Coalition Opposes Federal Small Business Tax Changes
Prince George, B.C. – 42 organizations from across the country have come together to form the Coalition for Small Business Tax Fairness to present a unified voice in opposition to the federal government’s tax proposals the Coalition says would dramatically change the way incorporated small businesses are taxed in Canada.These proposals, while intended to target the wealthy, will hurt middle-class business owners from every sector of the economy says the Coalition.
If implemented, the Coalition says the proposals will restrict small business owners from sharing income with family members; limit certain forms of saving in the business, making the firm more vulnerable in bad economic times and less able to innovate and grow; and change capital gains rules which could make it more difficult for business owners to transfer their business to the next generation.
“These are shop owners, farmers, doctors, financial planners, home builders and trades in all sectors, the entrepreneurial families who are the backbone of the economy and responsible for the majority of the job creation in Canada,” said Dan Kelly, President of the Canadian Federation of Independent Business (CFIB) and member of the Coalition. “Our coming together highlights the urgency of combatting these proposals which, if legislated, would signify the biggest changes to the business tax system in decades.
“In ten years at the Canadian Chamber, I’ve never seen an issue that has generated greater concern among our members” says Perrin Beatty, President and CEO of the Canadian Chamber of Commerce “To make matters worse, allotting only 75 days for comment in the midst of the summer holidays is not a consultation, it’s a stealth attack on farmers and family businesses. The vast majority of our network’s more than 200,000 members across Canada are SMEs. They will be contacting their MPs to say that these proposals must be scrapped and replaced with measures that support Canada’s entrepreneurs.”
The Coalition has presented a letter to Finance Minister Bill Morneau asking the government to take these proposals off the table and instead meet with the business community to address any shortcomings in tax policy affecting private corporations.
NOTICED how they neglected to include lawyers???/ they are the biggest rip off artists using all these loopholes
There are no loopholes in the Income Tax Act. There is a general anti avoidance rule that allows them to disallow any transaction that is an abuse of the Act.
This is a well known tax strategy that has existed for decades and known to pretty much anyone who can prepare a tax return. There was never a big secret.
However, whenever the government wants to change tax policy, they like to declare something a loophole, as if they just discovered it today and now they’re rushing to close it.
Dividend sprinkling was a result of a Supreme Court of Canada decision that ruled dividends could be declared in different amounts on different classes of shares and the return on investment did not have to relate to amount invested – BUT – they did say the dividend should relate somewhat to the efforts of the shareholder – CRA has conveniently not enforced this section of the ruling.
But it was a ruling in the 70’s so it’s not like it’s been a big secret. Trudeau just likes to demonize the 10% of the workforce that pays 54% of the income taxes. He needs more tax money to help fund the 6,000 refugees he welcomed in with his ill advised tweet. We’re burning through $30,000 a day in cash just feeding and sheltering them. So why don’t we just go to war with all the doctors and see how many we can get to leave the country.
Who will pay for all of Jusin’s refugees and welfare bums, if he keeps sticking it to the hard working people of Canada? Can’t wait to see.
Many of you think this doesn’t affect you, but it will. I know several medical professionals and this is how the conversation goes right now.
If I do a $1,000.00 operation, how much do I get to keep. Answer – if you leave the money in your corporation you can keep $870.00 of it and invest it for your retirement.
If the changes go through, you get to keep $500.00 and the government get’s $500.00 and unlike doctors employed by the government directly who have a defined benefit pension plan, you will have to try and save for your pension with with the inadequate RSP limits.
Meanwhile, the BC government is fighting with the surgeons on how much they will pay for the operations. At some point, the surgeons will either move to a location where they can make more money, or, they will actually do less surgery because not only has the government shrunk the pie, but they’ve let them keep less of it.
So, the waiting lists will grow and while you cheered at the demise of the 10% suddenly you find that hip replacement waiting list you were on, is a year longer.
Or, the province will have to increase rates to get the doctors to where they were before Justin’s ill advised attack on the most useful and productive people in the country.
Meanwhile, the BC government is fighting with the surgeons on how much they will pay for the operations. At some point, the surgeons will either move to a location where they can make more money, or, they will actually do less surgery because not only has the government shrunk the pie, but they’ve let them keep less of it. = extortion . Patients = hostages .
Yes and no. Where are you going to magically move to and make more money? You get a bonus as a DR for living here, cost of living is way less etc etc. It affects everyone, no matter what the profession is..
But you know what? A lot of medical professionals voted for JT, so that’s what you get.
Not all doctors live in Prince George. My comment is national in scope. And if surgeons leave major urban areas to the states, those areas will start recruiting the surgeons we have here. If we have a net loss of medical professionals, be assured, those of us in the hinterlands will feel it most.
This affects my business as my wife and I split the income from it. Now one will have to become an employee and the other owner. Guess one of us can then collect government checks like EI or WCB where neither can right now without paying it back.
They (government in general) are making it tougher for people to make an independent go of it. Not going to buy a new pickup for use at work this fall as we planned – run the old one until it dies, 15 bucks is going to affect the people on disabilities we supplement the income of – not this year but next (feel bad but what can you do?), the list goes on.
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