Skip to content

The main changes C-31 would make, in plain reading order.

Back to bills
C-31 At report stage in the House of Commons House Government Bill

A second Act to implement certain provisions of the budget tabled in Parliament on November 4, 2025

Short title: Budget 2025 Implementation Act, No. 2

Sponsor: François-Philippe Champagne, Minister of Finance and National Revenue (Saint-Maurice—Champlain)

Proposed changes

Part 1 implements certain measures in respect of the Income Tax Act and the Income Tax Regulations by (a) providing temporary immediate expensing for eligible manufacturing or processing buildings; (b) delivering automatic federal benefits for lower-income individuals; (c) expanding the anti-avoidance rule for direct trust to-trust transfers to include indirect transfers of trust property to other trusts; (d) limiting the deferral of tax on investment income resulting from the use of tiered corporate structures with mismatched year ends; (e) clarifying the expenses that qualify as Canadian exploration expenses; (f) implementing the Crypto-Asset Reporting Framework; (g) removing bankrupt corporations, trusts and partnerships from the exception to the debt forgiveness rules…

Part 2 amends the Global Minimum Tax Act to, among other things, implement the UTPR that subjects the Canadian constituent entities of certain MNE groups to top-up tax in respect of the low-taxed profits of constituent entities of those MNE groups not already subject to an IIR or qualified domestic minimum top-up tax, implement certain aspects of the administrative guidance in respect of the GloBE Model Rules approved by the Inclusive Framework and published by the OECD and implement a number of technical amendments to correct mistakes or inconsistencies and to better align that Act with its intended policy objectives. This Part also makes amendments to the Access to Information Act , the Income Tax Conventions Interpretation Act and the Tax Court of Canada Act .

Part 3 amends the Excise Tax Act , the Excise Act , the Excise Act, 2001 and other related texts to implement various measures.

Division 1 of Part 3 implements certain measures in respect of the Excise Tax Act and related texts by (a) clarifying the tax treatment of federally regulated credit unions for Goods and Services Tax/Harmonized Sales Tax (GST/HST) purposes; (b) extending the application of the special GST/HST rules for certain investment plans to first home savings accounts; (c) clarifying the application of the imported supply rules to financial institutions in respect of insurance policies or loans relating to persons resident in, or property located in, Canada; (d) clarifying the GST/HST treatment of certain services supplied by the Canadian Payments Association or any of its members as a consequence of a recent amendment to the Canadian Payments Act…

Division 2 of Part 3 implements certain measures in respect of the Excise Act , the Excise Act, 2001 and other related texts by (a) making technical corrections in respect of the computation of the additional excise duty on cigars and the computation of negative amounts generated by statutory formulas; (b) clarifying the tax treatment of certain cannabis and vaping products that are unaccounted for or that are taken for use; (c) implementing a new limit in respect of packaged raw leaf tobacco for importation for personal use and making consequential amendments to ensure the proper enforcement of the new limit; (d) allowing the Canada Revenue Agency to consider and grant relief to brewers in certain circumstances; (e) extending the maximum validity period for certain licences from two years to three years…

This is shortened to the first five points. The bill itself covers more.

The path to law

Every bill has to clear each step, in both chambers. Tap a step's name to learn what it means.

  1. · House of Commons

    Completed. May 6, 2026

  2. · House of Commons

    Completed. June 3, 2026

  3. · House of Commons Next up

    Current step.

  4. · House of Commons

    Not reached yet. Not reached yet

  5. · Senate

    Not reached yet. Not reached yet

  6. · Senate

    Not reached yet. Not reached yet

  7. · Senate

    Not reached yet. Not reached yet

  8. · Senate

    Not reached yet. Not reached yet

  9. · Governor General

    Not reached yet. Not reached yet

Committee study

After second reading, a examines the bill clause by clause.

What MPs said

The most recent recorded speeches on this bill. Links go to the official transcript of that sitting.

Full debates and votes on OpenParliament.ca (an independent site)

Your note

Saved on this device only. Star the bill to see your note on its card.