Tax Law and International Tax Law

Canada's Prime Minister Mark Carney has unveiled the "Productivity Mega Deduction," a permanent tax measure providing immediate 100% write-offs for approximately 65% of business assets, positioning Canada's marginal effective tax rate on new business investment at 6.4% - the lowest among major economies. Alongside this initiative, the Canada Revenue Agency will now prioritize advance income tax rulings for investments exceeding $1 billion, aiming to deliver decisions within 90 business days to accelerate ma

Canada's new Productivity Mega Deduction promises to slash the marginal effective tax rate on business investment to just 6.4%, positioning the country as the most competitive G7 nation for capital deployment. This permanent tax incentive extends immediate expensing to roughly 65% of capital assets, fundamentally reshaping the economics of investing in Canadian operations across manufacturing, energy, technology, and resource sectors.

The Canada Revenue Agency has announced a new priority system for advance income tax ruling requests, targeting investments of at least $1 billion in Canada. This initiative aims to accelerate the tax certainty process for major investors by reducing processing times and providing binding guidance on how specific Income Tax Act provisions apply to proposed transactions.