Canadian tax news

Your source for the latest Canadian tax news and updates on changing tax laws. Working collaboratively with the Canada Revenue Agency (CRA) we aim to bring clarity on pressing tax questions and tax updates.

Please visit our archive page for content from 2020. There are no posts on this page older than 2020.


We know you’re busy and it can be hard to keep track of what’s new. We’ve put together a list of some past news items and blogs that you may have missed but are still worth a read.

Further to our June 13 news item, the CRA has now published an updated T2 Schedule 63 –  Return of Fuel Charge Proceeds to Farmers Tax Credit which appears to now correctly compute the credit. We understand that tax software providers have included the update, or will soon be including it, in their software.

As reported in our November 9, 2021, news item, the Disability Tax Credit Promoters Restriction Act (DTCPRA) has been suspended until further notice due to a court injunction.

While the court case has not yet concluded, the CRA has updated its interpretation of the services to be included in the $100 DTC fee cap. Question 7 on the CRA Q&A to the DTCPRA webpage now indicates that the $100 DTC fee cap on promoters will not apply to work done to assist with the filing of notices of objection, where previously the CRA only listed work related to appeal to the Tax Court of Canada.

The CRA has updated Form T2201, Disability Tax Credit CertificateGuide RC4064 Disability-Related Informationand other online resources and tools to reflect amendments included in Bill C-19 (Budget Implementation Act, 2022, No. 1) to improve access to the Disability Tax Credit (DTC). The CRA has indicated that it will continue to enhance the DTC webpages to make it easier for individuals to review eligibility for the credit, to apply and to learn what other benefits they may have access to if they qualify.

We continue to provide feedback to the CRA on the DTC forms, tools and resources and will keep you informed of relevant new developments.

On June 9th, 2022, Bill C-8, An Act to implement certain provisions of the economic and fiscal update tabled in Parliament on December 14, 2021 and other measures, received Royal Assent.

We have learned that there is an issue with new T2 Schedule 63 (Return of Fuel Charge Proceeds to Farmers Tax Credit) as the calculation on this form does not appear to agree with the draft legislation for the credit contained in Bill C-8 (Economic and Fiscal Update Implementation Act, 2021). For corporations that are allowed to claim the credit, the credit is based on the total of all amounts deducted in the year by the corporation in computing Part I income from farming activities, excluding inventory adjustments and non-arm’s length transactions. However, on Schedule 63, the CRA has used line 9898 from T2 SCH 125 as the starting point for the calculation. This is incorrect, as this line represents total farm expenses for accounting purposes from the corporation’s financial statements which may not necessarily agree with what the corporation actually deducted for tax purposes. The CRA is reviewing the issue.

We will provide an update as more information is obtained.

We understand that the CRA has released a new version of T2 Schedule 141 in the May 2022 tax preparation software updates. The new form allows CPAs to better describe their involvement in T2 preparation. We have summarized how we assume the new form will be completed for the following common engagements.

The Joint Committee on Taxation (JC) made a submission in response to the government’s consultation on the draft legislation released on February 4, 2022 relating to the Reporting Requirements for Trusts.

As noted in our April 27, 2022 news item, the CRA has indicated that since the final draft legislation on immediate expensing has been released, taxpayers can include immediate expensing in the calculation of their capital cost allowance (CCA) deduction.

The federal government has recently released a Notice of Ways and Means Motion (with draft legislation) to implement certain provisions included in the 2022 federal budget as well as some other previously announced measures. Included in the release are final draft rules on the immediate expensing rules first announced in the 2021 federal budget and then expanded in the 2022 budget.

In a communication to us, the CRA stated that since final draft legislation was released, taxpayers can include immediate expensing in the calculation of their capital cost allowance (CCA) deduction. However, adjustment requests to recognize immediate expensing for returns that have already been filed cannot be processed until after Royal Assent has been received.

On April 20, the Canada Revenue Agency (CRA) posted a reminder on the EFILE news and programs update page on the proposed Return of Fuel Charge Proceeds to Farmers Tax Credit and the Eligible Educator School Supply Tax Credit. The CRA has again stated that returns containing a claim for these credits cannot be assessed until Bill C-8 (Economic and Fiscal Update Implementation Act, 2021) receives Royal Assent. We provided more background information on this issue in our March 3 news item and considerations for taxpayers who are in a refund position.

As noted previously in our December 21, 2021 news item, Bill C-2 (An Act to provide further support in response to COVID-19) contained a change that may restrict Canada Emergency Wage Subsidy (CEWS) claims made by a publicly traded company or a subsidiary of such a company that paid dividends to an individual who held common shares. One area of confusion was on the effective date of the change.

The Canada Revenue Agency (CRA) recently posted an update on the filing requirements for individuals who are applying the tax changes in Bill C-208 for intergenerational transfers.

Watch now: 2022 Federal Budget Tax Highlights webinar

Deputy Prime Minister and Minister of Finance Chrystia Freeland tabled Canada’s federal budget on April 7, 2022. CPA Canada hosted a webinar in English and French to provide an overview of the most important tax measures contained in this year’s budget and to address some key questions raised by members. In addition, you can download the Tax Highlights.

The Canada Revenue Agency (CRA) publishes its audit manuals and policy documents on the following page. The CRA has recently published 3 updated policies.

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