Last Minute Tax Filing Tips

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.

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.

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

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.

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.

With the transition to Accounting Standards for Private Enterprises (ASPE) and International Financial Reporting Standards (IFRS) now underway, for private and public entities, we are noticing common areas of concern.

In the March 2013 Canadian federal budget, the Minister of Finance announced an intention to consult on possible measures to "protect the integrity of Canada's tax treaties while preserving a business tax environment that is conducive to foreign investment".

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

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.

Canada has introduced the Productivity Mega Deduction, a permanent tax incentive allowing immediate expensing for most depreciable property and Canadian development expenses. How will this policy shift Canada's competitive position for business investment, and what strategic considerations should taxpayers evaluate when claiming these enhanced deductions?