Announced changes to passive investments Rare on detail

is an Spouse and taxation pioneer, private client services. On Oct. 18, two months after introducing the government's first tax-reform proposals, federal Finance Minister Bill Morneau announced updates to the suggestions on passive investments which were designed to raise the tax rates on the perceived misuse of private companies amassing funds and making passive investments. One thing was missing from Wednesday's announcement -- tangible specifics.The minister indicated that the government Read more [...]

Revised passive-income rules discourage small-business Development, critics say

Ottawa's updated proposal for taxing passive investments made through private businesses is far better than before but still does not go far enough, say some small-business owners and business experts.They argue that the proposal to more heavily tax passive income over $50,000 each year is only going to benefit small-business owners in the short term and is a disincentive for them to develop into larger businesses, at least in Canada."It is nice that they have a little bit of relief, but it probably Read more [...]

Tax cut receives a lukewarm welcome from small-business owners

Patrick Kerrigan certainly is not going to whine about Ottawa's strategy to lower his corporate taxation, but he says the struggle to protect his little family business from other, possibly punitive tax changes is far from over.The president of Alpha Poly Corp., a manufacturer of flexible packaging based in Brampton, Ont., sees the decrease in the national small-business tax rate to 9 percent from 10.5 percent declared this week as the fulfilment of an election campaign promise. Read more [...]

Minimum wage hikes can spur business owners to rethink how they Operate their Businesses

Together with the Ontario minimum wage jumped to $14 an hour in January, small business owners will need to begin taking a look at everything from pricing to staffing to maintain payroll pressures in check. The sharp increase in prices could scuttle some companies. If managed intelligently, however, some business owners could come out ahead."The intelligent business people may take this forced minimum wage, sick time and other things and really leverage it to their benefit," states Steve Burke, Read more [...]

Ottawa’s proposed tax changes could keep crucial angel investors at bay

Mike Volker is an angel investor and entrepreneur based in Vancouver. Business begets business. Successful entrepreneurs invest profits from their business in new ventures launched by other entrepreneurs. These "angel investors," and the critical role they play in the innovation landscape, are not well understood by policy makers. Instead of amplifying their nascent contributions, Ottawa's new tax proposals may keep them at bay. This is because the proposals will make it unattractive for angels Read more [...]

What to do when Earnings grow, but profits do Not

Sarah Landstreet is in the company of earning packaging products for the food sector, such as paper cups, bags and boxes. The 32-year-old's Kitchener, Ont.-based firm, Provides branded things mainly for bakeries and cafés. Ms. Landstreet, a mechanical engineer who owned a cupcake bakery in Northern Ireland before selling the company in 2011 and returning to Canada to earn her MBA, started Georgette in 2013. Her firm also provides packaging-related consulting solutions, helping businesses Read more [...]

Planned tax changes pit Attorneys, bar association on opposing sides

Ottawa's proposed tax changes for private corporations have created a rift in Canada's legal community and are refuelling a disagreement over whether attorneys are public servants, dependent on a professional oath, no matter which sort of law they practice.The issue arose following the Canadian Bar Association (CBA) recently took a position contrary to the Liberal government's proposed tax reforms, arguing they'll hurt small businesses, including some smaller law firms throughout the country.The Read more [...]

Home-builder’s dip into the red a painful lesson

The homes that builder Derek Nicholson builds aren't your regular, cookie-cutter suburban houses.His Toronto-based project management company, , works with well-known architects to develop and restore custom houses in the modern or contemporary style. They're the sorts of buildings which are frequently written up in magazines and garner awards, and the specialty has helped Mr. Nicholson, a former senior director at the City of North York's parks and recreation department, build a healthier nine-employee Read more [...]

Moves business owners can make now ahead of the proposed tax changes

Small-business owners are scrambling to figure out what actions to take right now, if any, in light of Ottawa's controversial tax changes and proposals. The Globe spoke with tax planning experts about some strategies businesses may want to consider in the weeks ahead. Income splitting The government wants to restrict the ability of business owners to reduce their taxes by sprinkling income among relatives in lower tax brackets through dividends. The change is set to take effect on Jan. 1, Read more [...]