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.


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