Today Dominion Tax Law’s Jonathan Garbutt appeared on the Business News Network (“BNN”) to discuss the Government’s proposed tax changes, and how they are going to affect small businesses across the country. You can view the video here: https://www.bnn.ca/economics/video/taxpayers-may-hit-fuhgeddaboudit-point-with-liberal-plan%7E1215468.
If you are a small business owner, you should be aware that the current government is planning on implementing changes aimed at making the tax system more “fair.” However, their short sighted plan has failed to realize two critical things: a) a significant portion of the population earns their income from small businesses (either as owners, employees, or shareholders) and b) owning a small business is not the same as working as an employee for the Government of Canada. This new tax plan is will eliminate the few remaining benefits to owning a business; and if there is no benefit to owning a business versus working as an employee, why would anyone take the risk of starting a business???
The proposed changes would see the end of income sprinkling, see income conversion into capital gains severely curtailed, and limit the types of investments (such as holding real property) that a business could make.
Concerned that this may effect you? Contact us today!