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
By: Cameron Mancell
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 & AccountingJune 10, 2025
Choosing the right practice management software: 7 considerations for Canadian accounting firms
Explore 7 key features accounting firms should consider when choosing practice management software to drive growth. -
ArticleTax & AccountingJune 04, 2025
Future-proofing your accounting firm – here’s what to look for in your tax software
Discover why cloud-based Canadian tax software is key to firm growth, efficiency, and a better client experience. -
ArticleTax & AccountingJune 03, 2025
Discover the impact of AI on the accounting profession
Learn how Canadian CPA firms use AI to automate tasks, improve decision-making, and enhance client service. -
ArticleTax & AccountingMay 28, 2025
Best practices for driving efficiency & flexibility in an accounting firm
Discover five strategies for Canadian accounting firms to improve efficiency, embrace digital tools and solutions, and drive client-focused growth.