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.

It has become easier to raise money for private businesses in Canada. Securities regulators in five provinces—Alberta, BC, Saskatchewan, Manitoba, and New Brunswick—announced last week that they were adopting a prospectus exemption for issuers listed on a Canadian stock exchange. The opportunity: to raise money by distributing securities without the need for an expensive prescribed offering document.

The wealth management business of the past several years has been highlighted by great growth and profitable customers. According to new research from the US1, that’s about to change with 10 key disruptors on the horizon.

“One small crack does not mean that you are broken, it means that you were put to the test and you didn’t fall apart” - Linda Poindexter.

The Income Tax Act and the Excise Tax Act allow the Canada Revenue Agency (CRA) to transfer the tax liability of a taxpayer onto third parties. There is a very distinct role for the tax and financial advisor in assisting their clients with this issue. This and more will be discussed at the upcoming Distinguished Advisor Workshop (DAW), with featured guest speakers in Vancouver Jan. 22 and Toronto Jan. 25.

From a tax and financial planner’s point of view, it is critical to know the mechanics of tax preparation as a prerequisite to tax-efficient financial planning. If you don’t know tax, you’re missing double digit returns in your plans for real wealth management with your clients.

Knowledge Bureau is pleased to announce that Intuit will join the January Personal Tax Update Workshop tour as a national sponsor. The topic of Scott Zandbergen’s keynote is End-to-End Online Practice Management: Your Firm of the Future. Scott will explain the remarkable changes happening in the tax accounting industry and what’s coming to integrate bookkeeping and taxation details.