You have no doubt heard about changes the federal government intends to make to tax on corporately owned businesses. If you own an incorporated business, you could be facing a larger tax bill and big compliance costs from the government’s new proposals to change the way corporations and their shareholders are taxed.
Here are three things you need to know about the tax changes proposed by the federal government:
- Do you pay family members? The government wants to scrutinize their compensation including both wages and dividends 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 the next generation to get access to the capital gains exemption and receive dividends in the future at a reasonable tax rate. They could be double-taxed and your estate plan could be no longer effective.
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.
This is an issue where the power of the Chamber Network across the country can affect change if we all work together and use our voice, the voice of business. Your voice as a business person needs to be heard as part of this initiative.
Send a message to your MP today. Government needs to know that this tax reform will harm businesses of all sizes. A template letter is provided below to get you started but we encourage you to add your own story as to how this legislation may affect you and your business.
The Government is only accepting submissions for these changes until October 2, 2017
Click below for:
- “5MinsforBiz” – an overview of the proposed changes and how they may affect business prepared by the Canadian Chamber of Commerce.
- A Template Letter – into which we hope members will supply their own stories and then send them to their appropriate Member of Parliament. For Nanaimo-Ladysmith send to: MP Sheila Malcolmson, 495 Dunsmuir Street, Suite 103, Nanaimo, BC, V9R 6B9. Email: Sheila.Malcolmson@parl.gc.ca
The Ladysmith Chamber of Commerce will be doing more over the next few weeks to add our voice to the opposition of this legislation. We will do our best to let you know of new developments or initiatives as they arise.
Ladysmith Chamber of Commerce