Blog: A look at Canada’s 2018 Fall Economic UpdateNovember 28th, 2018
During this Fall economic update on November 21, 2018, the Minister of Finance of Canada announced Canada’s reaction to the recent United States tax reform, which took the guise of important modifications to the Capital Cost Allowance system of Canada’s fiscal regime.
As a result, all assets acquired from November 21, 2018 onward will have access to accelerated depreciation rates in the first year ranging from an increase of 150% to 300% of the allowance previously available.
An even higher concession was made for assets in the manufacturing and processing sectors and for clean energy equipment as the full cost amount of these assets will be completely deductible in the first year.
Anti-abusive provisions have been put in place to prevent misuse of these new provisions, in particular where the assets are acquired from non-arm’s length persons or through rollovers provisions.
Theses new measures are expected to enhance business investments in Canada and to help local businesses growth.
To learn more about these new measures, connect with the authors.
About the Authors:
Mathieu Ouellette, CPA, CA, LL.M Tax, is a Tax Partner at Crowe BGK
Connect with him: firstname.lastname@example.org
Daniel A. Brisebois, L.L.B., D.D.N., M.Fisc. is a Tax Specialist at Crowe BGK
Connect with him: email@example.com
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