Some of 2025's biggest tax stories came from the previous year's federal budget and the decision to abandon a proposed increase to the capital gains inclusion rate.Justin Tang/The Canadian Press
Canadians navigated much tax uncertainty in 2025: proposed changes to the capital gains tax regime that Ottawa would at first defer and later drop altogether; tax-hike threats from the U.S. over global taxes it didn’t like; and a decision by the federal government to delay the tabling of this year’s federal budget (and all future budgets) to the fall.
Here are five stories I wrote in 2025 that looked at contentious tax issues, a court decision on an uncertain estate distribution, and the question of whether to commute a company pension plan.
In the 2024 federal budget, Justin Trudeau’s Liberal government called its proposal to hike the capital gains inclusion rate “an idea that everyone who cares about fairness can support.” Less than a year later, Prime Minister Mark Carney pulled the plug on the hike, saying in a release that cancelling it would “incentivize builders, innovators and entrepreneurs.” In March, I asked advisors about clients who chose to sell appreciated assets earlier than they would have done otherwise, looking to get ahead of a big tax increase that the feds ultimately ditched.
With Trump’s budget bill looming, here’s how U.S. foreign withholding tax works
The U.S. One Big Beautiful Bill passed by the House of Representatives in May contained one big tax threat for Canadians with U.S investments – a massive increase to U.S. foreign withholding tax. When Canada and other G7 nations ultimately agreed to exclude the U.S. from the scope of a global minimum tax, the U.S. dropped its “revenge tax” from the version of the bill that was eventually passed into law. In June, I examined how U.S. foreign withholding tax affects Canadians who hold U.S. investments, even without the proposed tax hike.
A woman outlived her beneficiary and executors. Here’s how an Ontario court ruled on her estate
Advisors know it’s crucial that clients update their wills regularly, particularly when major life events – such as a death – occur. In October, I wrote about an Ontario court decision involving an executor who sought advice from the court as to who should receive an estate after the deceased had outlived almost everyone she named in her will.
The CRA’s revised disclosures program will encourage more offside taxpayers to come forward
The Canada Revenue Agency offers taxpayers a deal – reach out to us proactively about unpaid taxes under the voluntary disclosures program and we can offer you full or partial relief from interest and penalties. However, some taxpayers in recent years found the VDP rules so restrictive, and the relief available so relatively modest, they decided they were better off just remaining in the shadows. In November, I reported on the revised, more accessible VDP that aims to incentivize more delinquent taxpayers to tell all.
What to consider before commuting an employer pension plan
One of the biggest financial decisions clients will ever make is whether to commute a company pension plan. If they’ve been with their company for many years, the commuted value of a pension can be significant. On the other hand, they may prefer the security of receiving a monthly pension payment for the rest of their lives. From Globe Advisor’s Pensions Unpacked series, this article covers the key considerations when deciding whether to commute a pension plan.