Minister of Finance Bill Morneau in Ottawa, on Friday, Nov. 20, 2015. THE CANADIAN PRESS/Adrian Wyld
I received an important letter today from Mr. Ploegman (CPA, CA, Fort Group) detailing proposed tax policy changes that affect small business in Canada.
As many of you will be affected by these new changes, I urge you to please read the letter below and contact your MP about extending the consultation period.
On July 18, 2017 the federal government released draft legislation, proposing changes to the current tax law, targeting what they perceive to be abuses by private Canadian corporations. These changes, if enacted, could have significant consequences on the current tax planning utilized by many private corporations across Canada.
Notably, the changes would significantly affect income splitting and the ability to pay dividends to inactive shareholders (i.e. spouse and children over 18). Additionally, the government has targeted active corporations that hold passive investments, looking to take away any tax deferral currently available to private corporations.
In order to extend the consultation period and get the government to consider the seriousness of these changes on the livelihood of small business in Canada, we are encouraging clients to write to their MPs/Mr. Morneau.
Look up your MP: https://lop.parl.ca/ParlInfo/Compilations/HouseOfCommons/MemberByPostalCode.aspx?Menu=HOC
For further details on the changes, please visit Fort Group's website:
http://www.fortgroupcpa.ca/hot-topics/57-important-tax-changes
If you are interested in writing your MP, Mr. Ploegman has kindly developed a template for that purpose: