|
This morning, Federal Finance Minister Bill Morneau unveiled additional changes to previously proposed tax amendments. Today's announcement focused on the introduction of a passive investment income threshold of $50,000 a year, allowing "small businesses to hold on to money for retirement and other purposes." The stated goal of this change is to ensure
only three per cent of the "most wealthy" privately owned corporations in Canada would have to pay higher taxes.
This builds on Monday's announcement which included:
- Small Business Tax Rate - Will be reduced to 10% on January 1, 2018 and 9% on January 1, 2019.
- Sprinkling income using private corporations - Effective January 2018, business owners will retain the ability to income split with family members who can demonstrate they contribute to the business; further details on the exact mechanism used to demonstrate this are not yet available.
- Converting a private corporation's regular income into capital gains - The government will abandon this plan altogether.
While the changes to the proposed tax amendments appear to be positive developments, CFA will remain diligent until full details are released. In order to ensure the voice of the franchise sector continues to be heard, CFA has accepted an invitation to appear before the Canadian Senate Standing Committee on National Finance on Tuesday, October 24. CFA will use the opportunity to educate Committee members on the contributions and importance of the franchise sector to the Canadian economy.
If you have any questions about the reports or any other advocacy issue, please contact Ryan Eickmeier, Vice President, Government Relations & Public Policy, at [email protected] or phone 416-695-2896 ext. 297.
|
