Scope: United States
Status requires verification
Notice 2025-62 – Penalty Relief for Tax Year 2025 for Information Reporting on Tips and Overtime under the One, Big, Beautiful Bill
For tax year 2025 only, the IRS and Treasury are providing **penalty relief** to employers or other payors for failures in reporting requirements under the One, Big, Beautiful Bill (OBBB) regarding cash tips and qualified overtime compensation. Specifically, employers will not be penalized under § 6721 or § 6722 for failing to separately account for cash tips or report payee occupations, or failing to separately report qualified overtime compensation, **so long as** they file a complete and correct return or statement overall. This relief acknowledges that many payors need time to build systems, gather required information, and update reporting forms.
Editorial impact label: Medium
- Published
- Not recorded
- Policy event
- Not recorded
- Effective
- Nov 5, 2025
- Verification
- Not recorded
Open cited source
Scope: Canada
Status requires verification
Luxury tax not payable on subject aircraft and subject vessels
As announced in Budget 2025, effective November 5, 2025, subject aircraft and subject vessels are no longer subject to Canada's luxury tax. The luxury tax will still apply to subject vehicles priced over $100,000. This reduces tax burden and compliance for aviation and marine sectors.
Editorial impact label: Low
- Published
- Not recorded
- Policy event
- Not recorded
- Effective
- Nov 5, 2025
- Verification
- Not recorded
Open cited source
Scope: Global
Status requires verification
Luxury tax no longer payable on subject aircraft and subject vessels in Canada
Under the Select Luxury Items Tax Act, the luxury tax imposed on subject aircraft and subject vessels (above certain thresholds) is no longer payable effective November 5, 2025. These legislative changes were included in Bill C-15, Budget 2025 Implementation Act, No. 1, which received Royal Assent March 26, 2026.
Editorial impact label: Low
- Published
- Not recorded
- Policy event
- Not recorded
- Effective
- Nov 5, 2025
- Verification
- Not recorded
Open cited source
Scope: Canada
Status requires verification
LTN5 Luxury tax not payable on subject aircraft and subject vessels
Government of Canada Budget 2025 included a measure under the Select Luxury Items Tax Act that, effective November 5, 2025, luxury tax will no longer be payable on subject aircraft and subject vessels. Registrants will no longer be required to register in respect of subject aircraft and vessels, and filing, reporting, exemption certificates, special import certificates, and registration obligations for these items will cease accordingly (with transitional rules and record-keeping obligations imposed, and automatic cancellation of registrations by February 1, 2028).
Editorial impact label: High
- Published
- Not recorded
- Policy event
- Not recorded
- Effective
- Nov 5, 2025
- Verification
- Not recorded
Open cited source
Scope: United States
Status requires verification
Treasury, IRS provide transition penalty relief for tax year 2025 for information reporting on tips and overtime under the One, Big, Beautiful Bill
Notice 2025-62 provides relief to employers/payors from penalties for tax year 2025 for new information reporting requirements around cash tips, the occupation of tip recipients, and qualified overtime compensation under OBBB. The relief applies if returns/statements are otherwise complete and correct; updated boxes/forms will not be issued for 2025.
Editorial impact label: Medium
- Published
- Not recorded
- Policy event
- Not recorded
- Effective
- Nov 5, 2025
- Verification
- Not recorded
Open cited source
Scope: Canada
Status requires verification
Luxury tax no longer payable on subject aircraft and subject vessels
Under Budget 2025, as of November 5, 2025, the Select Luxury Items Tax Act will no longer apply the luxury tax on designated aircraft and vessels, removing the tax burden from purchasers in these categories.
Editorial impact label: High
- Published
- Not recorded
- Policy event
- Not recorded
- Effective
- Nov 5, 2025
- Verification
- Not recorded
Open cited source
Scope: Canada
Status requires verification
Canada’s Bill C-15 enacts new transfer pricing rules and other Budget 2025 tax measures
Bill C-15, which received Royal Assent on March 26, 2026, implements new transfer pricing adjustment rules and documentation requirements for tax years beginning after November 4, 2025. It also includes repeal of the Digital Services Tax Act, enhancements to SR&ED credits, anti-deferral (FABI/FAPI) reforms, accelerated capital cost allowance, and elimination of certain taxes like luxury tax and underused housing tax.
Editorial impact label: High
- Published
- Not recorded
- Policy event
- Not recorded
- Effective
- Nov 5, 2025
- Verification
- Not recorded
Open cited source
Scope: Canada
Status requires verification
LUXURY TAX NOT PAYABLE ON SUBJECT AIRCRAFT AND SUBJECT VESSELS
Effective November 5, 2025, under amendments in Bill C-15 (Budget 2025 Implementation Act, No. 1, which received royal assent March 26, 2026), the federal luxury tax in Canada is **no longer payable** on subject aircraft and subject vessels. This removes tax liability for high-value aircraft and vessels under the Select Luxury Items Tax Act above specified price thresholds (e.g. above $100,000 for aircraft).
