Please see the attached summary regarding changes to the Ontario corporate tax rates and other items announced by Finance Minister Charles Sousa.
The attached document summarizes government announcements regarding changes to the changes to the Income Tax Act proposed July 18, 2017.
Business Loss or Personal Venture: Can I Deduct Losses Against Other Income?
Guaranteed Income Supplement: Change in an Individual’s Circumstance
Charity Filing and Compliance Obligations: The CRA Has Checklists to Help
Dying Without A Will: Who Can Manage the Deceased’s Tax Affairs?
Operating A Business In The U.S.: The IRS is Targeting Smaller Foreign Entities
Non-Compliant GST/HST Registrants: Impact on Tax Refunds or Credits
Support of Refugees: Tax and Filing Requirements
Underground Economy: Contractors, Online Sales, Farmers Markets
I have prepared a summary outlining what income sprinkling is and how it impacts the taxation of individuals in Canada and in particular Ontario. I am hopeful that this documents will be useful to you in understanding the issues and help separate fact from fiction that is currently being reported in the media.
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.
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;
or in the Tax Tips & Traps Third Quarter – Issue 119;
Tax For Private Corporations: Major Changes Proposed
Employee Discounts On Merchandise: Change in CRA Policy
Death Benefits: Tax-Free Employment Benefit
Retirement Income Calculator: Ensure you are Financially Ready
Return of a Gifted Property: Charitable Organizations Beware
Voluntary Disclosure Program: Proposed Tightening
Withholdings On Remuneration To Non-Resident: Get your CRA Filings Correct
Professional’s Work In Progress Exclusion: Changes are Coming
Electronic T4 Slips: Now More Widely Available
On July 18, 2017 Minister of Finance William Morneau released proposed changes to the Income Tax Act impacting virtually all Private Corporations. The attached document highlights these proposed changes.
Employment Insurance: Some Improvements
Sharing Economy: Know Your Tax Obligations
Uber Drivers: Registration for GST/HST
Personal Use Asset in a Corporation: GST/HST and Other Tax Issues
Donation of Publicly Traded Securities: Increase the Value of Charitable Giving
Investment Management Fees for RRSPs, RRIFs, and TFSAs: Are Changes Coming?
Website History: Finding What You Thought Was Lost on the Internet
Charities and For-Profits Working Together: Receipts for Cause-Related Marketing
Leave of Absence: There Are Tax Obligations
Tax Highlights of the 2017 Federal Budget Commentary Include:
A. Personal Income Tax
B. Business Income Tax
C. International Tax
D. Sales and Excise Tax
E. Other Measures
F. Previously Announced Measures
Read the full article below.
Principal Residence Exemption (PRE): Changes to Reporting
Employment Expenses: Requirements for Deduction
Meal Reimbursements: A Taxable Benefit?
Taxpayer Relief: Financial Hardship
Payroll Advances: Tax Consequence
Objections: Not so Fast
CRA Strategies on Offshore Tax Evasion: The World is Shrinking