Petition: Finance Canada Consultation
01/09/2017 - 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.
A petition has been circulated by concerned Canadian tax payers to urge the government to extend the intial consultaion period. The purpose of this petition is not to support, critique or challenge the proposals. Rather, this petition urges that the consultation be given the diligence and respect its complexity, in combination with its wide and significant impact on Canadian business, merits. Industry Canada reported that 10.5 million Canadians were employed by small and medium enterprises in 2015.
If you are interested in learning more about this peition, or signing, please go here.
The Minister of Finance has stated that the “government is committed to increasing the fairness of the tax system, while ensuring that the system is competitive and supports growth.” The AC Group agrees that the review on the use of tax planning strategies involving private corporations must consider the issue from a wide array of perspectives, such as fairness, simplicity and efficiency. It must also ensure there are measures in place to encourage and support business creation and development for a stronger economy that benefits all Canadians.
For further information on these proposed changes please review this memo prepared by the AC Group’s Taxation Committee.