Catch up on the latest federal government Taxation changes

It has been a week of near-daily policy statements on small-business taxes. Here’s a summary with the newest:

  • The national government will move forward on an election pledge to reduce the from 10.5percent by 2019
  • Strategies to prevent allowing income splitting for family members not active in a company will proceed; Finance Minister Bill Morneau said the proposal will be “simplified”
  • The authorities won’t move forward with proposed measures to restrict access to the Lifetime Capital Gains Exemption
  • Proposed rules to discourage using corporations for passive investing will proceed, but a brand new a year to be exempt from the new high taxation. As an instance, that means $1 million held within a corporation could make a 5 percent rate of return and that earnings could be taxed under the rules
  • The government is scrapping suggested rules intended to curtail the conversion of , that caused concern in regard to intergenerational transfers and insurance policies kept within corporations
  • Morneau guaranteed incentives will be preserved for venture capitalists and angel investors. Consultations will be held on how this can be achieved

For more on small-business tax changes,

Courtesy: The Globe And Mail

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