Tax lawyer Michael Goldberg was quoted in "A 93% tax rate? Private corporation tax could make it possible" on why he thinks the proposed changes to the Income Tax Act will likely have a huge and unfortunate impact on Canadian small business owners. The article was published on August 4, 2017, by Financial Post. This article was inspired from Michael's original article written with Mac Killoran and Jay Goodis available here.
A 93% tax rate? Private corporation tax could make it possible
By: Jamie Golombek
Small business owners across the land are still reeling from last month's announcement by Finance Minister Bill Morneau targeting private corporations and fundamentally changing the way businesses and incorporated professionals are taxed. The tax strategies being challenged can be categorized into three main areas: income sprinkling, earning passive investment income in a corporation, and converting a corporation's ordinary income into tax-preferred capital gains.
In a previous column, I've discussed the proposed income sprinkling rules that would effectively eliminate opportunities for business owners to sprinkle dividends and capital gains among adult relatives, unless they contribute "reasonable" labour or capital to the business...Read the full article at Financial Post.
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