Department of Finance Proposed Changes for Canadian Entrepreneurs
On July 18, 2017, the Honourable Bill Morneau released proposed changes to the following three areas of tax planning using private corporations:
The proposed changes significantly expand the current rules targeting income splitting among family members.
Holding Passive Investments Inside a Private Corporation
The Government has discussed changing the rules to prevent the use of the corporate tax deferral to hold passive investments inside a corporation.
Converting Income into Capital Gains
The Government has proposed new measures which seek to eliminate tax plans that convert dividend income into lower-taxed capital gains.
The measures introduced on July 18, 2017, will have a significant impact on tax planning for private corporations. Jibe Accounting will be working with our clients to determine the potential effect of such changes on their businesses and how to mitigate the impact of these changes. We will also be active in the government’s consultation process to ensure that our clients’ voices are heard moving forward.
When it comes to tax, the details matter. Contact us at Jibe Accounting to help you plan for you and your business’ future.