Proposed Changes to Private Corporate Tax Planning

On July 18, 2017 the Canadian Department of Finance launched a consultation regarding major changes proposed to the taxation of private corporations.  These changes focus on the concepts of income sprinkling, use of the lifetime capital gains exemption, earning investment income in a corporation, and removing value from a corporation by means of capital gains taxed at lower rates.

This webpage is dedicated to furthering this important discussion.

Link to the consultation: http://www.fin.gc.ca/n17/17-066-eng.asp 

Link to Petition Delivery Press Release - September 29, 2017

Comments on Consultation Process/Sufficiency

CPA CANADA

“The proposed changes could have significant impacts on private corporations of all sizes, their owners and families, and Canada’s economy overall. Given the scope and importance of these changes, CPA Canada believes it’s crucial to the public interest for the government to examine all the implications and alternatives before enacting any changes into law.”

"In August, we called on the government to extend the consultation period to ensure that all of the concerns and potential impacts can be thoroughly researched and analyzed. Our request was in a letter to the Deputy Minister of Finance Canada."

https://www.cpacanada.ca/en/connecting-and-news/news/professional-news/2017/july/finance-canada-consultation


Brian Pallister, Premier of Manitoba

“I would suggest that they extend the consultation period, and begin to genuinely listen to the people who create jobs in our country…”

http://www.cbc.ca/player/play/1053041731772


Alexandre Boulerice, MP, NDP Finance Critic

“These consultations are too short and too narrow to result in true tax fairness.  The NDP wants to make sure that proposed changes target wealthy tax avoiders and big corporations who are not paying their fair share.”

http://www.ndp.ca/news/extend-tax-fairness-consultations-expand-scope-ndp


Honourable Gerald Rip, Former Chief Justice of the Tax Court of Canada (2008-2014)

On the reasonable test regarding proposed split income changes: “When I read the proposed changes and see the words such as reasonable, I smile and shudder…several years until the Court can opine on what is reasonable, and what is reasonable depends on the facts of each particular case. So you may not get much help...”     

https://www.youtube.com/watch?v=GXEZLzBZgnQ


Julie Dabrusin, Liberal Member of Parliament Toronto-Danforth

"The changes proposed imply wide-ranging and far-reaching consequences.  As a result, their complexity makes it difficult to determine how they will interact with current measures. We require more time to review the proposals to adequately assess how they can be simplified and how they will impact the existing tax structures."

http://jdabrusin.liberal.ca/news-nouvelles/consultations-on-tax-planning-using-private-corporations/


Coalition for Small Business Tax Fairness

"The members of our association are disappointed that the proposals were launched in the dead of summer with a very restrictive time frame.  Many leading tax experts are saying that the proposals represent the most significant changes to small business tax provisions they have seen in the course of their career.  Canadians, and their millions of employees, deserve better."

http://www.cba.org/CMSPages/GetFile.aspx?guid=cdca2a24-99c1-4bdc-aef0-cbaaa7be4c8d


Learn more! Watch Video Tax News video commentary on the proposed changes to private corporate tax planning.

July 18, 2017


Sign the petition! Extend consultation for proposed changes to private corporation taxation - 7/18/17

Canadian small business is vital, so is comprehensive consultation.

Rushing these proposals will hurt small business.

This petition to Minister Morneau asking for the July 18, 2017 Consultation regarding private corporation taxation changes to be extended and made more comprehensive. 

September 29, 2017 Dean Blachford of Hazlo Law delivered the petition to the Department of finance.

We will leave the petition open to continue gathering support and comments.