Taxes: Ottawa backtracks
Feds take a “step in the right direction”
Source: Investment Executive
Author: Rudy Mezzetta
The federal government provided considerable relief to small-business owners last month when it announced it would be backtracking on several elements in its raft of proposed changes in taxing private corporations. Those proposals were initially released this past summer.
Faced with a fierce backlash from the small-business sector, Ottawa softened some of its original proposed changes, jettisoned others outright and announced that the small-business tax rate would be lowered.
Jamie Golombek, managing director of tax and estate planning with Canadian Imperial Bank of Commerce’s wealth strategies group in Toronto, calls the series of announcements regarding private corporation taxation that the government made in mid-October “a step in the right direction.”
Small-business owners aren’t out of the woods yet, though. Ottawa indicated that it remained committed to limiting certain tax advantages associated with the use of private corporations, focusing on those the government believes give an unfair tax advantage to wealthy Canadians.