EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.
Recent Searches
Trending
-
Advancing Canada’s defence innovation
09 Apr 2026 -
Canadian Insurance Outlook 2026: navigating uncertainty, unlocking opportunity
13 Mar 2026 Financial services -
From bottleneck to accelerator: the strategic role of digital identity controls for industrials and energy companies
18 Feb 2026 Energy and resources
Tax Alert 2026 No. 31, 21 May 2026
Bill C‑31, Budget 2025 Implementation Act, No. 2, received first reading on 6 May 2026 and contains significant — though mostly previously announced — proposed amendments to Canada’s Global Minimum Tax Act (GMTA) and Income Tax Act. Most notably, Bill C-31 would implement the UTPR (undertaxed profits rule), with some modifications since draft legislative proposals were released for public comment on 12 August 2024, and defer its application by one year.
Bill C-31 also includes numerous amendments from previous draft legislative proposals intended to reflect aspects of the OECD/G20 Inclusive Framework on BEPS administrative guidance, address certain safe harbour measures, coordinate foreign domestic minimum top-up taxes with the Canadian foreign affiliate rules, and make technical and consequential amendments to the Canadian Pillar Two framework.
In this Tax Alert, we provide a brief overview of certain Pillar Two measures included in Bill C-31 and comments on what is not included in the bill.
Access the full content in the PDF attached below.
Read Tax Alert in full
Issue No. 31, 21 May 2026
Stay ahead of fast-moving policy developments.
Learn what’s happening now, what it means for your business and how you can adapt to shape the future with confidence. Sign up for EY Tax Alerts today.
Previous issues
CRA intends to postpone new administrative position on GST/HST treatment of trailing commissions
On 13 May 2026, the Canada Revenue Agency (CRA) verbally informed various industry groups that it intends to grant a material extension to the implementation deadline for the application of GST/HST to mutual fund trailing commissions.
Budget 2025 implementation bill no. 2 tabled in the House of Commons
On 6 May 2026, the government tabled Bill C-31, Budget 2025 Implementation Act, No. 2.
Employee ownership trusts are here to stay
The federal Spring Economic Update 2026, tabled on 28 April 2026, signals that employee ownership trusts (EOTs) are set to become a permanent fixture.
Government tables the Spring Economic Update 2026 Implementation Act
On 29 April 2026, Bill C-30, Spring Economic Update 2026 Implementation Act, received first reading in the House of Commons.
Newfoundland and Labrador Budget 2026
Newfoundland and Labrador Finance Minister Craig Pardy tabled the province’s fiscal 2026 budget on 29 April 2026.
Federal Spring Economic Update 2026
On 28 April 2026, the Minister of Finance and National Revenue, François-Philippe Champagne, tabled the federal government’s Spring Economic Update 2026, which contains several tax measures affecting individuals and corporations.
Publications and articles