Tuesday, July 24, 2018

Is Your Private Company in Shape for New Tax Rules?

Owners of private companies in Canada may now face more restrictive tax rules. Canada recently enacted changes affecting private corporations, their owners and family members, including a new tax on split income (TOSI) where adult family members are part of income splitting arrangements, and restrictions on the small business deduction (SBD) where a private corporation in a corporate group earns passive investment income. These new tax measures, which were first proposed in July 2017, are now enacted and may present significant challenges for private corporations and their owners. As a result, we recommend that you revisit your tax affairs to ensure they are still effective in light of these changes, if you haven’t already done so.

To read this edition of TaxNewsFlash-Canada, go to: TaxNewsFlash-Canada.