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Fair Tax Plan

Updates – November 2017

Updated Articles to Educate Yourself

Take Action

Pre October 2, 2017 Information

The Senate

Media Links

Sign an Online Petition

 

Updates – November 2017

Although some progress has been made by the Small Business and Tax Advisor Communities with respect to providing feedback to the Government about their July 18th Tax Proposals for Private Corporations, there is still much work to be done.

During the week of October 16th, 2 weeks after the October 2nd end date of the official Public Consultation Period for the July 18th Liberal Government Small Business Tax Proposals, our Country’s Finance Minister and Prime Minster made a series of announcements that included the Government’s plan to reinstate a 1.5% small business tax rate decrease (which will bring the small business combined tax rate in Ontario to 13.5% by January 1, 2019).  The government also announced plans to drop 2 of the 4 main proposals that were first part of the July 18th plan, namely their surplus stripping proposal (changing dividends to capital gains) and the proposals that would have limited the ability to use family members to multiply the small business capital gains exemption.  They announced that they will proceed with the other 2 proposals, double taxation of passive income invested in a small business corporation (the only detail here is that we’re told that there will be grandfathering of existing investments and there will be a new exemption of $50,000 of investment income that will be taxed under the current rules) and the Tax on Split Income rules that will limit the use of family members that are not active in a small business to pay dividends and effectively split income through a small family business.  It is anticipated that these rules will be tabled for legislation as part of the March 2018 Federal Budget.  Unfortunately, no additional information related to the details of the legislation is anticipated until that time.

Little to no detail has been provided to the public on the 2 proposals that the Government says will go ahead with.  No implementation dates have been updated regarding these 2 proposals.  So we are left to assume that the income sprinkling rule will still be implemented effective January 1, 2018 as originally proposed and we are left to assume that the passive income rule will be implemented effective the date of the March 2018 Federal Budget (the widely anticipated date of announcement for the framework of these rules).

The lack of transparency by the Government with respect to these rules makes planning for small businesses very difficult at the current time.  Nearly all of our corporate reorganizations for our clients are on hold until further clarity is available.  Unfortunately, uncertainty does not bread economic success, so the sooner Canada gets details on the tax proposals for private corporations, the better.

With that said, there is still potentially time and opportunity for the Canadian Public to provide meaningful feedback to our Government regarding these Proposals.  The Canadian Senate has assembled a Finance Committee and has tasked them to undertake a thorough review of the proposals.  As we originally identified on this web page, the Canadian Senate is the gate-keeper, so to speak, of the passage of Law in our country.  Before anything formally passes into Law, it has to go through the Senate.  Because of this, it is our opinion that providing well thought out feedback to the Canadian Senators on this subject is a worthwhile pursuit and may result in the Senate stopping any related legislation that we believe might be bad for our economy, our healthcare system and our Country.

Please find attached the email list of all Canadian Senators as well as a separate email list of the Senators that are serving on this specially assembled Finance Committee.  As well, our team at C&B has gone through another round of creative writing and from that we provide you with a number of templates that you can use to provide feedback to the Senators regarding these Tax Proposals as they are currently drafted.

We hope that this makes it easy for you to get engaged and to continue to reach out to our Government to lobby for True Tax Fairness which can only be achieved by the Government abandoning the current and any future iteration of the July 18th Tax Proposals on Canadian Controlled Private Corporations and start an honest and full review of the Canadian Tax System with the objective of Simplicity and Fairness.

We appreciate your continued support of our firm and look forward to serving you in the near future!

 

Sincerely,

 

The partners and staff of

Updated Articles to Educate Yourself

Letter to MP in Kingston, ON

Oct. 16, 2017 Trudeau Morneau Announcement

Charles Rotenberg Musings on Passive Investment Income Rules

Small Business Owners Not Letting The Feds Off The Hook Just Yet

Moodys Gartner Tax Proposals Update

Senate Finance Committee Meeting with Bill Morneau

Letter to the Senate Finance Committee

The government needs a new approach to income tax reform

Government is focusing on the wrong areas!

Canada needs to stop its war on Passive Investment

Pierre Poilievre asks Minister Morneau questions about the Budget and Passive Income Rules – Must See Video

Letter from Brian Bloom, former legislative draftsman for the Department of Finance

Unfairness of Passive Income Rules

Renewed Call to Action

List of all 105 Senate Emails which can be directly cut and paste into your email client.

Template for Senate – Nov 2017

List of of all 336 Members of Parliament Emails which can be directly cut and paste into your email client.

 

Updates Pre October 2, 2017

The documents and articles found below relate to C&B’s efforts to educate and call to action our friends, associates and clients to provide feedback to the Government during the official consultation period related to the July 18th, 2017 Proposals.  The official consultation period ended October 2nd, 2017.

Letter from Chaggares and Bonhomme CPA to Clients

This letter was prepared by the partners at Chaggares & Bonhomme CPA and sent out to their clients on August 10th, 2017. It took the partners four weeks to absorb and understand the implications of this proposed legislation on its many small busines s clients.

Fair Tax Plan Letter to Clients

Letter from Chaggares and Bonhomme CPA to Finance Minister

Letter to Finance Minister

Articles to Educate Yourself

Is a 93% Tax Rate Fair to Canadian Small Business Owners?

STEP response to tax proposals

Private corporation tax proposals unquestionably harm “middle-class” business owners

Government lies and half truths about the Tax Reform

Tax Changes will Encourage Doctors to Leave

 

Take Action

Click here to email the ministry of finance

List of of all 336 Members of Parliament Emails which can be directly cut and paste into your email client.

Template 1

Template 2

Template 3

Template 4

Template 5

List of all 105 Senate Emails which can be directly cut and paste into your email client.

Template for Senate

 

About The Senate

From sencanada.ca The purpose of The Senate is as follows:

The Senate is the Upper House in Canada’s bicameral parliamentary democracy. It unites a diverse group of accomplished Canadians in service of their country.

Parliament’s 105 senators shape Canada’s future. Senators scrutinize legislation, suggest improvements and fix mistakes. When the Senate speaks, the House of Commons listens — a bill must pass the Senate before it can become law.

Senators also propose their own bills and generate debate about issues of national importance in the collegial environment of the Senate Chamber, where ideas are debated on their merit.

Created to counterbalance representation by population in the House of Commons, the Senate has evolved from defending regional interests to giving voice to underrepresented groups like Indigenous peoples, visible minorities and women.

The partners and staff of Chaggares & Bonhomme are incredibly worried that the liberal government is going to pass the proposed legislation as it is currently written without consideration to the extensive feedback that has been provided and is being provided by the Canadian tax community. If this happens, our little understood Canadian senate will become of paramount importance. They are the backstop who protect Canadians from poorly drafted or ill advised legislation. Please reach out to all of the senators in the attached list using one of the above templates in order to ensure that they understand the importance of the issue and the will of the Canadian public.

Sign an Online Petition

Petition Directly to House of Commons

Extend consultation for proposed changes to private corporation taxation – 7/18/17

Stop Unfair Tax Changes: Access to Canada’s Health Care Threatened

Canadian Female Physicians Urge Federal Liberals: Reverse Proposed Changes To Corporations