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?   

Most people seem to understand that you can’t treat your business’ money as your own . . . or do they? How many small business owners expense personal items from the company general account? This can get you into trouble on a tax audit and worse; significantly erode personal wealth.

Beware the taxman, Uber drivers. The rise of the gig economy comes with its own unique challenges from a tax perspective, and an appeals case from Uber Canada Inc., currently with the Tax Court of Canada sheds light on the grey areas that exist.

It’s a potential administrative and tax filing nightmare. On January 15, the federal government introduced new draft legislation prompted by the debacle created by their Phoenix Payroll System. These changes are designed to reduce the burden on employees who are now required to repay amounts paid to them in error.

The Statistics Canada’s Individual Income Tax Report*released on January 8, highlighted just how much Canadians are being over-taxed by the CRA. With average tax refunds coming in at $1,757 for the 2018 filing season, many taxpayers are effectively providing the government with interest-free loans of approximately $150 per month for up to 16 months before they see their refund. Just how much is that really costing you?

Debt reduction could be the leading financial management strategy as 2019 begins, given the grim housing market forecast, where the biggest concern relates to housing affordability. RBC reports that this will remain a financial challenge for many Canadian families, as the cost of homeownership relative to median income levels will keep rising.

Shake out the cobwebs and sharpen your tax knowledge with Canada’s most popular advanced tax update featuring a detailed line-by-line approach to the new 2018 forms and schedules from the CRA. The national tour featuring keynote speaker Evelyn Jacks and an outstanding faculty of experienced instructors starts Thursday January 17 in Winnipeg; then arrives Monday the 21 in Toronto ; Ottawa on the 22, Calgary on the 23, Edmonton on the 24 and Vancouver on the 25th.  Don’t miss out - there are only a few spots left so call or enroll online today.