Tax Relief for Ranchers After Bovine TB

Summary#

The Remission Order in Respect of the 2016–2017 and 2019 Bovine Tuberculosis Outbreaks lets certain ranchers keep a longer tax deferral for compensation they received after their animals were destroyed because of bovine tuberculosis. It forgives (remits) some or all tax, interest and penalties tied to those compensation payments. The order was registered after being made on June 4, 2026 and was published on June 17, 2026.

What it does#

• Gives affected taxpayers a remission (forgiveness or repayment) of tax, interest and penalties tied to compensation paid under the Health of Animals Act for animals destroyed because of bovine tuberculosis.
• The amount forgiven is the difference between:
  • the tax actually payable for certain years, and
  • the tax that would have been payable if the compensation had been included in income according to an extended schedule under the Income Tax Act.
• Extended deferral schedule used to calculate the remission:
  • For ranchers in Alberta and Saskatchewan who received compensation in 2016–2017:
    • 2016 and 2017: no compensation included in income;
    • 2018: 83% included;
    • 2019: 11% included;
    • 2020: 6% included.
  • For ranchers in British Columbia who received compensation in 2018–2019:
    • 2018 and 2019: no compensation included in income;
    • 2020: 83% included;
    • 2021: 11% included;
    • 2022: 6% included.
• The order applies retroactively to the tax years affected (starting with 2017 for Alberta and Saskatchewan, and 2019 for British Columbia) so past returns can be adjusted by the Canada Revenue Agency.

Who's affected#

• Ranchers in Alberta, Saskatchewan and British Columbia who received compensation under the Health of Animals Act after their livestock were ordered destroyed because of bovine tuberculosis.
• The Canada Revenue Agency, which will apply the remission when adjusting tax returns and handling any interest or penalties.
• The government's fiscal cost is small; the deferral’s time value is estimated to be below $1 million.
• Background figures: more than 12,000 animals were ordered destroyed and about $40 million in compensation was paid to affected ranchers.

Why it matters#

• It reduces the immediate tax hit for ranchers who lost animals to bovine TB. That helps their cash flow while they rebuild herds over several years.
• The extended schedule better matches when ranchers were actually able to replace animals, so tax timing aligns with real costs.
• Because the order is retroactive, ranchers who already filed returns under the earlier announcement can have their returns adjusted and related interest or penalties addressed.