On July 18, Finance Minister Bill Morneau unveiled plans to tighten what the federal government calls “unfair” loopholes for private corporations that enable many wealthy Canadians, including professionals like some lawyers, to reduce the amount of tax they pay.
In a series of 6 capsules, FL Fuller Landau’s Tax Partner Nick Moraitis gives his comments on the new federal measures targeting tax planning using private corporations, alongside FL Partner, Josh Miller.
Part 1 – Income Sprinkling
Part 2 – Capital Gains Exemption
Part 3 – Corporate Structure
Part 4 – Family Trusts
Part 5 – Incorporated Professionals
Part 6 – Investments within Private Holding Companies
For more details on the above measures, you can read the technical briefing issued by the Department of Finance Canada: http://www.fin.gc.ca/n17/data/tppc-pfsp-eng.pdf
Stakeholders, including the affected business communities, provincial and territorial governments, tax advisors, commentators and other Canadians concerned about the fairness of Canada’s income tax system, are encouraged to share their views and ideas about the proposals to address the tax planning strategies: http://www.fin.gc.ca/activty/consult/tppc-pfsp-eng.asp
The matters highlighted in this tax memo are presented in broad general terms and, of course, cannot be applied without consideration of all circumstances. The Firm will be pleased to discuss with recipients the possible effects of these matters in specific situations.