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split income

By McCarthy Tétrault LLP | 8 Minutes Read September 29, 2017

Owners of private corporations – be aware

On July 18, 2017, the Department of Finance released its much-anticipated consultation paper, “Tax Planning Using Private Corporations”, announced in the 2017 federal budget (the “consultation paper”). The consultation paper, along with the draft legislation released therewith, contain a number of fundamental changes to the taxation of private corporations and family trusts.

Article by McCarthy Tétrault LLP / Business, Finance and Accounting / Capital gains, income splitting, private corporations, split income, tax on split income, tax reporting requirements

By Marie-Yosie Saint-Cyr, LL.B. Managing Editor | 5 Minutes Read July 31, 2017

Upcoming corporate income tax changes to curb income sprinkling issues

On July 18, 2017, the federal Department of Finance released legislative proposals and a consultation paper dealing with tax planning affecting private corporations. The goal is to close loopholes that allow wealthy Canadians to avoid higher tax rates, largely by targeting people who incorporate themselves and then draw income from their businesses while paying lower corporate taxes. These proposals, if enacted, will potentially affect most Canadian business owners who carry on their businesses through private corporations, significantly increase the complexity of the tax rules applicable to private corporations and reverse many long-standing tax policies that have encouraged business growth.

Article by Marie-Yosie Saint-Cyr, LL.B. Managing Editor / Business, Finance and Accounting / Capital gains, Department of Finance, income splitting, income sprinkling, Income Tax Act, internal control, kiddie tax, lifetime capital gains exemption, passive investment income, passive investment portfolio, passive investments, public consultation, split income, tax on split income, tax planning strategy, tax practices, TOSI

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