Canada: Tax Authorities

On July 2, 2026, the Canada Revenue Agency (CRA) published its updated Guidance on the Common Reporting Standard (Updated CRS Guidance).

Canada's proposed Productivity Mega Deduction would allow businesses to immediately write off the full cost of newly acquired capital assets, including aircraft and flight simulators, rather than spreading deductions over multiple years. This permanent change to the capital cost allowance regime could significantly benefit the business aviation industry, though taxpayers must carefully consider timing, income requirements, and documentation to maximize the deduction's value.

The Canada Revenue Agency has confirmed that tax audits can be settled before completion, but significant cases require multiple layers of internal review and approval. Understanding CRA's internal settlement processes, including the role of the Audit File Resolution Committee, can help businesses develop effective strategies for resolving disputes efficiently and avoiding costly objections.

The GST/HST New Housing Rebate lets a purchaser recover part of the GST/HST paid on a newly built or substantially renovated home used as a primary residence.

A CRA refusal is not always something that can be challenged through the normal tax objection and appeal system. The first question is usually whether the taxpayer is disputing a discretionary CRA decision, which may be reviewed by the Federal Court, or disputing the correctness of a tax assessment, which generally belongs in the Tax Court of Canada.

Discovering previously unreported offshore assets or foreign income can instantly trigger significant financial and legal anxiety for Canadian taxpayers.

The Canada Revenue Agency (CRA) employs a sophisticated, risk-based methodology to select taxpayers for a tax audit, ensuring compliance across the vast Canadian tax system.

A missed Canada Revenue Agency (CRA) email notification may cause Canadian taxpayers to lose CRA objection rights after a CRA tax reassessment. The CRA has moved most of its correspondence with taxpayers online.

Canadian taxpayers who pay for a lawyer often assume the bill is simply a cost of doing business, or a cost of life, with no tax consequence either way.