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ARTICLE · 01 APRIL 2016

Budget 2016: Eligible Capital Property Rules Revamped

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The new taxation rules relating to what was formerly ECP raise a number of compliance issues and planning considerations.

CanadaTax
Michael Friedman
Michael Friedman
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Budget 2016 proposes to repeal the current rules governing the taxation of eligible capital property ("ECP") and transition the current ECP regime into the more general capital cost allowance ("CCA") system provided for under the Income Tax Act (the "Tax Act").

The proposals contained in Budget 2016 were first announced in concept by the Government in 2014 and were the subject of consultations conducted by the Department of Finance over the past two years. In Budget 2015, the Government indicated that draft legislative proposals would be released in due course. It was widely expected that detailed legislative amendments relating to the tax treatment of ECP would be released in Budget 2016.

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