October 22, 2017

Meaningful Questions That Must Be Answered Before Tax Reform For Private Corporations Is Implemented

On July 18, 2017, the Department of Finance released tax proposals and draft legislation that obliterates the current system that has been used in Canada for decades. Rather than targeting the flaws, the government’s proposals amount to tax reform. By saying they are “closing loopholes” and ensuring payment of “fair share of tax,” it is the opinion of this tax lawyer that this language being used to describe these changes is purposely meant to persuade the public into believing that these changes are in their best interest and to keep critical thought about their implications to a minimum. Small- and medium-sized business are vital to our economy, and thus changes require at the very least adequate consideration and discussion before implementation.

Key Takeaways:

  • Questions that should be answered during tax reform efforts include but are not limited to: who will benefit, how should Canada’s small and medium-sized businesses be taxed, and how should private corporations be taxed?
  • In Canada, our tax systems aim to achieve integration. This means the tax rate of income, which travels through a business first, should be no more or no less than the rate that would apply if the individual had earned it directly.
  • Tax law and policy are too vital to the health of the country, to be tampered with in a hurried manner for unknown reasons and with unconsidered consequences.

“So far, the only answers our government has provided us with are those of the sort that mute public discourse and create unnecessary tension between members of the “middle class”. So far, the government has provided so little time for consultation that the “consultation” can only be inferred to be superficial. The public at large and our entrepreneurs deserve better.”

Read more: http://connorsstilwell.com/viewpoint-meaningful-questions-must-answered-tax-reform-private-corporations-implemented/

Ask Our Experts

Quadrant is dedicated to your financial success. Get expert advice and insights to grow your business and plan for your future.

Request a Consultation