The Joint Committee on Taxation of the Canadian Bar Association and CPA Canada ("Joint Committee") submitted detailed comments to Finance on the draft tax legislation released on August 15, 2025. The submission highlights technical issues and concerns with some of the proposals. The goal of the Committee's feedback is to help refine the legislation so that it achieves its policy objectives without imposing unnecessary compliance burdens or creating unintended consequences
The following are the issues raised in the submission:
- the overbreadth of the new reporting obligations for non-profit organizations
- a typographical error with the proposed definition of "capital dividend account" in s. 89(1)
- that the carveout from EIFEL for purpose-built residential rentals should include land that can reasonably be considered to be necessary for the use and enjoyment of the property
- that regulated energy businesses should be able to revoke an election under s.18.2(20)
- that the proposed amendments to accommodate domestic minimum top-up tax regimes should be retroactive to December 31, 2023
- that the proposed amendment to the definition of "adjusted taxable income" in the EIFEL rules could potentially double count non-capital losses
- concerns that the proposed amendments to s. 85.1(4) and s. 87(8.3) could lead to inequities.
The submission is attached.
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Ryan Minor
Chartered Professional Accountants of Canada
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