On November 21, 2018, the Department of Finance Canada
("Finance") released the 2018 Fall
Economic Statement (the "Statement"). In
a clear response to the lowering of the corporate tax rate (and
other corporate tax measures) in the United States, Finance
introduced new measures that will lower the corporate tax otherwise
payable by some corporations in Canada. However, Finance did not
lower corporate taxes by lowering the actual tax rates. Rather, the
proposed changes will allow corporations to accelerate the tax
depreciation of certain capital investments, thus lowering the
effective corporate tax rate (at least in the earlier years).
Finance proposed changes that will allow businesses to: (i)
immediately write off the cost of machinery and equipment used for
the manufacturing or processing of goods; (ii) immediately write
off the full cost of specified clean energy equipment; and (iii)
rely upon an accelerated investment incentive (the
"AII"), which will allow all
