This week, the Minister of Finance released Fall Economic Statement 2018.
This Fall Economic Statement is proposing three immediate changes to Canada’s tax system, in order to enhance business confidence in Canada:
- Allowing businesses to immediately write off the cost of machinery and equipment used for the manufacturing or processing of goods. The Department of Finance has stated this will fuel new investments and support adoption of advanced technology and processes by this highly mobile sector of the economy.
- Allowing businesses to immediately write off the full cost of specified clean energy equipment to spur new investments and the adoption of advanced clean technologies in the Canadian economy.
- Introducing the Accelerated Investment Incentive, an accelerated capital cost allowance (i.e., larger deduction for depreciation) for businesses of all sizes, across all sectors of the economy, that are making capital investments. The Department of Finance expects the Accelerated Investment Incentive will help to encourage investment in Canada, providing a timely boost to investor confidence.
Click here for more details of the proposed accelerated write-offs which were announced this week.