Canada’s Parliament fast‑tracked legislation to boost the GST credit over six years at a cost of $12.4 billion, targeting low‑ and moderate‑income households. The credit will rise 50 % in 2024 and then increase by 25 % each year from July 2025, with a family of four eligible for up to $1,890 in 2026. The editorial critiques the lack of funding plans and the long‑term impact on the deficit.
The legislation will cost $12.4 billion over six years.
Individuals earning less than about $56,000 and families of four earning less than about $67,000 in 2024.
Starting July 2025 for five fiscal years.
Up to $1,890.
Up to $950.
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Canadian Accountant · 7 days ago
This commentary highlights five significant Canadian GST/HST court decisions from 2025, covering topics from tobacco sales to insurance, medical services, optional term extensions, and Airbnb-listed condo sales. The rulings clarify exemption status, input tax credit eligibility, and the treatment of new supplies, providing guidance for tax planning and compliance in 2026.
The Globe and Mail · 9 days ago
Canada Revenue Agency has reversed its 35‑year position, treating mutual fund trailer commissions as subject to GST/HST. The change will take effect on July 1, 2026, requiring dealers to collect and remit the tax, while managers can recover it as input tax credits. Industry groups argue the implementation deadline is unrealistic and the change adds costs without revenue benefits.
The Star · 9 days ago
The article discusses Canada’s new Canada Groceries and Essentials Benefit, a top‑up to the GST credit announced by Prime Minister Mark Carney on January 26, 2026. The benefit totals $11.7 billion over six years, covering 12 million people, and recipients can spend the money on any goods or services. The benefit does not affect grocery GST, which remains exempt except for snacks.
VatCalc · 9 days ago
Canada has increased the maximum GST credit from $700 to $900 to help low‑income families cope with high food inflation. A family of four could receive up to $1,890 this year and about $1,400 annually for the next four years. Eligibility is based on filing a tax return, and the change comes amid a 6.2% food inflation rate in December 2025.
Advisor · 15 days ago
The Canada Revenue Agency has reversed its long‑standing position, declaring that trailing commissions paid by fund managers to dealers are taxable under GST/HST, effective July 1. Dealers and advisors may need to register for GST/HST if their taxable revenues exceed $30,000 over four consecutive quarters, and will have to adjust accounting systems to collect and remit the tax. The CRA will publish a formal technical interpretation in the coming weeks, clarifying the taxable status of trailing commissions and confirming that upfront commissions remain exempt.
KPMG Canada · 28 days ago
KPMG Canada outlines new GST/HST and QST obligations for employers and pension plans. Employers offering registered pension plans must remit by January 31, 2026, while pension entities and master pension entities must file annual returns by June 30, 2026. The guidance also advises reviewing SLFI status and claiming eligible rebates.
