Canada’s 2025 Federal Budget introduces key tax changes, including eliminating the Underused Housing Tax starting in 2025, clarifying new bare trust reporting rules, and adjusting credits such as the Home Accessibility Tax Credit. It also adds a new refundable credit for personal support workers and removes the luxury tax on boats and aircraft, aiming to simplify compliance and support targeted groups.

The Canada Revenue Agency (CRA) is implementing significant changes to the Voluntary Disclosures Program (VDP) effective October 1, 2025. The VDP is designed to encourage taxpayers to come forward and correct past errors or omissions in their tax filings, offering relief from penalties and, in some cases, interest. The new rules aim to make the program more accessible, transparent, and fair, while maintaining the integrity of the tax system.

Last week, the House gave final approval to Trump’s One Big Beautiful Bill Act. However, Congressional Republicans agreed to remove the so-called “revenge tax” provision.