November Timely Topics: highlights from Canada’s 2025 federal budget, the upcoming CUSMA review process, the risks of informal governance in private companies, and more
Timely Topics with McCarthy Tétrault curates our latest insights to help you stay informed of developments that can affect your business. Please contact us if you have any questions on the topics below.
Here are this month’s trending topics:
Tax
2025 Canadian Federal Budget Analysis
Canada’s 2025 federal budget, Building Canada Strong, tabled on November 4, 2025, prioritizes competitiveness, affordability, and security through targeted tax measures rather than broad-based cuts. Key initiatives include accelerated capital cost deductions, modernization of transfer pricing rules, harmonization of qualified investment concepts for deferred plans, and extensions to major clean economy investment tax credits.
Our Tax team is reviewing the 2025 federal budget’s business tax measures and their implications for corporate planning, compliance, and investment strategy. Contact Raj Juneja or Brett Anderson to discuss how Budget 2025 may affect your organization.
International Trade & Investment
Navigating the CUSMA Review Process: A Guide for Canadian Stakeholders
As Canada prepares for the first formal review of the Canada-United States-Mexico Agreement (CUSMA) in July 2026, the federal government has launched public consultations to shape its negotiation priorities. With rising trade tensions, renewed tariffs, and emerging concerns over Chinese transshipment and automotive rules of origin, this process could reshape key elements of North American trade.
Our International Trade and Investment Law Group has deep experience advising businesses on cross-border trade and regulatory strategy. Contact John Boscariol, Robert Glasgow, or Ljiljana Stanic to discuss how we can help your organization respond to these developments with confidence.
Litigation and Dispute Resolution
The Risks of Informal Governance in Private Companies: Lessons From a B.C. Court Battle
In a verdict that is a cautionary tale for private-company governance, the Supreme Court of British Columbia rejected a co-founder’s claim rooted in secret bilateral agreements, underscoring that informal understandings, even when documented, do not substitute for formal, transparent governance mechanisms.
Our Litigation and Dispute Resolution Group can help you resolve complex disputes efficiently and effectively. Contact Adam Goldenberg to discuss strategies that protect your business and drive successful outcomes.
Tax
Significant Positive Changes to Reinvigorate the Voluntary Disclosures Program for Income Tax and GST/HST
The Canada Revenue Agency’s updated Voluntary Disclosures Program (VDP), effective October 1, 2025, broadens eligibility and increases penalty and interest relief for taxpayers, including large corporations. Key changes ease the “voluntary” requirement and introduce new “prompted” and “unprompted” disclosure tracks, making it easier to correct past tax errors and omissions. Taxpayers should consider timing their disclosures to benefit from the new, more favourable rules.
Our Tax team is closely monitoring the CRA’s expanded Voluntary Disclosures Program and its implications for compliance strategy, risk mitigation, and corporate reporting. Contact Raj Juneja or Brett Anderson to discuss how your business can benefit from the revised program.
International Arbitration
“Final” Means Final: Foreclosing Appeals From Arbitration Decisions May Be Easier Than You Think
The Ontario Superior Court underscores that arbitration awards labelled “final and binding” typically bar appeals on legal questions, and even when appeals are allowed, courts require a clearly extricable legal issue to grant leave. This case highlights the importance of careful drafting of arbitration clauses and the high threshold for appellate review.
Our International Arbitration team regularly advises on drafting and enforcing arbitration agreements, including managing risks related to appeals. Contact Adam Goldenberg to discuss how this decision may impact your dispute resolution strategy or arbitration clauses.
This newsletter provides general information only. It does not provide legal advice. Please seek legal counsel if you need help addressing any issue covered in this newsletter.
Tell us what you think! Do you have feedback or topics you’d like for us to explore? Let us know at marcomms@mccarthy.ca
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