| | This week's tax news from the Americas - Canada removing tariffs on certain US goods; Canadian business support measures announced
On 22 August 2025, Canada’s Prime Minister Mark Carney announced that Canada would remove retaliatory tariffs on United States goods specifically covered under the Canada-US-Mexico free trade agreement (CUSMA). This announcement followed US confirmation that Canadian exports to the United States that are CUSMA compliant will not be subject to US tariffs imposed under the International Emergency Economic Powers Act. However, Canada will continue to impose tariffs on steel products, aluminum products and motor vehicles originating in the United States.
- USTR launches USMCA review public process
On 16 September 2025, the Office of the USTR officially initiated the public process for the first six-year review of the United States-Mexico-Canada Agreement (USMCA). This public process provides a critical opportunity for stakeholders across industries to provide input on the operation, effectiveness and future direction of the USMCA, which governs nearly $1.3 trillion in annual trade among the three North American nations.
- Canada | Distributed investment plans required to request certain investor information by 15 October 2025
In Canada, a distributed investment plan (DIP), which generally includes mutual fund trusts and certain partnerships, that is a selected listed financial institution must make a written request to obtain certain information from its investors by 15 October 2025. The information provided by the investors is used to calculate the DIP's provincial attribution percentage and the DIP's Goods and Services Tax/Harmonized Sales Tax/Quebec Sales Tax net tax liability/refund. If a DIP does not request this information by 15 October 2025, certain investors may be deemed to be residents of the highest-rate province (i.e., 15%), resulting in higher tax liabilities or lower refunds for the DIP.
- Canadian Department of Finance updates proposals to modify enhanced trust reporting requirements
As part of the release of several packages of draft legislative proposals, the Department of Finance recently confirmed and rereleased the 12 August 2024 proposed amendments for enhanced trust reporting requirements (original amendments), but with certain modifications and clarifications made (updated amendments). This Tax Alert provides a brief overview of the updated amendments to the enhanced trust reporting requirements. As of the time of writing, none of the proposed amendments have been enacted as law.
- OECD publishes 'Revised BEPS Action 5 Transparency Framework on Tax Rulings'
On 8 September 2025, the Organisation for Economic Co-operation and Development (OECD) released the report, "Revised BEPS Action 5 Transparency Framework on Tax Rulings," on the spontaneous exchange of information on tax rulings. The report reflects the Inclusive Framework's completion of an effectiveness review as part of its ongoing peer review of the Action 5 minimum standard. The changes to which the Inclusive Framework agreed are intended to enhance the effectiveness of the transparency framework, including modifications to the scope of rulings covered; revised terms of reference and an updated assessment methodology for peer reviews; and a revised Exchange on Tax Rulings (ETR) XML Schema and User Guide.
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| | About Americas Tax Roundup Published by NTD's Tax Technical Knowledge Services Group, Washington, D.C.
Jennifer Mannetta, writer and editor Distributed weekly to all Americas Tax personnel. | |
