27 Jul Tax Changes for Small Business in Canada
I am going to share the lead article for the summer with Bilal, because the second half of this editorial is an article he published early last week, as I was returning from vacation. Bilal offers a summary and link to the Department of Finance consultation paper that details the current thought pattern for the government.
After its release, he and I had a great conversation about the importance of this document. It could impact a number of our clients and their businesses, so it is of great interest to us, as practitioners.
The accountants’ roll in tax planning is to support a client paying the lowest possible taxation, when measured against the cost analysis of preparation. It is our job to understand the planning implications of taxation in the life of our clients and their businesses.
The next three months could be busy ones as we work to voice thoughts and opinions in order to influence the direction the government takes in structuring future tax policy.
For example, you may have heard that small business pays a lower tax rate. That is true, but it is not to shelter the rich from taxation. That is not the purpose of the act. Small businesses need to finance operations and grow their business. Government policy was established to allow them to retain moneys in the corporation to permit the financing of growth. Small businesses cannot borrow money as cheaply as large public companies that have ready access to cash. As a result, the government has created this policy to allow them a fairer playing field.
Is this going to impact you? Would you like to have your voice heard? Would you like to engage in a dialogue? If so, please drop me a line and help us communicate your needs and concerns over the period between now and October 2, 2017.
What follows is the original article from Bilal.
Today in Ottawa, the Minister of Finance, Bill Morneau, held a press conference discussing the Liberal government’s proposed plan to implement changes to the taxation of private corporations and the impact to business owners. The Department of Finance has released a consultation paper that details the proposed changes.
This report stems from the government’s concerns over three tax planning and tax reduction strategies used by private companies and their owners…Read more here.