Q3 2026 Tax Tips & Traps: CRA Updates for Canadian Businesses

Q3 2026 Tax Tips & Traps: What You Need To Know

Q3 2026 Tax Tips & Traps

Staying on top of CRA rule changes, court decisions, and administrative updates is part of running a business well.

Our Q3 2026 Tax Tips & Traps edition covers what changed this quarter, from a $13.25 million real estate ruling to new GST/HST treatment on mutual fund trailing commissions.

Here is what business owners, investors, and individuals should know.

What's Inside This Edition

Real Estate: Change in Use?

→ A Tax Court ruling on a $13.25 million property sale turned on the exact date a rental property converted from capital to inventory. The court's answer differed from CRA's.

Mutual Fund Trailing Commissions Now Subject to GST/HST

→ CRA is treating trailing commissions as taxable supplies, but has pushed the enforcement date to January 1, 2028.

CRA Clarifies Three Voluntary Disclosures Program Concerns

→ No increased audit risk, real savings on penalties and interest, and more clarity on what to expect before you apply.

Long Commute Doesn't Make Travel Deductible

→ A taxpayer working five hours from home lost his claim for lodging and vehicle expenses. The court called it personal travel, regardless of distance.

Commission Salesperson Denied $86,231 Deduction

→ The expense was not required by the employment contract, was not paid in the year claimed, and the court found the amount unreasonable in any case.

GIS Calculated Differently Than Income Tax, Even for the Same Payment

→ A retroactive lump sum payment received favourable tax treatment but still cost a taxpayer a year of Guaranteed Income Supplement eligibility.

RESP Holders Moving to the US Face Added Complexity

→ Grandparent-held plans, US tax on RESP income, and IRS reporting requirements are all considerations before a cross-border move.

Multiple Family Members Can Now Fund One Disability Trust

→ CRA confirmed a strategy that lets several individuals contribute to a single testamentary trust for a disabled beneficiary over time.‍

Read the Full Q3 2026 Tax Tips & Traps PDF

For the full breakdown and expert insights, download the complete PDF here.

If you have questions about anything covered in this issue or want help with your 2026 tax filings, don’t hesitate to get in touch.

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