If your business is incorporated, then you could be facing a larger tax bill and big compliance costs from the government’s new proposals to change the way corporations are taxed. Here are three things you need to know about the tax changes proposed by the federal government:
- Do you employ family members? The government wants to scrutinize their compensation to apply a much higher tax rate on income they consider “unreasonable”.
- Do you invest the profits from your business? The federal government is proposing to tax that income at an effective rate of 70%.
- Do you want to pass your business on to your children? Tough new rules make it difficult for younger children to get the capital gains exemption. They could be double-taxed.
Small and medium-sized businesses (SMEs) are the engine of the Canadian economy – estimates range from 85 to 90% of all businesses in Canada are SMEs.
The chamber network across Canada, including Brampton Board of Trade, is using its collective voice on this issue. Your voice as a business person is important too. But the window of opportunity is closing — the Liberal and Conservative caucuses meet immediately after Labour Day and we want to have MPs go to the meetings with businesses’ comments in hand.
BBOT is inviting all members to contact their local MPs immediately by phone or email so that the government better understands the impact this tax reform will have on businesses of all sizes.