Update: Proposed Federal Tax Changes
October 6, 2017
Consultation Process on Tax Planning Using Private Corporations is now closed, but the Coalition for Small Business Tax Fairness’s work continues
The Canadian Veterinary Medical Association (CVMA) is part of the Coalition for Small Business Tax Fairness, which is composed of more than 77 like-minded business groups that oppose the federal government’s tax proposals that would dramatically change the way incorporated small businesses are taxed in Canada.
Find out more about the Coalition for Small Business Tax Fairness here: http://smallbiztaxfairness.ca
The Coalition wishes for the federal government to review carefully the analyses of tax professionals across the country, take the proposals off of the table, and launch meaningful consultations with the business community to address any shortcomings in tax policy.
The Coalition reiterated this message in a second letter to the Honourable Bill Morneau, Minister of Finance, on the proposed tax proposals. Please read the letter here.
It’s important to note that the government has not created new legislation yet, though they had shared draft legislation as part of the consultation package. There is still time to influence the eventual legislation before it is introduced in the House of Commons in the fall or winter.
In July 2017, Federal Finance Minister Bill Morneau announced next steps to closing certain tax loopholes.
The Department of Finance Canada released a paper detailing the changes and has invited affected business communities, provincial and territorial governments, tax advisors, commentators and other Canadians to share their views and ideas about the proposals to address the tax planning strategies discussed. The consultation date closed on October 2, 2017. You can still review details of the consultation here.
The three areas of focus for the government in this consultation are:
- Income sprinkling;
- Holding passive investments inside a private corporation; and
- Converting income into capital gains.
Please read an article from the Canadian Federation of Independent Business (CFIB) for more information: http://www.cfib-fcei.ca/english/article/9533-federal-tax-changes-add-new-threats-for-independent-business.html
What Can You Continue to Do?
The CVMA advises veterinarians with businesses to work closely with accountant professionals to understand the implications to your individual situation.
Although the consultation is closed, as a veterinarian and small business owner, you can continue to share your concerns in the following ways:
- Continue to reach out to your local MP. You may wish to use the letter template provided below to save and send as an e-mail or place in the mail. The postage of letters to your MP’s Parliament Hill office is free. We encourage you to also set up a meeting with your local MP to express your support in person.
- Letter template (when sending the letter, please include your postal code to ensure a response)
- Find your local MP here or call 1-800-622-6232 to find his or her contact information.
- Sign the petition created by CFIB
- Join the conversation on social media using #UnfairTaxChanges