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?   

Paying taxes is a sign of good fortune in Canada. You may be surprised to know that about one third of Canadians do not pay taxes, but of the two thirds that do, an average of 84% of income was left after taxes.

In Coveley v. The Queen the Tax Court of Canada (TCC) had to decide whether certain allowable business investment losses (ABILs) claimed in the 2005 and 2006 taxation years by a couple who owned a business were correct. 

I was so glad to hear from Russ, in response to last week’s blog. He shared that he had read my book; realized he missed claiming moving expenses and then adjusted his prior filed returns. To his delight, he received a $6600 refund – found money!  Good for you Russ!

Andre Yong Tit Kow successfully achieved his DFA-Tax Services Specialist designation from Knowledge Bureau in 2013. We are pleased to have Andre as one of our distinguished grads.

No income? File a tax return anyway. You’ll need to do that to receive income supplements from the government, often paid monthly or quarterly, including federal tax credits like the Canada Child Tax Benefit, GST/HST credit or the Universal Child Care Benefit.

How do I calculate my ideal RRSP contribution?