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MP Letter Regarding Changes to the Taxation of Private Corporations

We have been provided with the following letter template that may be of assistance to you if you are interested in providing your thoughts to your Member of Parliament regarding the proposed changes to the Income Tax Act released on July 18, 2017.

2017_Aug_Proposed_New_Tax-Rules_Letter_to_Member_of_Parliament

The proposed changes will impact the ability to share income of a family business and significantly increase the personal income tax rate on income from a private corporation.  The ability to transition a business among families in a tax efficient manner including impacting the ability to claim the lifetime capital gains exemption is also impacted.

Further details of the changes can be found in our previous blog entry;

2018 – Changes to income sprinkling and other rules – July 31, 2017

or in the Tax Tips & Traps Third Quarter – Issue 119;

Tax, Tips and Traps 3rd Quarter – Issue 119