The federal government is expanding its “productivity mega deduction,” allowing businesses to immediately write off a wider range of investments, including certain spending on oil and gas pipelines, mining, infrastructure, and other assets. The measure is intended to encourage capital investment and boost productivity by allowing companies to claim deductions immediately rather than spreading them over several years.

Speaking recently with BNN Bloomberg, Laura Gheorghiu, leader of Gowling WLG’s Tax Practice Group, discussed what the expanded deduction could mean for businesses considering major investments in Canada.

“I think the other element here is this is a permanent deduction; this is not a temporary one. It’s allowing planning into the future for large investments, which usually would take much longer to put in place than a two- or three-year temporary deduction would allow. I think that really is the key: the permanency of this deduction.”

To watch the full interview, click the link below (subscription may be required):

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