Bill C-31: Royal Asset and New CRA Powers Could Come Soon

Changes are coming to the Income Tax Act and both you and your clients will all be affected with new tax risks including longer tax audits. Bill C-31, which passed second reading in the House of Commons on June 3 and is now at committee stage, contains elements of previous Federal Budgets that will expand the CRA’s compliance and enforcement powers. Here’s what you need to know and pass along to your clients:

The days of portfolios made up solely of stocks and bonds are long gone. We are now in an era in which investors are looking for alternatives to traditional investments like mutual funds. The field of alternative investments is a broad one and it means keeping up to date on all of the tax implications for your clients who choose one or more of those investments. It’s one that will be discussed in more detail at the Acuity Conference for Distinguished Advisors (DAC) on November 22-24. Early registration with significant savings ends June 30. A new edition of the Real Tax News Podcast also covers the topic. Here’s a primer on what you’ll learn more about: 

In this month’s Knowledge Bureau Report poll we are asking you to weigh in with your experience in response to CRA’s May 6 News Release, in which it congratulated itself for “improved service” to taxpayer this tax season. Our readers are in almost complete disagreement so far. The comments below from Amanda Zais, DFA-Tax Services Specialist in Kelowna, B.C. are especially insightful from a busy “feet on the street” professional. Please be sure to give us your opinion before month’s end.

As 76% of Canadian business owners prepare to exit their businesses over the next decade, according to CFIB, the need for leadership, succession planning, and business management expertise continues to grow, especially for professional advisors and their business clients. Knowledge Bureau's New Business Growth Training Package helps professionals build the skills needed to scale and lead successfully. It features a must-attend half day Business Builder Summit on June 18, which is included at no charge when you register in the DMA-Small Business Services Specialist Program. Here are the details:

Canadians are current in the midst of the largest intergenerational wealth transfer in history, with approximately $1 trillion in personal wealth expected to be transferred from one generation to the next between 2016 and 2026. As a result, the conversations tax and financial advisors need to have with families are becoming more complex. The DMA™ – Retirement & Estate Planning Specialist Program is a new credential you can earn from Knowledge Bureau to expand these much needed service offerings to clients, with confidence. Register by June 15, for Summer School Savings.

The federal government has made its intentions clear that there will be an expansion of those who are eligible to certify an individual for the Disability Tax Credit. Our May poll results are in. 83% of our readers voted against allowing public trustees, guardians and departments supporting Indigenous Services to certify impairments for the Disability Tax Credit.

In the market for a new home? The Home Buyers Plan (HBP), which lets first-time buyers withdraw RRSP funds on a tax deferred basis to buy a home, became a key part of the government’s effort to make homeownership more accessible. Bill C‑30 has recently put several of these proposed changes into law, something taxpayers and their advisors should be discussing this month as tax seasons 2026 winds to a close. Here are the key talking points: