My Account. If you gave CRA your email address but did not have a CRA My Account, you would have to register for the account in order to get your mail. CRA will not actually send your mail via email - they will send you a notification that you have online mail in My Account.

If you have My Account and have selected to receive paper mail, CRA may be transitioning you to online mail, or may have done so already.

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NEW AS OF March 2025

Direct Deposit Update​​​

You can not sign up for or update your direct deposit by phone or EFILE beginning March 24, 2025.

You can still sign up for or update your direct deposit:

• Online using your CRA account

• Through your Canadian bank or credit union

• By mail

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NEW AS OF January 2025

Canada Carbon Rebate (CCR) for Individuals - Final Payment Notice​​​

If you’re entitled to receive the CCR for the month of April 2025, you can expect to receive the final payment starting April 22, 2025.  If you file after April 30, 2025, you will receive your final payment once your 2024 return is assessed.

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NEW AS OF JUNE 2024

Canada Carbon Rebate for Small Businesses​

​The Canada Carbon Rebate for Small Businesses is a refundable tax credit announced in Budget 2024 to return a portion of Federal fuel charge proceeds to eligible Canadian Controlled Private Corporations (CCPCs).

To be eligible for the retroactive payment with respect to the 2019 through 2024 fuel charge years (a fuel charge year rounds from April 1 to March 31), a CCPC must:

• Have employed one or more persons in a designated province in the calendar year in which the fuel charge year begins;

• Have had 499 or fewer employees throughout Canada in that calendar year;

• File a tax return for its tax year ending in 2023 no later than July 15, 2024.​

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NEW AS OF APRIL 2023:

First Home Savings Account (FHSA) – Tax-Free​​

• Help Canadians over 18 years old save for a first-time home

• Tax free when the funds are withdrawn to buy a home – contribution carries forward to next year if it hasn’t been used

• Maximum participation period is 15 years

• Up to $8000 a year - the lifetime contribution limit is $40,000

• 2 people can each use their FHSA as well as their RRSP Home Buyers Plan to jointly purchase their home

• Contributions that you make to your first home savings accounts (FHSAs) are generally deductible on your income tax and benefit return. It is important to note that transfers from your registered retirement saving plans (RRSPs)  to your FHSAs are not deductible.

• If you are not quite sure you won't be able to purchase a home within 15 years you should probably delay opening an FHSA

• If you do not buy a home, and unused savings in your FHSA may be transferred to RRSP or can be withdrawn as taxable income

• FHSA may be available through your financial institution to get started 

• For more information see link below:

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/first-home-savings-account.html

 

NEW AS OF OCTOBER 2016:

Selling of Principal Residence Requirement to Report to Canada Revenue Agency​​

• Income Tax Amendments came in effect, whereby reporting of principal residence sales was mandatory in Alberta and all of Canada.

• The principal residence exemption allows Canadian homeowners to avoid paying taxes on capital gains (profits) from the sale of their primary residence.  According to the Income Tax Act, homeowners are now required to report every property sold (including the property where the tax payer lives) on their tax return.  Even through reporting principal residence sales is required, any profits fall under the principal residence exemption.  Previously, the CRA allowed taxpayers to not report the sale at all.  In an effort to ensure only eligible home owners take advantage of this exemption, new tax reporting laws are now in effect.  Mandatory reporting of principal residence sales ensures that the government can track how many such sales any person makes.

• Reporting of any such transaction must be completed, on either a modified Form T2091 Designation of a Property as a Principal Residence By An Individual or on a Schedule 3, Capital Gains of the T1 Income Tax and Benefit Return.  This law applies, even if the gain falls exclusively under the principal residence exemption.