Commitments
Fund the administration of Clean Economy Investment Tax Credits
Provides administrative funding to the Canada Revenue Agency to process claims and clear backlogs associated with the Clean Economy Investment Tax Credits.
Economy and TradeReinvest savings into AI and process automation for CRA compliance and collection
The CRA will leverage artificial intelligence and process automation to transform data and analytics systems for compliance and collection, aiming to reduce repetitive risk-scoring tasks by 50% and generate a positive fiscal impact of $1.1 billion annually from 2028-29 onwards.
Government ReformProvide $77 million to the CRA to address worker misclassification and non-compliance
Invests $77 million over four years to fund a CRA program targeting non-compliance in personal services businesses and lifts the moratorium on reporting fees for trucking industry services.
Economy and TradeDeploy artificial intelligence to expedite low-risk SR&ED claim processing
Integrates artificial intelligence into the Canada Revenue Agency's administration of the SR&ED program to automatically identify and fast-track low-risk claims, reducing unnecessary audit interventions.
Government ReformReduce the transfer pricing documentation submission window to 30 days
Taxpayers will be required to provide transfer pricing documentation within 30 days, down from the previous 3-month allowance, to expedite CRA risk assessments and audits.
Economy and TradeGenerate $1.1 billion annually in positive fiscal impact through CRA compliance reinvestments by 2028-29
By reinvesting in AI and process automation for compliance and debt collection, the CRA targets an additional $1.1 billion in annual revenue starting in the 2028-29 fiscal year.
Economy and TradeEliminate the Underused Housing Tax and luxury tax on aircraft and vessels
The government will abolish the Underused Housing Tax as well as the luxury tax applied to aircraft and vessels in order to generate administrative savings and eliminate inefficiencies.
Economy and TradeWind down CRA business units for the Digital Services Tax, Federal Fuel Charge, and Canada Carbon Rebate
The CRA will dismantle the administrative business units previously responsible for managing the Digital Services Tax, Federal Fuel Charge, and Canada Carbon Rebate as part of its operational modernization and alignment with current priorities.
Government ReformWaive interest and penalties for businesses affected by tariffs
The Canada Revenue Agency will waive interest and penalties for businesses as a form of targeted tax relief to support those impacted by recent U.S. trade tariffs.
Economy and TradeProvide $940 million for the deferral of corporate income tax and GST/HST remittances
Defers corporate income tax and GST/HST remittances from April to June 2025, providing up to $40 billion in liquidity support for Canadian businesses.
Economy and TradeLeverage technology at the CRA to prosecute tax evasion and fix loopholes
Directs the Canada Revenue Agency to deploy advanced technological tools to better detect non-compliance, close tax loopholes, and strengthen overall enforcement against tax evasion.
Economy and TradeReform the Disability Tax Credit application process and review eligibility criteria
Commits to reforming the administrative application process for the Disability Tax Credit (DTC) and assessing the expansion of medical eligibility criteria to cover more impairments.
Social ProgramsDeliver Automatic Tax Filing for Low-Income Households and Seniors
Implements automatic tax filing systems to increase uptake of the Canada Child Benefit and GST/HST credit, beginning with low-income households and seniors.
Government Reform