1. CRA Update: $100 Penalty for Not Paying Electronically Over $10K

Under Bill C-47, it requires certain payments and remittances over $10,000 to the CRA to be made electronically, unless it's unreasonable for the payer to do so. A $100 penalty will be applied per failure.

What counts as electronic:

• Payments through banks, credit unions, online banking, CRA’s My Payment, CRA portals, or approved third-party services.

Note:

CRA has not yet begun enforcing this penalty, but advance notice will be given before enforcement begins.

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2. Small Business Tax Update: Canada Carbon Rebates Now Tax-Free

The Government of Canada has confirmed that Canada Carbon Rebates for Small Businesses will be completely tax-free. CRA will allow amended corporate tax returns for previously taxed rebates once the legislation is approved in the fall.

Eligibility Deadlines:

• Businesses that filed 2023 returns after July 15, 2024, and by December 31, 2024, remain eligible.

• For the 2024–25 year, file 2024 returns by July 15, 2025, to qualify.

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3. New: Canada Disability Benefit (CDB) Launching July 2025

The Canada Disability Benefit is a new monthly support for working-age persons with disabilities who have low income. Payments begin in July 2025.

Benefit Details:

• Maximum: $2,400/year

  ($200/month) for the July 2025–June 2026 period

• Income-based reductions start at:

  $23,000 (single)
  $32,500 (couples)

• Reduction rate:

  20% (single or one eligible in a couple)
  10% (both eligible in a couple)

• Exemption:

  First $10,000 (or $14,000 for couples) of working income is not counted

Eligibility Criteria:

• Aged 18–64

• Resident of Canada (for tax purposes)

• Valid Disability Tax Credit certificate

• Filed 2024 tax return (partner must also file, with some exceptions)

• Must be a Canadian citizen, permanent resident, protected person, registered under the Indian Act, or eligible temporary resident

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4. Changes to EFILE Authorization for Individuals — Effective July 15, 2025

Starting July 15, 2025, the Authorize a Representative service in EFILE software will no longer be available for individual clients.

How Individuals can authorize us by:

• Using CRA’s My Account to add or confirm your authorization request, or

• Provide previously assessed tax information for the representative to submit the request in Represent a Client.

If you do not have a CRA My Account yet, it is recommended to register now.

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5. Mandatory T2 E-Filing for Corporations – Effective for Tax Years Starting After 2023

Starting with tax years that begin after 2023, all corporations must file their T2 corporate income tax returns electronically, unless specifically exempt. A $1,000 penalty applies for non-compliance.

Exemptions:

• Insurance corporations

• Non-resident corporations

• Corporations reporting in functional currency

• Corporations exempt under section 149 of the Income Tax Act (e.g., non-profits, registered charities, municipalities, etc.)

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Reference

1. https://www.linkedin.com/posts/ryan-minor-296312_payments-to-the-cra-canadaca-activity-7336023791027855360-qjvQ/

2. https://www.canada.ca/en/department-finance/news/2025/06/government-confirms-non-taxability-of-canada-carbon-rebates-for-small-businesses.html

3. https://www.canada.ca/en/services/benefits/disability/canada-disability-benefit/amount.html#h2.3

4. https://www.canada.ca/en/revenue-agency/services/e-services/digital-services-businesses/efile-electronic-filers/efile-news-program-updates.html

5. https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/corporations/corporation-income-tax-return/completing-your-corporation-income-tax-t2-return.html