Editorial impact label: Medium
- Published
- Not recorded
- Policy event
- Not recorded
- Effective
- Nov 5, 2025
- Verification
- Not recorded
Open cited source
Scope: Canada
Status requires verification
Transfer pricing
Bill C-15, Budget 2025 Implementation Act No. 1 modernizes Canada’s transfer pricing rules under section 247 of the Income Tax Act: replacing the two-part system with a single operative adjustment rule; reducing the required timeframe for providing contemporaneous documentation from three months to 30 days upon request; raising the threshold for penalty consideration to the lesser of $10 million or 10% of gross revenue; and simplifying documentation requirements under certain prescribed conditions.
Editorial impact label: High
- Published
- Not recorded
- Policy event
- Not recorded
- Effective
- Nov 4, 2025
- Verification
- Not recorded
Open cited source
Scope: Canada
Status requires verification
Government releases Budget 2025: Canada Strong
Budget 2025 unveils Canada’s plan for generational investments: $60 billion in savings and revenues over five years, strategic spending on housing, infrastructure, defence, and competitiveness, moving federal budget cycle to fall, adopting a new Capital Budgeting Framework to distinguish between operating and capital spending.
Editorial impact label: High
- Published
- Not recorded
- Policy event
- Not recorded
- Effective
- Nov 4, 2025
- Verification
- Not recorded
Open cited source
Scope: Canada
Proposed
Budget 2025 eliminates the Underused Housing Tax for 2025 and subsequent calendar years
Budget 2025 proposes to eliminate the Underused Housing Tax (UHT) as of the 2025 calendar year. No UHT will be payable beginning 2025, and no UHT returns required for those years and beyond. Obligations for 2022-2024 remain in force. This reduces compliance burdens and costs for non-resident, non-Canadian property owners, and domestic owners affected.
Editorial impact label: Medium
- Published
- Not recorded
- Policy event
- Not recorded
- Effective
- Nov 4, 2025
- Verification
- Not recorded
Open cited source
Scope: Canada
Status requires verification
New Transfer Pricing, Pillar Two & FAPI/FABI Rules under Bill C-15 and Bill C-31
Canada has enacted new transfer pricing adjustment and documentation rules, enhanced foreign affiliate income rules (including FAPI), and introduced an elective Foreign Accrual Business Income (FABI) regime. The business income tax measures also include new Pillar Two global minimum tax rules, dividend suspension through tiered corporate structures, and limits on tax deferral. These apply to tax years beginning **after November 4, 2025**, with further measures effective for fiscal years starting December 31, 2025 and afterward. ## Implications:
- Multinational enterprises must analyze cross-border, non-arm’s-length transactions by economic substance, not merely contractual terms.
- Corporations with foreign affiliates will need to determine whether FAPI or FABI rules apply and adjust reporting and tax estimates accordingly.
- Dividend flows among affiliated entities must be scrutinized to avoid triggering withholding or suspension of benefits.
- Compliance, documentation, and audit risk increase—professional assistance advisable.
Editorial impact label: High
- Published
- Not recorded
- Policy event
- Not recorded
- Effective
- Nov 4, 2025
- Verification
- Not recorded
Open cited source
Scope: Global
Proposed
Notice of Ways and Means Motion to amend the Income Tax Act … Budget tabled in Parliament on November 4, 2025
Canada’s Department of Finance in November 2025 released a Notice of Ways and Means Motion proposing amendments to multiple federal tax statutes including the Income Tax Act, Excise Tax Act, Underused Housing Tax Act, and Select Luxury Items Tax Act. These amendments are based on the Budget tabled November 4, 2025 and aim to implement several tax policy changes, with draft legislative text released for public comment including changes to income tax rules, luxury item taxation, housing taxes and excise taxes. The implications include increased tax obligations for certain asset classes, stronger excise duty enforcement, and updated housing levies. Stakeholders should review proposed changes closely, prepare submissions during the consultation window, and anticipate future compliance obligations when these are enacted.
Editorial impact label: High
- Published
- Not recorded
- Policy event
- Not recorded
- Effective
- Nov 4, 2025
- Verification
- Not recorded
Open cited source
Scope: Global
Proposed
Canada Budget 2025 proposal: immediate expensing for eligible manufacturing or processing buildings
Canada proposes allowing 100% first-year expensing for eligible manufacturing or processing buildings acquired November 4, 2025, first used before 2030; reduced rates apply thereafter until 2033. Intended to accelerate investment in industrial infrastructure, benefiting entities making real property capital investments.
