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.

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There have been recent changes in the mechanics of how trusts function, including the Graduated Rate Estate (GRE) rules along with new rules in regard to which trusts are required to file a return every year regardless of whether or not there is income to be reported for trusts with taxation years ending after December 30, 2023. The deadline for filing those return is no later than 90 days after the trust's tax year-end. This is generally December 31. Therefore, trusts with a December 31, 2024, must file a T3 by March 31, 2025.

Taxpayers who own a residential property and rent it out must be aware that income reporting is required in most cases.  Further if the rental was for periods of less than 90 days, expenses to offset that income could be restricted.  These Short Term Rental (STR) rules are new for the 2024 tax year.  Here’s what you need to know based on recent directives from Finance Canada and the CRA, which includes a brief reprieve for some STR owners in 2024:

The federal government has introduced legislation to disallow the claiming of all expenses against rental income produced through non-compliant short-term rental ventures as of January 1, 2024. This applies to those who earn income through short-term rental platforms like Airbnb or VRBO. How can taxpayers ensure their short-term rentals become and remain compliant?  This is important because of the vast new audit powers CRA has in this regard. 

Writing off interest costs in the 2024 tax year?  Consider the implications of recent jurisprudence and the New General Anti Avoidance Rules in structuring plans to ensure interest expenses are deductible, especially if it involves a family home.   What’s important is that the object, spirit and intent of the law is followed.