ARTICLE · 11 SEPTEMBER 2026

Amendments To Indirect Tax Rules Incoming

Millar Kreklewetz

Bill C-31, Canada's Budget 2025 Implementation Act No. 2, is currently before Parliament's Finance Committee with significant amendments to indirect tax rules. The legislation proposes to double the Tax Court's informal procedure threshold for GST appeals to $100,000, clarify tax treatment for credit unions, and modify imported supply rules for financial institutions dealing with insurance policies and loans connected to Canada.

CanadaTax

Robert Kreklewetz

David West

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As a follow up to our previous report on Canada’s Budget 2025 (the “Budget”), certain indirect tax measures proposed in the Budget are now being considered by Parliament, as the Budget 2025 Implementation Act, No. 2 (“Bill C-31”) received its second reading on June 3, 2026, and is currently at the House of Commons Standing Committee on Finance for consideration.

In this report, we highlight some of the proposed amendments to Canada’s indirect tax rules contained in Bill C-31

Tax Court Informal Procedure Thresholds

The key amendment in Bill C-31 is the increase in the threshold for the Tax Court’s informal procedure for GST appeals under the Excise Tax Act (“ETA”), and which will increase the informal procedure threshold from $50,000 to $100,000. From an “access to justice” perspective, this amendment should lower litigation costs for small businesses and encourage a more efficient allocation of Tax Court resources. Unfortunately, the

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Amendments To Indirect Tax Rules Incoming

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