Federal Tax Proposals – Are They Really Fair?
Core Partners Chartered Professional Accountants are forwarding information to all of our corporate clients regarding the July 18, 2017 proposals put forth by Federal Finance Minister Bill Morneau.
These proposals, if implemented, will have a detrimental effect on almost all private corporations in Canada. This includes small local retail stores, professionals, family farm operations, the service industry, oil and gas and forestry. If you are operating as a corporation these proposals will affect you.
The proposals include changes to income splitting provisions which have been in place since 1972, the ability to retain passive assets in a private corporation and the ability to claim capital gains on the sale of shares of a small business. The proposals, as they stand, would severely restrict the ability of a small business owner to pass their business on to the next generation of the family. Even the ability to save for a future capital purchase would be made more difficult under these new rules.
Mr. Trudeau and Mr. Morneau are both very quick to say that these proposals will only affect the “wealthy” and it is an effort to help the middle class. Don’t believe it! We suspect that most of you believe, as we do, that we are the middle class but there seems to be a perception that if one owns a corporation it is the equivalent of being wealthy.
We need to act now to try to stop or at least change these rules. Linked below is a letter that outlines opposition to the proposals. Could you please add your name/address, date and signature to the letter and forward it to Mr. Morneau with a copy to your local MP? If you are feeling ambitious you could send it to all MP’s in the house just to let them know we are not impressed with their changes. Feel free to adjust the letter to suit your own language preferences or priorities. The Minister of Finance has given a short window of time ending October 2, 2017 for the acceptance of submissions and concerns.
Below are a couple email addresses for area MP’s, Mr. Morneau and Mr. Trudeau as well as some links to articles about the ramifications of these proposals
Please let me know if you have any questions. Thank you for your support.
Justin Trudeau: firstname.lastname@example.org
Bill Morneau: Bill.Morneau@parl.gc.ca
Bob Zimmer: Bob.Zimmer@parl.gc.ca
Chris Warkenten: email@example.com
You can find the email address for any other MP’s here: http://www.ourcommons.ca/Parliamentarians/en/members?view=List
Links to articles: