New Mega Deduction a Good Start, But More Tax Reforms Are Needed

The Federal government has unveiled a Productivity Mega Deduction, which will provide immediate expensing under Capital Cost Allowance (CCA) provisions for a broad range of depreciable property, importantly on a permanent basis, for acquisitions on or after September 15, 2026. Check out the noteworthy exclusions are listed below. This tax reform is a good start, but much more needs to be done, especially for small business owners and average taxpayers to make Canada truly competitive across our tax base.

There are nearly 1.2 small businesses in Canada along with many more individuals who are in the GIG economy, or earning income through contract or freelance work. It’s critical for these clients to report all income and to accurately report any legitimate deductions and expenses – including those related to mixed-use business-use vehicles. Those expenses are always audit-prone. Here are some tips to discuss with clients to make sure those auto log details are up-to-date and to prepare them for potential decisions before the year end:  should I buy or lease a new car?

You probably don’t have any clients who have received a US$12.25 bonus. But that’s what Toronto Maple Leafs star John Tavares received when he signed with the club. In August, Tavares appeared in court, to fight  an $8 million tax bill. $1.2 million of that amount is interest which CRA says he owes.

What’s changing at CRA? Who is at greater risk of an audit? What can CRA demand, and how should you respond when an assessment is wrong? In just one week, the September 23 CE Savvy Summit: Audit Defence Management brings together Evelyn Jacks, Ruth Horst and Kim G C Moody for a comprehensive update on the issues tax professionals need to understand to prepare stronger filings and defend their clients.

For clients who have accumulated significant wealth, the question may no longer be whether they need insurance. Instead, where can insurance fit as a strategic tool to preserve wealth, provide liquidity and optimize the resources they already have? That’s the focus of an important insurance planning session at the 2026 Acuity Conference for Distinguished Advisors, featuring Daniel Dessureault, ASA, CEA, CLU®, CFP®, RWM™, MFA-P™ and Melanie Zimmerman, CPA, CA, TEP, sponsored by PPI.

One can’t avoid the messaging of the economic pain to come. Our deteriorating economic relationship with our biggest trading partner will require us to “pivot and prosper” in order to emerge “stronger and more resilient” says our Prime Minister. While exactly how we will do this is still unclear, there is one clear opportunity: for both federal and provincial governments to initiate a significant personal and corporate tax reform in the upcoming fall budget.

With the tariff war with the United States heating up, Prime Minister Mark Carney announced on September 2 that the excise tax suspension will be extended until January 31, 2027. This news provides a measure of relief for the average Canadian family but now is the time to get ready for the inflationary effects of the reinstated tax staring in February – already an expensive month for winter heating costs. Here’s what you need to know: