Less Money Mo' Problems: Proposed tax reforms in Canada
In this paper on tax planning using private corporations, Canada's Minister of Finance sets out a series of proposed tax reforms that could significantly impact private corporations, business owners, incorporated professionals, and other individuals who have relied on legal tax planning structures. These reforms, if implemented, will hinder previously legal tax-planning strategies such as:- Splitting income among family members (“income sprinkling”)
- Utilising multiple lifetime capital gains exemptions
- Converting dividend income into capital gains
- Investing in passive investments within private corporations
- Provide comments to the federal government on the changes themselves as well as implementation details (this can be done by sending comments to [email protected]).
- Engage your taxation and legal teams on how your business structure might be impacted and what you should be doing to prepare.