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.

As provinces in Canada attempt to add surtaxes to top earners in Canada, the most recent being Ontario in its defeated May 1 budget, a debate on whether top incomes should be subject to more tax continues. 

Don't miss the one-day May Distinguished Advisor Workshop in a city near you May 21-June 3. The theme is CHANGE...change in relations with CRA and change within the family as clients copy with life transitions. How can you be the best advocate and steward for your client? Earn 10 CE/CPD credits – register today!

Evelyn Jacks will kick off the Distinguished Advisor Workshops next week by helping tax and wealth advisors prepare their clients for recent budget changes and global wealth management trends that will affect planning in 2014-2015. 

John Poyser will challenge professional advisors to open their dissenting issues – with CRA, within family wealth discussions, and when preparing the transition of cottage and business assets to the next generation in a compelling program of tips and traps all tax and wealth advisors need to be aware of.

Tax audit season has begun and you need to be prepared to represent your clients with competence, confidence and a winning attitude by knowing what will be audited, what can be defended, and how to astutely position your advocacy for your client’s best after-tax position.

The Age Amount is a non-refundable tax credit found on Line 301 of Schedule 1 of the federal tax return (provincial amounts may vary).