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.

Gain confidence and trust of your clients: Wisdoms from Sharon Timson, DFA - Tax Services Specialist, Manitoba

"I am grateful for the blessings of wealth, but it hasn't changed who I am. My feet are still on the ground. I'm just wearing better shoes.” - Oprah Winfrey

The RESP may become a more important savings vehicle in 2017 now that the Education and Textbook Credits are playing out their swan song on the 2016 tax return.  Remember, you can still claim tuition fees and transfer up to $5000 to supporting individuals, however, with the reduced tax benefits in 2017, a fresh look at the RESP is worthwhile.

It’s no April Fool’s joke:  fingerprints of convicted tax cheats will be recorded in the Canadian Police Information Database (CPID), and accessible by Canadian police and border guards as well as some foreign agencies including the US Homeland Security department starting April 1, 2017.

The federal government has announced that the 2017 federal budget will be delivered on March 22.  However, this week, a change related to mineral tax credits was already announced; as well, some provinces are going ahead with their budget announcement dates; most recently Manitoba.

In Canada’s 150th year, Knowledge Bureau is pleased to put the spotlight on Canadian Financial Authors and celebrate Financial Advice at the Crossroads of Change at DAC Nov 5-8 in Kelowna.  This week:  Rick Atkinson discusses:  WHY SEASONALITY MATTERS WHEN YOU RETIRE