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 last month’s Knowledge Bureau Poll, the existing charitable donations tax credit could be more generous to taxpayers. So said 75% of the respondents, who also gave suggestions for improvement of the credit.  But the tax tail didn’t always wag the donation dog! Many respondents gave to charity for other reasons.

Tax advisors must select industry classifications as they prepare tax returns for their business-owner clients. They will be interested to know that the North American Industry Classification System (NAICS), around since 1997, is updated every five years, and the most recent update was just released September 29, 2016.

It takes specialized skills to marry tax and financial planning competencies to help clients adequately fund tax-efficient income requirements. Now tax and financial advisors can certify to specialize and provide this new value-added service with the newly revised Tax-Efficient Retirement Income Planning Course.

Are you aware of all of the latest changes announced as recently as this month that will affect tax-efficient wealth planning for your clients?

"I’m not afraid of storms, for I’m learning how to sail my ship." Louisa May Alcott

Statistically, over 40% of marriages will end up in divorce, however, there are likely many more not tracked by Statistics Canada.  This is a costly life event.