The 2026 legislative amendments to the Canada Business Corporations Act (CBCA) represent a seismic shift in corporate responsibility. Beyond mere financial reporting, corporations are now legally required to integrate stakeholder interests into their core fiduciary duties. Bill C-42, which received Royal Assent on December 15, 2025, introduces binding obligations regarding climate-related disclosures, diversity representation, and beneficial ownership transparency.

The new public registry for beneficial ownership is now live. All federally incorporated businesses must disclose individuals with significant control (ISC). This initiative aims to mitigate money laundering and enhance corporate accountability across the Canadian market.

Disclosure Requirement	Timeline	Penalty for Non-Compliance
Initial Registry Filing	Immediate (upon incorporation)	$100,000 - $500,000
Annual Update	Within 60 days of year-end	$50,000 + Late Fees
Change Notification	15 days of any change	$25,000 per violation
Public Registry Access	Continuous	Administrative penalties

An individual has significant control if they:

• Hold 25% or more of the voting shares (directly or indirectly)
• Hold 25% or more of the equity shares (fair market value)
• Have influence over the corporation "as if" they held such shares
• Hold options or convertible instruments that would trigger 25% threshold

Public companies must now achieve minimum 40% representation from underrepresented groups (women, Indigenous peoples, racialized persons, persons with disabilities, and LGBTQ2+ individuals) on boards of directors. Compliance is mandatory for all TSX-listed companies and federal Crown corporations.

DCIA 2026 introduces the concept of 'Algorithmic Accountability'. If your digital enterprise utilizes automated decision-making (AI) for consumer credit, hiring, or essential services, you are now required to provide human-readable explanations of how those algorithms function, including training data sources and bias mitigation measures.

Compliance Metric	2025 Standard	2026 Requirement
Data Portability	Limited to basic data	Full, machine-readable, instant transfer
AI Risk Audit	Self-Regulated	Third-Party Certified Annually
Penalty Ceiling	$10M or 2% revenue	$25M or 5% of Global Revenue
Breach Notification	72 hours	24 hours

New restrictions on data leaving Canada now apply. Personal information may only be transferred to jurisdictions with "substantially similar" privacy protections. The Minister has published a list of approved jurisdictions (EU, UK, Japan, South Korea) while transfers to other jurisdictions require a data protection agreement (DPA) with enforceable mechanisms.

The Canada Labour Code has been significantly amended to protect the growing remote workforce. Part III of the Code now includes specific provisions for distributed work arrangements.

Employers are now mandated to:

• Provide necessary equipment (laptop, monitor, ergonomic chair) or a minimum $500 annual allowance
• Cover reasonable home-office utility costs (electricity, internet) estimated at $50/month
• Conduct virtual ergonomic assessments for all full-time remote employees
• Maintain workers' compensation coverage regardless of work location

The 'Right to Disconnect' provisions have been expanded beyond mere policy requirements. Employers must now implement technical measures to prevent work communications outside established hours, including:

• Automatic email delivery delays for non-urgent messages after 6 PM
• Prohibition of performance metrics based on after-hours responsiveness
• Mandatory "quiet hours" during which internal communications are paused

The Competition Act now includes specific provisions targeting anti-competitive conduct in digital markets. The Competition Bureau has established a specialized Digital Markets Directorate with enhanced investigative powers.

Transaction Size	Pre-Merger Notification	Review Timeline
$0 - $50M	Voluntary	N/A
$50M - $200M	Mandatory if both parties in Canada	14 days initial review
$200M+	Mandatory regardless of location	45 days (can extend)

Following TCFD recommendations, all federally regulated entities with revenues exceeding $1B must publish annual climate reports including:

• Scope 1, 2, and 3 greenhouse gas emissions
• Climate-related risks and opportunities assessment
• Transition plans aligned with net-zero by 2050
• Governance structures for climate oversight

The Fighting Against Forced Labour and Child Labour in Supply Chains Act now requires annual reports from government institutions and private sector entities. Reports must detail due diligence processes, risk mapping, and remediation measures.

Significant changes to corporate taxation include:

• Digital Services Tax (DST): 3% on revenue from digital services exceeding $20M annually
• Excess Profits Tax: 15% surtax on pandemic-era windfall profits (retroactive to 2025)
• Patent Box Regime: 50% reduction on income from Canadian-developed patents

Province	Provincial Rate	Federal Rate	Combined Rate
Ontario	11.5%	15%	26.5%
Quebec	11.5%	15%	26.5%
British Columbia	12%	15%	27%
Alberta	8%	15%	23%
Nova Scotia	14%	15%	29%
New Brunswick	14%	15%	29%

Updated rules of origin and digital trade provisions:

• Rules of Origin: Regional value content (RVC) increased to 75% for automotive sector
• Digital Products: Most-favored-nation treatment, no customs duties
• Labor Value Content: 40-45% of automotive content must be made by workers earning $16+/hour

The Canada-EU Comprehensive Economic and Trade Agreement now includes expanded services trade provisions, mutual recognition of professional qualifications, and enhanced investment protection with ISDS reform.

The maximum AMPs have been substantially increased across all regulated sectors:

Violation Type	Individual Max	Corporate Max
Privacy breach	$100,000	$25M or 5% revenue
Competition violation	$250,000	$50M or 3% revenue
Corporate governance	$50,000	$5M
Anti-money laundering	$500,000	$10M + director prosecution