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.

Finance Minister Morneau announced a significant relief package of $27 billion today to help Canadians who will have immediate financial consequences from the global pandemic. In these surreal and unprecedented times, these measures will help pay rent, keep groceries on the table and assist with caregiving needs as the economy adjusts to a new normal. There is relief for both workers and businesses, including those people who do not have a safety net under the Employment Insurance Program. This special report provides all of the details.

For individuals and families, the tax filing and tax payment extensions are good news. However, Canadians who are owed refunds will still want to file their returns as soon as possible before the pandemic peaks. Those who owe should consider filing soon as well in order to know exactly how much is due and get their financial affairs in order. Canadians will also want to make decisions about paying down high interest, non-deductible consumer debt as quickly as possible to take advantage of lower interest rates on operating lines and/or business and housing loans. There are, in fact, some opportunities to shore up financial health in these measures that follow:

In order to reduce the spread of COVID-19, many Canadian businesses are now in a position where they have to change the way that they operate, which directly impacts their revenue streams, and in turn, their employees. The government has introduced a number of measures to assist Canadian businesses, particularly SMEs.

As things change quickly with the coronavirus crisis, over 30 million people are poised to file tax returns in the next seven weeks to meet the filing deadlines of March 31 for trusts, April 30 for individual personal tax and June 15 for proprietorships.  Thousands of professionals will be helping them.  How can you protect yourself, your staff and your clients? 

 Your clients will likely need your guidance on the tax and financial consequences of life and economic events brought on by the coronovirus. Following is a checklist of financial issues for you to discuss with them. 

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