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:

As tax professionals, you are keenly aware of the constant changes our federal government makes to the Income Tax Act. Adjustments are made, and you must adapt. Not often, though, is a tax eliminated altogether. But in the case of the Underused Housing Tax (UHT), that is exactly what has happened – it was cancelled in the federal budget of November 4, 2025, but Canada’s underused housing taxes have not been eliminated. Here’s what you need to know for tax season 2026.

The CRA requires companies to issue T4A slips reporting fees-for-service payments made to subcontractors. Given the breadth and administrative burden of this requirement, the CRA introduced a temporary moratorium on penalties for failure to file in 2011. But things have changed now, in particular for the trucking industry.

As families navigate one of the largest intergenerational wealth transfers in history, demand is growing for coordinated, values-based financial leadership. In response, experienced tax and financial professionals are increasingly turning to the Real Wealth Manager™ (RWM™) program, an advanced professional pathway focused on intergenerational wealth stewardship.

As regulatory complexity, digital transformation, and client expectations continue to rise, many tax, accounting, and financial professionals are rethinking how they build sustainable, future-ready careers. Generalist knowledge is no longer enough. Increasingly, credibility is tied to demonstrated specialization. One pathway is the Distinguished Master Advisor™ (DMA) designation offered by Knowledge Bureau, which has a special offer this Valentine’s Day week to help you love your new career moves!

February 27, 2026 is the last date to comment on a raft of draft legislation released at the end of January covering provisions from the November 4, 2025 Federal budget,  the Fall 2024 Economic Statement, amendments from Budget 2021 regarding Hybrid Mismatching Arrangements, technical changes to two investment tax credits, dating back to 2022 and 2023, as well as corporate changes regarding the Global Minimum Tax.  The key measures to note appear below:

Did you know the CRA conducts approximately 350,000 audits and reviews on an annual basis? This means there’s about a one in ten chance that your clients will be audited or reviewed by CRA, in any given year.  Now, CRA- initiated reviews will be enhanced by AI profiling.  It’s critical for you to insist on pertinent tax information so you can help clients avoid audit and tax evasion charges in particular.  It’s very expensive, as a few recently prosecuted taxpayers just found out: