Y2K Tax Relief for Small Business

Y2K Tax Relief for Small Business

Post by joannesla.. » Fri, 29 Oct 1999 04:00:00



Y2K Tax Relief for Small Business

http://www.newswire.ca/releases/October1999/28/c8386.html

-----8<---------------

OTTAWA, Oct. 28 /CNW/ - In May, The Canadian Federation of Independent
Business (CFIB) asked the government to extend the deadline for the
acquisition of computer equipment eligible for tax relief.  CFIB
applauded Minister Martin when the announcement was made to extend the
deadline from June 30, 1999, to October 31 because of the benefits this
provided to small- and medium-sized businesses in addressing the year
2000 issue.

Garth Whyte, CFIB's Senior Vice-President of National Affairs sent a
letter to the Hon. Paul Martin calling on the government to once again
extend the deadline.  A recent CFIB survey (10,500 responses) revealed
that 50 per cent of SME's had taken advantage of the federal accelerated
capital cost allowance deduction while another 25 per cent were already
Y2K compliant.  But our concern lies with the 18 per cent who had not
taken advantage of the tax measure but were planning to look into it,
and a further 7 per cent who had not even heard of the deduction.

While CFIB believes that the government's Y2K tax measure has been very
helpful to SME's, it would be even more helpful if the deadline could be
extended until the end of the year.

-----8<---------------

Jo Anne

 
 
 

1. Canadian Government Provides Tax Relief to Small Businesses for Year 2000

Straight from the source:

http://www.fin.gc.ca/newse98/98-057e.html

Government of Canada
Immediate release
Ottawa, June 11, 1998

Government Provides Tax Relief to Small Businesses for Year 2000
Computer Compliance

<snip a small portion of the news release>

Under the tax relief announced today, accelerated capital cost allowance
(CCA) deductions of up to $50,000 will be provided to small- and
medium-sized firms for computer hardware and software acquired to
replace systems that are not year 2000 compliant. This will allow
smaller firms to deduct 100 per cent of eligible expenditures in the
year in which they occur.

<end snip>

It's a start, I suppose. A direct tax _credit_ might have been a little
more helpful. For a small company that spends $50,000 on new
hardware/software, the deduction will result in a reduction of *current*
tax expense of less than $10,000. So the company is still $40,000
out-of-pocket.

--
Jo Anne

Number 2 on the best-seller list!
The comp.software.year-2000 FAQ!
Be the first on your block to read it!
http://www.computerpro.com/~phystad/csy2kfaq.html

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