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.

In our last article on this subject, current tax rules on ESOPs were covered.  In the absence of proposed legislation that enables the federal government’s proposed increase in the Capital Gains Inclusion Rate (CGIR), recall that it is anticipated that if the individual’s total gains for the year exceed $250,000, two-thirds of gains over the $250,000 threshold would be included in income if they were generated after June 24, 2024.  Here’s a synopsis of the effect of this change on ESOPs to initiate discussions with business owners, key employees and tax advisors:

Knowledge Bureau is delighted to announce its categories of awards to be announced at the Acuity Conference for Distinguished Advisors (DAC) November 10 – 12 in Montreal.  The star-studded ceremony, being held at the exclusive St. James Club, will kick off the three day educational conference – Canada’s only multi-disciplinary conference, featuring 16 thought leaders who will focus on the theme,  Safe Havens: Secure Financial Futures & Wealth Potential.   To be announced at the end of June, the winners will be honored in the following categories:

The MFA-P™ has specialized professional credentials to enable high-value planning for individual or family legacies. In this dynamic program, learn to have highly satisfying conversations with clients sooner in your relationship, address their big fears: that gifts will not be used wisely or according to personal passions and wishes. Then, provide a consistent process for giving solutions with investments that are tax-efficient, during lifetime and as part of a personal or family legacy. Become a certified professional in the evolving field of philanthropy. Build trusting relationships with your clients and help them make a difference in the world through charitable giving as an MFA-P and save 15% until June 30 with code MFAP15.

Check out the recording of the live Meeting of the Minds session on June 5 featuring practicing members of the Society of Real Wealth Managers™ and learn more about how their collaborative family office approach helps clients make sound financial decisions. Panelist Joanne Thomas moved her business to another province, and used the RWM™ model and thinking outside of the box to connect with like-minded professionals in other areas of specialization to improve the value of services that are provided to her clients.  Register now for the Meeting of the Minds to access the event recording and hear Joanne tell her story and be sure to enrol in the Designation Program at a special tuition rate, only until June 30.

As a Distinguished Advisor, you know the importance of learning best practices and staying informed about the latest developments in the financial services industry.  Together, Canada's top publications for financial advisors - the 2024 Acuity Conference for Distinguished Advisors returning media sponsors -  will ensure you remain at the top of your game. Knowledge Bureau is pleased to welcome back Advisor.ca and Investment Executive as our media sponsors for Acuity 2024 in Montreal November 10-12. Learn more about them below:

Millions of Canadian investors and their advisors must prepare themselves for lower dividend distributions and those once or twice-in-a-lifetime financial events as a result of the new capital gains inclusion rate of 66 2/3 percent on gains over $250,000.  Larry Frostiak, FCPA, FCA, CFP, TEP, RWM™, FDFS™,  founding partner of Frostiak & Leslie Chartered Professional Accountants Inc.  will discuss the broad implications from a Year End Planning perspective at the Acuity Conference for Distinguished Advisors in Montreal November 10-12.  But in the meantime, the June 25 deadline fast approaches and critical conversations must take place, for the reasons outlined below: