AsraniCPA Weekly Tax Brief — August 29, 2026
For the seven days ending August 29, the principal new development is Canada’s tariff-response package. No material new federal or Ontario T1, T2, GST/HST, or CRA filing measure was identified.
1. New tariffs on specified U.S. goods
Status: Announced; implementation scheduled
Effective: September 8, 2026, at 12:01 a.m.
Canada announced new surtaxes of 15%, 25%, or 50% on specified U.S.-origin goods representing approximately $27.6 billion of imports. Affected categories include steel, dairy products, appliances, agricultural equipment, pulp and paper, electronics, furniture, clothing, cosmetics, and other goods.
The Finance Canada list was updated August 26. Goods already in transit when the measures take effect will be excluded; CBSA administrative instructions are still expected. Finance Canada announcement and detailed tariff-item list.
Who is affected: Canadian importers, distributors, manufacturers, retailers, restaurants, and businesses purchasing affected U.S. goods.
Why it matters: Import costs, inventory valuation, margins, pricing, and working-capital requirements may change immediately. GST on imported goods is calculated on the value including applicable duties, so the surtax can also increase GST paid at importation, although eligible registrants may recover that GST through ITCs. CRA import-GST guidance.
Client action: Identify affected HS tariff codes, confirm origin rather than supplier location, document goods in transit, and update landed-cost and cash-flow forecasts before September 8.
2. EI and workforce-retention measures announced
Status: Proposed/administrative; detailed operating rules pending
The federal government announced:
- One-year extensions of the waived EI waiting period and the rule allowing EI without first exhausting separation payments;
- An eight-month extension of additional benefits for qualifying long-tenured workers;
- A new one-year EI measure for certain workers whose latest job loss was involuntary; and
- A forthcoming Workforce Retention and Retraining Program combining EI Work-Sharing with the Worker Retention Grant, including training and administration support of up to $1,000 per participant.
Who is affected: Tariff-affected employers considering reduced hours, layoffs, retraining, or severance arrangements.
Why it matters: These measures may provide alternatives to layoffs, but they do not currently change CPP, EI, or income-tax withholding calculations.
Client action: Flag employers experiencing reduced orders or cash-flow pressure, but wait for Service Canada eligibility and application instructions before recording a receivable or assuming approval.
3. New and expanded business financing
Status: Administrative programs; immediate or September 2026 implementation
The $7.5-billion support package includes:
- An additional $1.5 billion for the Regional Tariff Response Initiative beginning in September;
- Non-repayable contribution limits increasing from $1 million to $3 million;
- Liquidity assistance of up to $2 million;
- A new $500-million BDC lending stream offering eligible businesses loans of $250,000 to $5 million; and
- BDC’s minimum annual-revenue threshold falling to $1 million for direct tariff programs.
The Canada Strong Diversification Fund was announced as effective immediately. Program details.
Client action: Ask affected clients to preserve evidence of tariff exposure, lost orders, margin compression, payroll levels, cash-flow forecasts, and proposed investments. Confirm the tax and accounting treatment only after final contribution or loan terms are available.
No significant change this week
- CRA administration: No material new general filing or administrative guidance.
- GST/HST: No new rate, filing, rebate, or ITC rule; only the import-GST consequence noted above.
- T1 personal tax: No material new measure.
- T2 corporate tax: No material new measure or federal bill advancement.
- Ontario: No material Ontario tax or filing development requiring a client alert.
- Canada Gazette: The August 29 edition did not contain a material Income Tax Act or Excise Tax Act regulation. Canada Gazette, August 29.
Upcoming compliance dates
- August 31: Review T2 returns due for corporations with February 28, 2026 year-ends. T2 returns are generally due six months after year-end. CRA T2 deadline guidance.
- September 15: Third 2026 personal-income-tax instalment. CRA instalment dates.
- September 15: August source deductions for regular monthly payroll remitters. CRA payroll-remittance rules.
