Jan 25, 2017

Hello CCA Class 14.1, Goodbye Eligible Capital Property

By Ryan Morris Practical Law

On January 1, 2017, the eligible capital property (ECP) regime in the Income Tax Act (Canada) was repealed and replaced with new capital cost allowance (CCA) class 14.1. This change is significant in various contexts, particularly mergers and acquisitions (M&A). This Update explains what the change means for vendors and purchasers in M&A transactions.