On July 18, 2017, the Department of Finance announced significant proposed changes to the taxation of private corporations. These proposed measures focused on three areas: income sprinkling among family members, passive investment income earned within corporations and converting regular income from a corporation into capital gains. If these proposals become law, they will significantly impact the tax treatment of many Canadian small businesses that are operated through a private corporation. The government has invited interested parties to comment on the proposals by October 2, 2017. Various business groups and industry associations have either made submissions to the government, or are in the course of finalizing submissions.

If you own a private corporation, it may be affected should the proposals become law.

Read

This publication is intended as a general source of information and should not be considered as estate, tax planning, personal investment or tax advice, nor should it be construed as being specific to an individual’s investment objectives, financial situation or particular needs. We recommend that individuals consult with their professional financial or tax advisor before taking any action based upon the information found in this publication. The information and opinions contained herein have been compiled or arrived at from sources believed reliable but no representation or warranty, express or implied, is made as to their accuracy or completeness. While we endeavour to update this information from time to time as needed, information can change without notice and TWMG Inc. does not accept any responsibility for any loss or damage that results from any information contained herein.

Similar Posts