December 13, 2018 – Small Business Needs On November 21st Finance Minister Bill Morneau unveiled the 2018 Fall Economic Statement. Canada’s economy is strong and growing, at 3% it had the strongest economic growth of all Group of Seven (G7) countries in 2017. To continue this growth, Morneau delivered a Christmas mini-budget wrapped with good government and tax breaks. It emphasizes that government has an important role to protect the environment and consumers. Doing business in Canada will be even easier. As my old professor would say, “Tax is a microcosm of life”.
Christmas Mini-Budget Wrapped with Good Government and Tax Breaks
It Supports Canadian Journalism
In contrast to Trump’s attack on the media and “fake news” nonsense south of the border, our government’s goal “is to protect the vital role that independent news media play in our democracy and in our communities”.
The budget will allow a tax credit for Canadians on online media subscriptions.
The budget will allow philanthropic fundraising for non-profit journalism to get charitable status and issue official receipts to donors.
The budget will provide tax breaks to news organizations, at a time when their traditional sources of revenue from print advertising are declining.
It Creates a Social Finance Fund
The budget will allow charitable, non-profit and social purpose organizations access to new financing.
It Promotes Canada’s Climate Goals
Businesses can write off 100% of the cost of clean energy equipment in the year when they buy it.
It Accelerates Other Business Write-Offs to Improve Canada’s Competitiveness
Businesses can write off 100% of their manufacturing equipment in the year when they buy it.
Businesses can write off 82.5% of the cost of computers when they buy it.
There are other Accelerated Investment Incentives to support investment by businesses.
Notice to Reader Dean Constand CPA publishes this blog for information purposes only. Feel free to distribute to colleagues and friends. Although the material has been carefully prepared, it is not a substitute for professional advice.