Resource Bulletin – Private Corporation Tax Changes: Government of Canada takes Canadian Small Business to the Cleaners

Corporation Taxation Bulletin by Saskatoon lawyer, Joseph A. Gill

On July 18, 2017, the federal government published its long-awaited (and long-dreaded in the tax community) white paper on changes to the taxation of private corporations in Canada (the “White Paper”) (available here, along with technical documents: http://www.fin.gc.ca/n17/17-066-eng.asp). The White Paper follows commitments noted in Budget 2017 which saw the Liberal Government (the “Government”) promising to fix so-called “tax loopholes” available to private corporation owners. The White Paper represents another “nail in the coffin” for small business tax incentives; combined with prior proposals, such as changes to the small business deduction rules, the tax system is looking to become vastly more complex (and costly) for small business owners.

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