Tax Update #3
On July 18, 2017, the Department of Finance released their discussion paper with proposed measures on the use of private corporations for tax planning http://www.fin.gc.ca/activty/consult/tppc-pfsp-eng.pdf. The consultation period ends October 2, 2017.
What has Davis Martindale been doing?
- Together with DFK Canada (our nationwide affiliate of member accounting firms), we formed a committee focussed on identifying the issues and developing responses.
- Over the summer, Davis Martindale tax partners met with local MPs Karen Vecchio, Kate Young and Peter Fragiskatos. We helped them to better understand the technical aspects of the proposed changes, and voiced our concerns regarding the potentially damaging consequences to our small business clients, and the Canadian economy.
- Michael Koenig attended a recent roundtable with the Minister of Small Business and Tourism, Bardish Chagger, and seized the opportunity to express concern for our clients directly to the Minister.
- These proposed tax changes have brought about an unprecedented level of co-operation and collaboration among tax professionals across Canada. Since July 18th, Davis Martindale partners and staff have been active and invested participants: joining discussions, and sharing information and ideas.
What can you do?
- Sign the official online petition that will be presented in the House of Commons: http://ow.ly/1e4430frsOp
- Email a submission (firstname.lastname@example.org) to the formal consultation by the October 2, 2017 deadline.
- Contact your MP! Tell them how these proposed changes will affect you:
- Will they interfere with your spouse or other family members being fairly compensated for their direct or indirect contributions to your business?
- Are your retirement plans affected by the proposed changes?
- Will they affect your ability to manage your invested capital in the manner that you see as best for your current and future business endeavours?
- Will they make you second guess selling your business to the next generation if that tax cost is significantly higher than selling outside of your family?
- Do they result in a punitive tax cost to an estate that is currently being administered?
- Will your future estate face an unfair tax burden?
We welcome your input! Please direct comments to email@example.com. As always, the partners and managers at Davis Martindale are here to discuss directly any concerns you might have.