Federal Tax Changes |
The Government of Canada recently announced some of the most sweeping changes to business tax laws seen in 50 years.
The proposed changes target common tax management practices available to small businesses such as sharing income with family members, saving passive investment income in a corporation, and converting a corporation’s income into capital gains rather than dividends.
The government is framing these practices as tax evasion or loopholes. They suggested some - specifically the "very wealthy or the highest income earners" - are using private corporation to avoid "paying their fair share" of taxes, or gain a tax advantage.
The Department of Finance announced consultation starting on July 18, in the middle of summer, and lasting for 75 days until Oct 2, 2017.
The proposed changes target common tax management practices available to small businesses such as sharing income with family members, saving passive investment income in a corporation, and converting a corporation’s income into capital gains rather than dividends.
The government is framing these practices as tax evasion or loopholes. They suggested some - specifically the "very wealthy or the highest income earners" - are using private corporation to avoid "paying their fair share" of taxes, or gain a tax advantage.
The Department of Finance announced consultation starting on July 18, in the middle of summer, and lasting for 75 days until Oct 2, 2017.
We believe the consultation period needs to be extended, and that these changes will punish legitimate small businesses.
Please take our 4 question survey to tell us what you think.
Please take our 4 question survey to tell us what you think.