Business in Vancouver: Morneau to allow businesses to write off capital investments faster

  • November 21, 2018

[Excerpt]

Morneau's move means that on that front, there will be a level playing field.

“The Americans have always had more attractive CCAs [capital cost allowances] than we’ve had in Canada so they permitted faster write-offs,” Finlayson said. “That’s one of the reasons they were able to survive higher statutory tax rates.”

“Canada, and particularly B.C., are jurisdictions where it is very attractive to keep your net income below $500,000 a year,” he said. “That’s a strange signal to send entrepreneurs and companies.”B.C. has a small business tax rate of 2%, which applies to the first $500,000 in profit. Finlayson called this incentive an “odd” practice because it makes the level of taxation climb by six times once that threshold is reached.