Confirmed:  The CCR for Small Business is Tax Free

Ottawa has confirmed that the CCR for Small Business received by eligible Canadian-controlled private corporations (CCPCs) will be tax free for the 2019-20 to 2023-24 fuel charge years, as will the final payment for the 2024-2025 fuel charge year.  Draft legislation was released on June 30, 2025 with this announcement; and will be introduced for law making in Parliament this Fall.   Some of the more significant details are discussed below.

With all the challenges Canadians are facing making dollars stretch these days, there is some good news on the horizon: Tax Season 2024!   It’s going to be full of a multitude of tax changes that can lead to a potential refund, increased tax free credits, especially if RRSP season is purposeful in reducing family net income.  But for some, a balance due to CRA will come with high interest charges if it can’t be paid by the April 30 filing deadline.  

January 1 is the introduction date for the CPP2.  A new tier of premium increases begins for higher income earners.  It’s 4% more on contributory earnings between $65,000 and $73,200 – for a maximum additional premium of $188.  That’s on top of a $3754.45 premium (5.95%) on the first $65,000 of contributory earnings.  The self-employed pay both the employer and employee portions to a maximum of $8111.   Knowledge Bureau Report asked its readers:  in your opinion, will the CPP2 premium increase starting January 1, 2024 cause financial hardship to employers and employees? Overwhelmingly the answer was yes: 88%.  Here were some of the reasons why:

The Underused Housing Tax (UHT), was introduced as a tax on vacant homes owned by non-residents in the April 19, 2021 federal budget. According a recent interview with Investment Executive, the tax has already raised 30 million dollars as of mid December 2023, but on closer look, less than 2% of the 426,200 returns assessment had taxes owing, and the amount collected has fallen short of goals.  Is it worth the complexity and the cost of compliance to keep it in place? That’s our January poll question. Here’s some background:

Coming up virtually on January 17, in person in Toronto on January 24 and in Calgary on January 26, registration for Knowledge Bureau’s 2024 Comprehensive T1 Tax Update for professionals is now open.  Check out the detailed agenda online! The program includes not only the presentations for the day but access to the accompanying online course, CE quizzes, accreditation and the new 430-page Knowledge Journal Line-by-Line Desktop Reference, as well as lunch and refreshments at the in-person events.  In addition, every student retains a subscription to EverGreen Explanatory Notes and Knowledge Bureau Report for the tax season and until May 6.   It’s your complete 2024 Tax Season Toolkit!

Did you know that Knowledge Bureau is a private, educational institution certified by Employment and Social Development Canada (ESDC) to provide courses that develop or improve skills for those working in the tax, bookkeeping, accounting, and financial services industries? What this also means is that Knowledge Bureau students who have paid 2023 tuition fees in excess of $100 qualify for the tuition fee amount, and the T2202 tax slips to claim this are now available in your Virtual Campus. Here’s how to claim them:

We wish to express our sincere gratitude to you for the privilege of being a part of your professional life over the past year.