As discussed in a prior blog post, the Canadian government has been considering ways to respond to the competitiveness issue created as a result of tax reform in the United States. Bill Morneau has already ruled out a cut to the corporate tax rate, but has suggested enhancing other tax deductions that relate to investment, such as capital cost allowance and interest deductibility. A recent article by Bloomberg drops a few more hints of what might be in store. Bloomberg spoke with a government official who is familiar with the plans. The official said that the tax changes will be unveiled with the fall economic statement, which is expected in the coming weeks. The official again suggested that no broad reduction to the corporate tax rate should be expected, and commented that changes to capital cost allowance is one of the measures under consideration.
Tax & Accounting September 13, 2018
Changes to improve tax competitiveness coming soon
CFP®, Senior Technical Writer at Wolters Kluwer Canada
Cameron Mancell, CFP®, is a Senior Technical Writer at the Wolters Kluwer office in Toronto. Cameron contributes to Canadian Tax Reporter, Preparing Your Income Tax Returns, and Preparing Your Corporate Income Tax Returns, among several others.
Related Insights
-
ArticleTax & AccountingSeptember 29, 2023Are you giving your clients the tax information they need?Key findings about tax law research and obtaining tax information from the fifth Wolters Kluwer Canadian Accounting Industry Challenges Survey
-
ArticleTax & AccountingSeptember 29, 2023Canadian Industry and Tax Season Challenges Report released: Industry insights discussed2023 Canadian Industry and Tax Season Challenges Report analyzes survey results and discusses how effectively firms meet a variety of challenges.
-
ArticleTax & AccountingApril 04, 2023Federal Budget 2023 HighlightsThis tax briefing briefly summarizes the key tax announcements from Budget 2023. Notable announcements include: amendments in response to Bill C-208, modifying the alternative minimum tax, and many measures for incentives pertaining to clean energy.
-
ArticleTax & AccountingDecember 13, 2022Small Business Taxation Changes2022 federal Budget announced a new measure that targets “substantive” Canadian-controlled private corporations. Essentially, the federal government was concerned that taxpayers are intentionally undertaking transactions to remove the CCPC status...