Private Corporations are being looked at more closely.
Staying in tune with what changes might be coming in the not-too-distant future is part of good planning….and there are some changes brewing.
The Department of Finance just released a paper called “Tax Planning Using Private Corporations” and it is looking closely at how private corporations obtain tax advantages that not everyone else can.
Specifically, it is zeroing in on income sprinkling, holding passive investments in a private corporation, and converting dividend income into capital gains. They are exploring legislative solutions (laws/regulations) and are seeking input. They are also digging into potential changes related to the taxation of shareholders and private corporations.
We’re active with CALU (Conference for Advanced Life Underwriting) and will keep you posted on progress. CALU is drafting a response and will be advocating on behalf of the best interests of Canadians who are thoughtfully, legally and prudently respecting our tax laws to help create and keep wealth in Canada.
We also noticed that our friends at KPMG are running a webcast on this subject on August 2nd, and you can see more details about that here (http://view.kpmgemail.com/?qs=07182215a06e91867671c289272809492c062dfccb7eb…)
Legislation will always change, and regulations surrounding taxation are not exempt. This is why we plan.
Enjoy the summer,
Tom & Allison