Canada: Tax proposals in 2024 federal fall economic update
It is unclear whether the tax measures announced in the 2024 fall economic update will be enacted.
The federal government on December 16, 2024, issued the 2024 fall economic update, which includes proposals to:
- Change the scientific research and experimental development (SR&ED) program
- Enhance the capital gains deferral on small business share rollovers
- Reinstate the accelerated investment incentive and immediate expensing measures for certain property
- Impose additional reporting requirements on non-profit organizations
Due to ongoing uncertainty in Parliament, it is unclear whether the tax measures announced in the 2024 fall economic update will be enacted. Because Canada has a minority federal government, these tax measures cannot be passed into law without the support of opposition political parties.
Read a December 2024 report prepared by the KPMG member firm in Canada