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.

There is lots of news for Canadian taxpayers in receipt of German pensions. Ignoring these developments can result in unnecessarily high levels of taxation, or in punitive penalties for non-compliance, in both Germany and Canada.

Separation and divorce are expensive life events; they can be much more financially damaging when tax rules are not taken into account. The recent case of Blue v. the Queen in the Tax Court of Canada, although successful for the appellant, shows how easily the terms of a well-intentioned separation agreement may be ruled ineligible for tax relief.

Should Canadians top up their TFSA to get a jump on tax free savings in 2016 now that annual contributions have been capped at $5500, or should tax savings with an RRSP contribution be top priority now til the RRSP deadline of February 29, 2016?

Knowledge Bureau is pleased to announce Liberty Tax will join the January Personal Tax Update Workshop tour as a national sponsor.  Liberty Tax has more than 4,400 offices in North America, including 270 Liberty Tax Service offices in Canada.

At this time of year, professional tax and financial services are looking for highly qualified personal tax professionals for seasonal tax preparation and planning work Knowledge Bureau’s Distinguished Financial Advisor (DFA) – Tax Service Specialist™ designation bring you up to speed quickly with its online programs; in fact you (or your staff) can begin today.

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.