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.

Old Age Security (and the Guaranteed Income Supplement) are updated quarterly according to changes in the Consumer Price index. With inflation running at close to 7%, OAS, which was indexed by 2.8% in July, is expected to increase another 2.8% in October. 

In 2019, the Alberta government paused the indexation of personal amounts and tax brackets. The effect of no indexation is an annual increase in taxes because wages tend to increase with inflation causing higher taxes to be levied on individuals.  Here’s a look at the new brackets and rates:

Prepare to defend your clients against tax risk emanating from increasing CRA audit activity. Then, take a detailed look at the long and convoluted road to tax change that has resulted substantive change in how your clients report income, deductions, credits and exercise their appeal rights.  Knowledge Bureau’s new Audit Defence Course is now available online and features interesting perspectives from some of Canada’s leading tax experts.  In focus:  independent business owners, which could include you.

This year, the year end tax planning opportunities to build and preserve wealth are most important for investors and business owners swooning under the speed of change.  Join Evelyn Jacks, Alan Rowell and Dr. Dean Smith for a vibrant and comprehensive year end tax planning update at the Virtual CE Summit, November 16.  Here’s what’s on the agenda; register by October 14 for early bird savings. Tuition is tax deductible and qualifies for CE Credits.

‘Must-Attend’ annual event to welcome you back to DAC Acuity 2022. Open to all registrants, speakers and sponsors. Carol Willes is the Director of Estate Planning at BMO Private Wealth. Willes knows what it takes to assist client’s in navigating their present financial situation and develop their future legacy, while simultaneously embracing your highest standards of professionalism.

The history of taxation in Canada is as old as Canada itself and it matters in a modern context, because recently a Tax Court of Canada case was tasked with examining when a tax is a penalty, specifically regarding a Tax-Free Savings Account (TFSA).