Editorial impact label: High
- Published
- Not recorded
- Policy event
- Not recorded
- Effective
- Nov 4, 2025
- Verification
- Not recorded
Open cited source
Scope: Canada
Proposed
Budget 2025 proposes automatic tax return filing for eligible individuals with lower incomes
Budget 2025 proposes to amend the Income Tax Act to allow the CRA to file tax returns on behalf of eligible individuals whose taxable income is below the basic personal amount (etc.), using information CRA has, starting as soon as the 2025 taxation year, with implementation effective by 2026/27 and scaling to reach up to 5.5 million people by 2028. This will help ensure these individuals receive federal benefits they are entitled to, even if they do not file returns themselves. Requires review or opt-out. Legislated upon royal assent. Impact on access to benefits and compliance burden for low-income individuals.
Editorial impact label: High
- Published
- Not recorded
- Policy event
- Not recorded
- Effective
- Nov 4, 2025
- Verification
- Not recorded
Open cited source
Scope: Canada
Status requires verification
Accelerated Capital Cost Allowance Rates for Low-Carbon LNG Facilities
The Spring Economic Update 2026 introduces reinstated accelerated CCA for eligible low-carbon LNG equipment and related buildings. Class 47 liquefaction equipment qualifies for a **50 %** accelerated CCA rate, and Class 1 non-residential buildings qualify at **10 %**, provided the facility meets an emissions intensity threshold of 0.20 tCO₂e per tonne of LNG produced. To claim, the facility must be certified by the Minister of Energy and Natural Resources via a third-party engineering report. The measure applies to eligible assets acquired on or after November 4, 2025 and before the end of 2034. It helps energy projects accelerate cost recovery and improve cash flow.
Editorial impact label: High
- Published
- Not recorded
- Policy event
- Not recorded
- Effective
- Nov 4, 2025
- Verification
- Not recorded
Open cited source
Scope: Canada
Proposed
Ending the Luxury Tax on Aircraft and Vessels
Budget 2025 proposes to amend the Select Luxury Items Tax Act (SLITA) to end the luxury tax on subject aircraft and subject vessels. All instances of the tax would cease to be payable following Budget Day on sales, importation, and improvements; final returns and registrations will be handled through transitional provisions. This is a proposed legislative change with high value for buyers in those categories.
Editorial impact label: Medium
- Published
- Not recorded
- Policy event
- Not recorded
- Effective
- Nov 4, 2025
- Verification
- Not recorded
Open cited source
Scope: Canada
Proposed
Immediate Expensing for Manufacturing and Processing Buildings
Budget 2025 proposes a temporary measure allowing eligible manufacturing and processing buildings to be fully expensed (100% deduction) in the first taxation year they are used for manufacturing or processing, provided they are acquired on or after November 4, 2025 and first put to qualifying use before 2030. Phase-outs to 75% (for first use in 2030-31) and 55% (for first use in 2032-33) are included. The measure aims to encourage investment, improve capital cost allowance clarity, and promote clean growth. Technical amendments and more detailed rules are part of draft legislation released for consultation.
Editorial impact label: High
- Published
- Not recorded
- Policy event
- Not recorded
- Effective
- Nov 4, 2025
- Verification
- Not recorded
Open cited source
Scope: Canada
Proposed
Budget 2025 introduces immediate expensing for eligible manufacturing and processing buildings
Budget 2025 proposes that businesses acquiring eligible buildings used at least 90% for manufacturing or processing goods (newly acquired after Budget Day) can immediately expense the full cost in the year the asset is first used, instead of normal declining capital cost allowance, provided use and timing conditions are met. Effective for property acquired after Budget Day and first used before 2030; partial deductions thereafter for 2030-31 and 2032-33. Significant benefit for capital investment cash flows.
Editorial impact label: High
- Published
- Not recorded
- Policy event
- Not recorded
- Effective
- Nov 4, 2025
- Verification
- Not recorded
Open cited source
Scope: Canada
Status requires verification
Businesses: Go online to register for a Business Number or CRA Program Account
Starting November 3, 2025, registrations for new business number (BN) or Canada Revenue Agency (CRA) program accounts must be done online via Business Registration Online (BRO); phone-based registrations will no longer be accepted. This aims to make registrations faster, more secure, and available 21 hours/day.
Editorial impact label: High
- Published
- Not recorded
- Policy event
- Not recorded
- Effective
- Nov 3, 2025
- Verification
- Not recorded
Open cited source