On July 18, 2017, the Department of Finance released a consultation paper and draft legislation that will significantly and negatively impact the tax and succession planning arrangements of many shareholders of private corporations. CALU is very concerned with this legislation, and believes that if these proposals are enacted as described in the consultation paper it will send a very negative message that will stunt the growth of the small business sector. To ensure our members are familiar with the Government proposals, this CALU Special Report, published in both English and French, provides a “condensed” version of the consultation paper as well as our preliminary observations on the potential impact of the proposals on small business owners and life insurance ownership.
Topics covered in this report include:
- Excerpts from Finance’s Consultation Paper on the Taxation of Private Corporations
- Private Corporations – Tax Planning Strategies
- Income Sprinkling
- Holding Passive Investments Inside a Private Corporation
- Converting Income into Capital Gains
- CALU Comments – Summary on the Impact of these Proposals