December 2025 has brought several important tax and compliance updates from the CRA and federal regulators. While we did not see major tax-rate changes or benefit revisions this month, there are meaningful developments that impact individuals, small businesses, payroll teams, and tax advisors. Below is a clear and practical summary of what matters most.
1. CRA Issues Warning on Aggressive Insurance-Based Tax Schemes
The CRA released a national advisory highlighting its concerns over aggressive tax schemes involving insurance products — especially “investment” or “insured retirement” structures promoted as ways to avoid tax on passive investment income. These arrangements are often marketed to high-net-worth taxpayers seeking tax-free growth.
Why this matters:
CRA is signalling enhanced audit activity, with a focus on schemes where insurance is used primarily to shelter investment gains rather than genuine risk protection.
Advisor takeaway:
Review clients with leveraged insurance structures, corporate-owned policies, or strategies aiming to convert taxable investment income into tax-free withdrawals. Proper documentation of real insurance needs is critical.
2. CRA Ends T4A Penalty Moratorium in the Trucking Sector
After years of warnings, CRA has officially lifted its moratorium on T4A penalties for certain payments in the trucking industry. This is directly tied to the ongoing crackdown on “Driver Inc.” misclassification.
Impact:
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Carriers must issue T4As for qualifying contractor payments.
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Expect more payroll audits assessing employee vs independent contractor status.
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Non-compliance will now carry full penalties.
Advisor takeaway:
Trucking companies should update contracts, begin issuing T4As where appropriate, and address historical exposure proactively.
3. Taxpayers’ Ombudsperson Highlights Delays in Processing Disability-Related Claims
The Ombudsperson publicly called on CRA to improve processing delays affecting persons with disabilities — especially for complex T1 adjustments linked to the Disability Tax Credit (DTC).
Impact:
Families often wait months for retroactive refunds related to medical and disability credits.
Advisor takeaway:
Encourage affected clients to maintain updated medical documentation. For hardship cases, CRA escalation may be appropriate.
4. CPP and OAS Regulations Updated (Technical but Important)
Two regulatory amendments were published in the Canada Gazette Part II earlier this month:
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SOR/2025-230 – Canada Pension Plan Regulations Amendment
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SOR/2025-231 – Old Age Security Regulations Amendment
These do not change benefit amounts, but modernize administrative rules around entitlement, overpayment recovery, and processing.
Advisor takeaway:
Retirement-planning and payroll teams should stay alert for further guidance from CRA and Service Canada.
5. No New Ontario Tax Updates This Month
A review of Ontario Ministry of Finance bulletins confirms no new personal, corporate, or sales-tax changes released so far in December 2025.
Final Thoughts
While December has been quieter than usual, CRA’s warnings, enforcement changes, and administrative updates signal ongoing oversight — especially in the insurance, payroll, disability-support, and retirement-benefit areas.
As always, proactive planning reduces surprises and maximizes compliance.
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