David Silber | Tax Accountant Toronto | Crowe Soberman (Video)

Canada's new Productivity Mega Deduction promises to slash the marginal effective tax rate on business investment to just 6.4%, positioning the country as the most competitive G7 nation for capital deployment. This permanent tax incentive extends immediate expensing to roughly 65% of capital assets, fundamentally reshaping the economics of investing in Canadian operations across manufacturing, energy, technology, and resource sectors.

On July 2, 2026, the Canada Revenue Agency (CRA) published its updated Guidance on the Common Reporting Standard (Updated CRS Guidance).

Whenever there is a change in government, it is usually accompanied by changes to tax measures. This article will summarize the key tax initiatives we may see in the near future as a result of the new Liberal majority government in Canada.

The GST/HST New Housing Rebate lets a purchaser recover part of the GST/HST paid on a newly built or substantially renovated home used as a primary residence.

A salary deferral arrangement is an anti-avoidance rule in Canadian tax law, designed to prevent employees from deferring tax on income that has already been earned.

The deductibility of interest continues to be a frequent subject the tax courts.

Canada's proposed Productivity Mega Deduction would allow businesses to immediately write off the full cost of newly acquired capital assets, including aircraft and flight simulators, rather than spreading deductions over multiple years. This permanent change to the capital cost allowance regime could significantly benefit the business aviation industry, though taxpayers must carefully consider timing, income requirements, and documentation to maximize the deduction's value.

Canada's new Productivity Mega Deduction permanently provides immediate expensing for a wide range of depreciable property and Canadian development expenses, dramatically expanding the scope beyond the previously announced Productivity Super Deduction. The measure aims to reduce Canada's marginal effective tax rate on new business investment to 6.4%, positioning it as the lowest among major economies and less than half the U.S. rate.

Employee stock options are a benefit offered by companies to their employees, giving them the right to purchase company stock at a set price (known as the exercise or strike price) after a certain period of time.

Canada's federal government has introduced the Productivity Mega Deduction, a groundbreaking tax measure offering immediate expensing for approximately two-thirds of capital asset investments. This initiative aims to reduce Canada's marginal effective tax rate on new business investments to 6.4%, positioning it as the most competitive among G7 nations. The measure extends to Canadian Development Expenses in the energy and mining sectors, potentially transforming the economics of major capital-intensive proj