Since 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
Here is a sample of the commentary and explanations:
- Corporate tax planning proposals attack on family businesses, investors – George E. Dube, CPA, CA, Tax Partner BDO Canada
- Corporate tax planning under attack – Podcast – 9:11 – Greg Weiler, CPA, CA, Tax Partner BDO Canada
- Fair means equal for all Canadian taxpayers? Our federal government thinks so… – Rachael Gervais, CPA, CA Tax Partner BDO Canada
- Tax Planning Using Private Corporations Under Attack! – Brad Berry, CPA, CA, Tax Partner BDO Canada
- BDO Webinar
Sign the petition
- Coalition for Small Business Tax Fairness Petition
- Stop #UnfairTaxChanges: Access to Canada’s Health Care Threatened
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.
- Tax planning proposals: Letter response to attack on family, small business – George E. Dube, CPA, CA, Tax Partner BDO Canada
- Letter from the Coalition for Small Business Tax Fairness (BDO assisted in preparing)
Your local MP
When writing, please ensure you introduce yourself as a constituent where applicable.
|Prime Minister Justin Trudeaufirstname.lastname@example.org||House of Commons
Suite 220, 1100 Crémazie East (Main Office)
Montréal, Quebec H2P 2X2
|Finance Minister Bill Morneau||Bill.Morneau@parl.gc.ca||House of Commons
430 Parliament Street (Main Office)
Toronto, ON M5A 3A2
|Bardish Chagger, Minister of Small Business and Tourismemail@example.com||Hill Office
Ottawa, Ontario K1A 0A6
360-100 Regina Street South
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.Tags: corporate taxes, family trust, incorporate, trusts