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.

The pre-budget consultations for the 2014 Ontario budget closed on March 28 but the date of the budget has yet to be announced. However, recently leaked government documents indicate that the budget will be presented in the first week of May.

The 2014 Alberta provincial budget was tabled on March 6, 2014. This budget shows an operational surplus of $2.6 billion and the government projects an operational surplus for the following three years of its financial plan.

The 2014 Saskatchewan provincial budget was delivered on March 6. The budget was the seventh consecutive balanced budget in the province. 

The Manitoba provincial budget was tabled on March 6. Two new tax initiatives were announced.

The premier of British Columbia tabled the 2014 provincial budget on February 18. The budget contained a number of tax-related changes, not all of which were directly related to income tax.

The 2013 Federal Budget announced that, beginning in 2014, the gross-up of small business dividends will be reduced from 25% to 18% and that the federal dividend tax credit will be adjusted as well. The net result is a slight increase in the taxation of other than eligible dividends at the federal level.