In 2018 the Federal Government proposed measures to encourage Canadian Controlled Private Companies to purchase certain capital property by offering accelerated tax depreciation. In more cases, the impact will be to triple the amount of expense that can be claimed in the first year relating to these types of purchasers. For certain machinery and equipment used in manufacturing, full expensing was allowed. This has been called the “Accelerated Investment Incentive”
We are super excited to welcome Active Accounting Inc., one of Calgary’s longest running bookkeeping firms, to the Achen Henderson Team! The team at Active Accounting brings over 50 years’ bookkeeping, payroll, tax, and business experience to our growing GURU team. We couldn’t be happier to welcome their team and their clients to the Achen Henderson family.
Tax circles have been buzzing over the recent changes to the Income Tax Act relating to Bill C-208 which aims to put private company share sales to children and grandchildren on level footing with private company share sales to external third parties. Prior to these changes, certain private company owners would have to sell their company’s shares to non-family members to realize their Lifetime Capital Gains Exemption (“LCGE”) – which could amount to significant tax savings depending on the type of company being sold:
On May 19, 2021, the Government of Alberta announced the new Alberta Jobs Program aimed at helping private and not-for-profit businesses support for hiring unemployed or underemployed Albertans.
With all the spending measures and no revenue raising measures, many in the tax community were taken off-guard by this budget. There were various rumors about how the government might pay for accumulating more national debt in 2 terms than all other governments in Canada’s history combined. We were expecting increases to corporate tax rates, an increase in the capital gains inclusion rate, a one-time wealth tax, or changes to the principal residence exemption, or a combination of these.