Feigenbaum Law

capital gains

MLI

Corporate Tax Planning

Canadian Government Announces Revised Income Splitting Rules

Last week, Canada’s Department of Finance released revised draft legislation, accompanied by a guidance document, intended to simplify the income sprinkling proposals initially introduced in July 2017. Concurrently, the Canada Revenue Agency (CRA) provided its own guidance on how it plans to implement and enforce the newly revised rules. The new legislation will apply as of January 1, 2018. As we previously blogged about, the original proposals were met with opposition and… Read More

MLI

Corporate Tax Planning

Canada’s Department of Finance Backtracks on Controversial Elements of Recent Tax Proposals

Earlier this year, we blogged about the federal government’s proposed tax changes. This week, the Department of Finance Canada clarified some aspects of the proposed measures, including providing more information about some of the most contentious elements of the tax-reform plan. The news came in the wake of significant public outcry and anger across the country, particularly from small business owners. The Modified Passive Income Proposal Finance Minister Bill Morneau clarified that… Read More

Tax changes

Personal Tax Planning

Canadian Business Owners Outraged by Ottawa’s Proposed Tax Changes

In July, the Finance Minister announced proposed tax changes that, if passed, will affect private corporations.  The stated purpose of the changes is to crack down on individuals using corporations to pay less taxes. Following the announcement, the Minister launched a 75-day consultation period on three proposed changes: Restrictions on “income splitting” (i.e. business owners shifting a portion of income to family members through salary or dividends); Curtailing “passive investment income” (i.e. Read More