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Fall Economic Update 2018

Updated: May 14, 2019


Finance Minister Bill Morneau delivered the fall economic update on November 21, 2018.


How will the update impact Canadian businesses?

In response to the Trump administration cutting the U.S. corporate tax rates from 35% to 21%, the Government of Canada has made some significant changes to our tax system to support Canadian businesses and help them stay competitive in the global market.


The following 3 proposed changes will have a direct impact on Canadian businesses:

  1. Corporations can immediately recover the entire cost of their machinery and equipment used for manufacturing or processing goods. The cost of machinery and equipment purchased after November 20, 2018 will be eligible for full tax write-off the year it is put in use in the business.

  2. The Accelerated Investment Incentive is an accelerated capital cost allowance for businesses investing in assets needed for long-term growth. Businesses will be able to deduct the costs quicker through a larger deduction for depreciation. All tangible capital assets, including buildings, patents and intellectual property will be eligible a first-year depreciation deduction equal to up to 3 times the applicable amount in the year the asset is put to use.

  3. Corporations can immediately write off the full cost of specified clean energy equipment.

2019 will be a good year to make capital investments in your business

The below table is from the Department of Finance Canada Fall Economic Statement:

If you would like to discuss the fall economic statement in more detail or learn how these proposed changes could impact your business, please contact our office at

403-475-8033

info@ggtcpa.com


The information in this publication is current as of November 22, 2018.


This publication has been carefully prepared; however, it was written in general terms and should not be seen as legal or tax advice. This publication should not take the place of professional advice specific to your own family circumstance. GGT Chartered Professional Accountants, its partners and employees do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken based on a decision made in relation to the concepts discussed in this publication.


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