On November 5, 2026, the Federal Government tabled Budget 2026, which proposed various provisions impacting individuals and businesses.

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Some of the items of interest include the following:

• Individual tax deadlines – The filing and payment deadlines for all individuals, including those who are self-employed, would move to May 15 starting with the 2027 taxation year.

• Capital gains exemption (Canada Growth Incentive) – A new exemption of up to $15 million per qualifying individual for each qualifying business would be available, subject to restrictive eligibility conditions.

• Foreign property reporting – The cost threshold for filing Form T1135 would increase from $100,000 to $200,000, with the simplified reporting threshold increasing to $500,000.

• Tax penalties – Various fixed-dollar tax penalties would increase and be indexed, with higher penalties for medium and large corporations and partnerships and certain repeated failures.

• Further tax simplification – The government would consult on corporate loss transfers within wholly owned groups, an “RRSP for life” and broader changes to the preferred share tax regime.

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Please do not hesitate to contact us if you have any questions.

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