Potential Tax Changes for Private Corporations

July 21, 2017 | Colleen O’ Connell-Campbell


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The 2017 federal budget identified tax planning areas where the government feels that some owners of private corporations have gained unfair tax advantages.  On July 18, 2017 Federal Minister of Finance, Bill Morneau, announced the release of a consultation paper and draft legislation to address the following issues:

  • income splitting;
  • multiplication of the capital gains exemption;
  • holding a passive investment portfolio inside a private corporation, and
  • converting a private corporation's regular income into capital gains.

The government is seeking input on its proposals by October 2, 2017.

 

Excerpt from RBC Wealth Management: The Navigator - Federal government targets tax planning using private corporations.

Contact Colleen directly at colleen.campbell@rbc.com for a full copy of the publication.

 

The information in the attached article is not intended to provide legal or tax advice.  To ensure that your own circumstances have been properly considered and that action is taken based on the latest information available, you should obtain professional advice from a qualified tax advisor before acting on any of the information in the attached article.