Attack on small, family business tax: What you can do

Posted on: September 11th, 2017 by Real Estate Accountants No Comments

Corporate Tax Planning proposals announced by Liberal government attack on family business and investorsSince the government released proposals on July 18th that attack the corporate tax planning that small business, family business, entrepreneurs, and real estate investors use, we have been asked by many of our clients and contacts: What should we do?

If you’re concerned about the government’s tax planning proposals read on for actions you can take today.

Learn more about the proposals

Talk with your business colleagues and ensure that you all understand the impacts of these proposals. If you use or should be using a corporation or family trust, these changes will most likely have a negative impact on you and your family.

Tax Planning Using Private Corporations

This link contains the government proposal paper, as well as information on how to make a submission to the government on these proposals: http://www.fin.gc.ca/activty/consult/tppc-pfsp-eng.asp

Commentary

Here is a sample of the commentary and explanations:

Sign the petition

Write or talk to your elected officials

The Department of Finance and Prime Minister seem very reluctant to change based on the majority of their commentary. Some of the government’s MPs, however, are feeling the heat and pushing for changes. Let them know significant changes are needed to their proposals in the interest of fairness. There’s little reason for them to change unless they understand the implications of what they are doing and/or are worried about re-election.

Mail may be sent postage-free to any Member of Parliament.

Sample letters

Your local MP

See https://www.ourcommons.ca/Parliamentarians/en/members

When writing, please ensure you introduce yourself as a constituent where applicable.

Prime Minister Justin Trudeau justin.trudeau@parl.gc.ca House of Commons
Ottawa, Ontario
Canada
K1A 0A6
Constituency Office
Suite 220, 1100 Crémazie East (Main Office)
Montréal, Quebec  H2P 2X2
Finance Minister Bill Morneau Bill.Morneau@parl.gc.ca House of Commons
Ottawa, Ontario
Canada
K1A 0A6
Constituency Office
430 Parliament Street (Main Office)
Toronto, ON  M5A 3A2
Bardish Chagger, Minister of Small Business and Tourism  bardish.chagger@parl.gc.ca Hill Office
Room 107
Confederation Building
Ottawa, Ontario K1A 0A6
Constituency Office
360-100 Regina Street South
Waterloo, Ontario

Voice concerns to relevant professional organizations

There is strength in numbers. For example, the Coalition for Small Business Tax Fairness, which BDO helped form, has now risen to 50.

BDO Canada itself has met privately with the Finance Department on this issue, as well as various senators and politicians, and will be making a submission on behalf of our clients. BDO has assisted a number of organizations, including the Canadian Federation of Independent Businesses, Chamber of Commerce, and Coalition for Small Business Tax Fairness in drafting replies to the government.

On social media you can use the hashtag #unfairtaxchanges or #taxesinéquitable to voice your concerns as well.

Talk with your accountant

There are important steps many people should take prior to January 1, 2018. Some rules are effective July 18, 2017. Ensure you know the steps that are right for you.

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