In order to bolster economic prospects in this recession, the 2009 federal budget put forward a novel 100% computer tax deduction provision for all IT software and computer hardware purchases made by Canadian businesses. This key measure, which is an important part of the stimulus policy, was introduced to help slowdown the economic slide.
Beginning in January 2009 and ending in January 2011, this Capital Cost Allowance is seen by many analysts as potentially helping change fortunes for many businesses. What is implied in the legislation is that Canadian companies have yet to realize how state of the art technologies can boost prospects to capture additional markets.
Studies by renowned think-tanks and institutions have shown that the failure to utilize technology in their business activities will hurt their ability to limit the impact of the market downturn.
By putting forward such incentives, businesses benefit on two-fronts:
- They maximize tax deductions
- This two year window is the perfect time to fuel business progress and increase investments in the industry that opens up more doors for businesses than any other, IT.
By helping allocate funds and partnering with an outsourced IT organization, like Fidelity IT Solutions for Toronto IT Support, businesses are putting in place the necessary preconditions to make capture and go beyond what was lost in this economic downturn. We remove the delimiting restrictions that a struggling economic environment has on a company’s flexibility, and help re-initiate efforts to expand aggressively into new markets.
This article goes over an industry-specific legislation which is aimed at helping stimulate business growth in recessionary times through computer tax deduction. In drafting such tax break incentives, the government is being highly suggestive of how companies can dig themselves out of their financial hole. Government and pundits alike, often, stress that the best investment path is a technological one because it can spur business development efforts in a rapid manner.
Spending on information technology is a smart way for Canadian and Toronto businesses to negate productivity slowdowns and decreased sales. Technology helps remove inefficiencies in the production process and rectifies bad marketing ventures, thus diminishing your overall costs.
Providing IT solutions and computer services to the Toronto area, we’ve helped take companies to the next level by utilizing state-of-the-art technologies and strategies in order to increase shareholder value and maximize ROI. We have computer technicians who can attend to your business and personal computer and IT needs in the Mississauga, Oakville, Brampton, Thornhill, Richmond Hill, Scarborough, Downtown Toronto, Vaughan, Aurora, Etobicoke and North York areas.