Weekly Canada Tax Update – Administrative Changes, No New Tax Rates This Week
This week’s Canada tax update focuses on administrative and compliance-related changes, rather than new tax rates or credits. While there were no federal or Ontario tax rate changes announced, several updates from the Canada Revenue Agency (CRA) and Parliament are still important for taxpayers, businesses, and advisors.
1. CRA Administrative Updates to the 2025 Income Tax Package
The CRA has made administrative changes to the 2025 income tax package. These changes relate to how returns are filed, not how much tax is paid.
What changed:
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Certain low-usage schedules and worksheets have been removed or consolidated.
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Paper filing has been further streamlined.
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More calculations and guidance are now expected to be completed through CRA systems and certified tax software.
What did NOT change:
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❌ No new federal tax rates
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❌ No new credits announced
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❌ No changes to Ontario tax brackets
Who is affected:
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Paper filers
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Manual tax preparers
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Taxpayers relying on prior-year paper packages
What to do:
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Preparers should update 2025 checklists and organizers.
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Taxpayers should avoid relying on old paper forms and consider CRA My Account or e-filing.
2. CRA Account Security: Backup MFA Required Starting February 2026
CRA has confirmed that beginning February 2026, users of CRA online services must have a backup multi-factor authentication (MFA) option on file.
Who is affected:
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Individuals using My Account
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Businesses using My Business Account
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Representatives using Represent a Client
Practical impact:
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Access issues may occur if a primary device is lost or unavailable.
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Businesses relying on one employee’s phone or email are particularly exposed.
Recommendation:
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Review CRA access now and add backup MFA methods well before 2026.
3. Federal Budget 2025 Implementation Act (Bill C-15)
Bill C-15, which implements selected Budget 2025 measures, has progressed through second reading and is currently at committee stage.
Key point:
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This legislation is not law yet.
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Any tax planning relying on Budget 2025 proposals remains conditional until Royal Assent.
Recommendation:
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Document assumptions and avoid locking in transactions solely based on proposed measures.
Provincial Snapshot (Priority Review)
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Ontario: No new Ontario tax changes released this week.
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Québec: Recent changes to the Voluntary Disclosure Program apply to applications filed after December 17, 2025.
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British Columbia: Targeted PST guidance updates were issued (no rate changes).
Motor Vehicle Expense & Benefit Rates (2025)
A review of CRA publications and the Canada Gazette confirms:
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No new or updated 2025 automobile expense or benefit rate tables were released this week.
We will include any updates immediately once officially published.
Professional Takeaway
Even without new tax rates, administrative changes matter. Filing methods, CRA access rules, and legislative progress can all impact compliance, planning, and risk management.
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