Tax update, September 2026: CRA record demands and BC's PST pause

Each month we send our clients a short update on CRA and tax news. This is the September 2026 issue, lightly edited for the web. Get it by email.

Received a CRA notice?

Send us the complete notice before you reply. We can review its scope, protect the deadline and help prepare your response.

Court backs CRA's power to demand records from an accounting firm

On September 2, 2026, the Federal Court of Appeal ordered an accounting firm to comply with a formal CRA requirement under section 231.2 of the Income Tax Act. The requirement covered records relating to named clients under audit and entities connected to them. The Court held that the CRA didn't need prior judicial authorization, because the purpose was to advance the audits of identified taxpayers. (Canada (National Revenue) v. Zeifmans LLP, 2026 FCA 147)

What it means for you: before anyone produces records, confirm which taxpayers, entities, years and documents the requirement covers, protect the response deadline, and identify any material that's legally privileged.

Principal residence claims: keep the paperwork

In August, a Vancouver realtor received a nine-month conditional sentence and was fined $103,785 after pleading guilty to tax evasion. According to the CRA, she failed to report a taxable gain from selling a Vancouver property and made it look like her principal residence, although a tenant lived there. She also gave misleading information during the CRA's audit.

What it means for you: keep clear records of who actually lives in a property, any rental activity, changes in ownership and each sale, and give the CRA accurate information during reviews and audits.

EI rules found discriminatory to mothers laid off near parental leave

On September 3, 2026, the Federal Court of Appeal found that denying regular Employment Insurance job-loss benefits to women who had recently received maternity and parental benefits breached the Charter's equality protections. The claimants lost their jobs shortly before, during or soon after their leaves and were denied all or most of the regular benefits they would otherwise have received. (2026 FCA 145)

The Court suspended its declaration of invalidity for one year so Parliament can amend the Employment Insurance Act, which means the rules don't change yet. If this affects you, keep your records of employment (ROEs), EI decisions, leave dates and any job-loss correspondence.

BC pauses PST on professional services

On September 18, 2026, the BC government announced that the planned October 1 expansion of PST to professional services is paused, citing economic pressure from the trade dispute with the United States. Existing exemptions continue for accounting and bookkeeping, architectural, engineering and geoscience services, non-residential real estate commissions and services, and security and private investigation services.

You don't need to register for PST or start charging it because of the planned expansion. Your existing PST obligations haven't changed, and no new date has been announced.

Next personal instalment: December 15

If you pay personal income tax by instalments, the next payment is due December 15, 2026. Late or short payments can attract instalment interest and penalties. If your income or expected tax has dropped, talk to us before you ignore a CRA instalment reminder.

Our audit and review practice

We help businesses and individuals prepare for, respond to and defend CRA audits, reviews, reassessments and information requests. Received a CRA notice? Talk to us before you reply. Contact us

More reading: CRA review vs. CRA audit: what's the difference? and Do you need an accountant or a tax lawyer for a CRA audit?

Sources

• Canada (National Revenue) v. Zeifmans LLP, 2026 FCA 147
• Canada Revenue Agency, Location, location, fabrication: Vancouver realtor pleads guilty to tax evasion (August 26, 2026)
• Federal Court of Appeal, 2026 FCA 145 (EI benefits)
• CTV News, B.C. PST expansion plans 'paused,' government says (September 18, 2026)
• Miller Thomson, British Columbia pauses expansion of PST to professional services
• Canada Revenue Agency, Instalment payment due dates

This update is general information as of September 30, 2026. It is not legal or tax advice. Court decisions may be appealed, and legislation or administrative guidance may change.