The City of Toronto has generated approximately £76 million from an 8.5 percent visitor levy, making it the highest in the province. In contrast, the Town of Huntsville has brought in about £800,000 from a four percent levy, which constitutes over six percent of its £13 million operating budget.
This visitor levy has allowed Huntsville to capture seasonal economic activity, reinvesting funds into local services, including tourism support and marketing, as well as sports tournaments.
On February 26, 2026, Canada’s House of Commons passed Bill C-15, which includes amendments to Section 247 of the Income Tax Act. These amendments are significant as they will alter Canada’s transfer pricing rules, impacting how businesses report income and expenses across borders.
The new transfer pricing rules will apply to taxation years beginning after November 4, 2025. However, the full impact of these changes on taxpayers remains unclear, raising concerns among businesses and tax professionals.
Observers are keenly watching how these legislative changes will affect local economies and taxpayer compliance. The adjustments in transfer pricing could lead to increased scrutiny from the Canada Revenue Agency, potentially altering the landscape for businesses operating in Canada.
As the FIFA World Cup approaches, the implications of these financial strategies may become even more pronounced, with cities like Toronto and Huntsville looking to maximize their revenues during this high-profile event.
Details remain unconfirmed regarding the long-term effects of the visitor levy and the new transfer pricing rules on local economies. Stakeholders are urged to stay informed as developments unfold.