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?   

Over the last couple of weeks, the provincial governments in the Atlantic provinces brought down their 2013 provincial budgets.

Budget 2013 included some measures that would help the Canada Revenue Agency (CRA) find and prosecute international tax non-compliance, such as the Stop International Tax Evasion Program. A recent decision from the Federal Court, Soft-Moc Inc. v MNR (2013) FC 291, sets a precedent that strengthens the CRA’s ability to access information outside of the country.

On April 4th, the Canada Revenue Agency released two separate statements in regards to recent media coverage that has identified rampant disregard for Canada’s tax laws, specifically hiding money in offshore tax havens.

Canada’s household wealth grew at an annual rate of 7.8% between 2000 and 2012 according to the 2012 Credit Suisse Global Wealth Report, which also predicted last October that with moderate and stable economic growth, total household wealth will rise over the next five years by 50% around the world. 

For contracts made after March 28, 2012, an employee's claim for the Overseas Employment Tax Credit will be reduced.

Artists and musicians may claim expenses for items specific to their profession, including capital cost allowance on musical instruments.