Immediate Expensing Rules: Good Tax Policy?

Over the course of the last two federal budgets (April 16, 2024 and November 4, 2025), the rules for claiming Capital Cost Allowance (CCA) have been uncertain. The proposal to extend immediate expensing rules for certain acquired assets were paused for over a year and then re-introduced in a series of four complex measures which together with new rules for Scientific Research and Experimental Development have become known as the “Productivity Super-Deduction”.  A backdrop appears below. The key question: will this complexity be effective as an economic stimulator?   

In the midst of many provinces facing increased lockdown measures, the CRA has released new information, documentation and resources about Canada Emergency Response Benefit repayment and taxation. It has the potential to both aid and add to the complexity and confusion many are facing, particularly when it comes to the CERB.  Here is what you need to know:

Employees who use a cell phone in their work may be wondering about claiming costs as an employment expense.  CRA has some very complex rules to accompany the issue and  both employers and employees should be aware of them.  Here is a primer:

It turns out that the 74% of our December poll respondents who answered no to our question “Do you think that Canada is headed towards strong economic recovery in 2021?” were right: Canada is not yet poised for a strong economic recovery.  We’ll report on some of their reasons why, but also take note of new economic data.

Are you training new and returning staff working in independent tax filing firms? Perhaps you are  a CPA in public practice, a financial advisor, public trustee, legal or financial assistant, municipal officer, payroll or software company serving individuals and business owners with tax compliance?  Then don’t miss Knowledge Bureau’s acclaimed Advanced T1 Tax Update 2021 for 2020 T1 Returns.  Here’s what’s new in our innovative offerings this year:

With the dramatic increase in online transactions and digital solutions, and the challenges and opportunities presented by the pandemic, clients require more frequent professional communications, improved collaboration between their financial professionals and more efficient processes in building wealth with all family stakeholders in a highly complex tax and investment environment. Differentiate yourself as a Real Wealth Manager™ to help with high value professional skills. Consider the following:

This year, the tax season will again be different, particularly with new rules stemming from pandemic benefits and tax credits and the complexity they have created for tax filers. And, lots has  changed at the CRA,  too. That’s why there is a great  opportunity for professionals and new entrants to the tax preparation market to improve their credentials during the continued lockdowns.