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ARTICLE · 25 NOVEMBER 2025

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Torys On Budget 2025: Tax Highlights

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On November 4, 2025 (Budget Day), Minister of Finance and National Revenue François-Philippe Champagne tabled his first budget in the House of Commons (Budget 2025).

CanadaTax
Torys Tax Practice
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On November 4, 2025 (Budget Day), Minister of Finance and National Revenue François-Philippe Champagne tabled his first budget in the House of Commons (Budget 2025). The commentary in this bulletin focuses on measures in Budget 2025 to amend the Income Tax Act (Canada) (the Tax Act).

What you need to know

  • Transfer pricing. Budget 2025 proposes to replace the existing transfer pricing rules with a new framework that, among other things, alters the current recharacterization rule and incorporates the Organisation for Economic Co-operation and Development's (OECD) Transfer Pricing Guidelines.
  • Qualified investments for registered plans. Budget 2025 proposes to expand the types of investments that registered plans can hold by replacing the existing rules with two new categories of "Qualified Investments". These new rules are expected to provide registered plans with better access to pooled fund investments.

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