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?   

It’s more important than ever for Millennials and their Boomer parents to start discussions about multi-generation tax, retirement and financial planning, and after dinner story-telling over the holidays is a great way to start a new financial journey in 2016.  Just how do you build a Wealth Purpose with a Tax Strategy?  Evelyn Jacks’ Family Tax Essentials will provide you with some great new ideas!

How can you be a better steward of your clients’ wealth? How can you communicate effectively to them your role as a financial fiduciary? The trend in the financial industry is towards greater transparency as the value of advice trumps a transaction-based service. But to create a more powerful value proposition for your advisory practice in 2016, you need to refocus on your fiduciary duty.

The Federal Government introduced a Ways and Means Motion on December 7 that will implement the promised middle income tax cut to 20.5%. In addition, there are a host of new tax increases for high net worth clients: Canadian retirees and business owners that tax and financial advisors will want to reach with planning advice soon.

The recent judgment in Ellis v. The Queen shows that it is possible to successful challenge the Crown’s case for penalties, after a third party re-assessment of taxes to a delinquent taxpayer’s spouse. The appellant had been assessed $10,199.73 in penalties under section 163 of the Income Tax Act (the Act) when her husband transferred 50% of their matrimonial home, targeted by CRA to cover his $50,000 federal tax bill.

Although the government is limited to three years to reassess returns in most cases, taxpayers have 10 years to make changes to their returns.  That’s why it’s important to call clients now- especially delinquent filers to preserve tax filing rights.  Specifically, they will have until December 31, 2015 to make changes to or file their 2005 return before it becomes statute-barred.

Thinking of leaving Canada for extended vacations or visits? You will now need to be more careful about your absences if you want to remain eligible to collect social benefits, like the Canada Child Tax Benefit, Old Age Security or Employment Insurance.  That’s thanks to the Perimeter Security Pact between Canada and the United States, which was initiated back in 2011 and has been undergoing four phases of implementation.