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Canada: Updated guidance on excessive interest and financing expenses limitation (EIFEL) rules

Various clarifications and additional details provided

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january 29, 2026

The Canada Revenue Agency (CRA) periodically updates its online guidance on the excessive interest and financing expenses limitation (EIFEL) rules.

In particular, the CRA recently revised its EIFEL guidance to:

  • Clarify how to determine interest and financing expenses (IFE) and interest and financing revenue (IFR) in certain situations
  • Provide details on how taxpayers must file certain elections
  • Address other compliance issues, including late-filing penalties, necessary processes that may result from taxpayer errors and additional instructions for EIFEL SCH130 forms

Read a January 2026 report prepared by the KPMG member firm in Canada

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