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.

According to Knowledge Bureau’s March poll results, financial professionals agree that Budget 2018 misses the mark. Why do tax and financial advisors believe that simplicity and fairness, in particular, were not addressed, and what impact does this have on the services you provide?

Knowledge Bureau is thrilled to announce that faculty member Jenifer Bartman, who will be a guest lecturer on the November CE Summit Tour, is appearing as a regular panelist on the CBC News Network Weekend Business Panel.

With the prescribed interest rate doubling to 2% as of April 1, there will be a significant impact on Canadians who face overdue tax balances with the CRA.  It follows that understanding what interest costs are deductible and which are not, is of new interest.  This subject is one that qualified tax and financial advisors will be prepared to discuss with clients as we tee up for the busiest month of tax season.

Buying a home this spring or approaching a mortgage renewal? May is the busiest time of year for real estate transactions, and you will want to see your tax and financial advisor to discuss the implications of the new mortgage rules and rising interest rates on your after-tax earnings.

Have the CRA’s service standards improved? Reports from tax professionals and their clients show progress this tax season. However, in light of increased audit activity, diligence and thorough documentation remain necessary - as this story from the field demonstrates – or you risk major financial consequences.

Stay tuned to Knowledge Bureau Report next week as we decipher the controversial Ontario Provincial Budget.  A pre-election budget, it has already been pre-empted with a series of goodies and promises: