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?   

On January 15, the Finance Department released legislative proposals, which amongst other things, changed contentious provisions related to the taxation of certain trusts and estates. Reproduced with permission is the following analysis of the proposals from guest contributor and tax expert Kim Moody.

Canadians have responded enthusiastically to the federal government’s pre-budget consultations; tens of thousands of Canadians have shared their thoughts, the highest-ever turnout for pre-budget consultations on record according to Finance Canada. Suggestions provided by Knowledge Bureau follow. Have you added your voice? It’s easy to do it online at the link above.

When fewer, younger taxpayers must pay most of the taxes while looking after both the elderly and minors, it’s much more difficult for them to accumulate assets for their future, and get good returns on their investments in this environment of de-population.

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.