1-877-940-7377
derrick@abilitypcg.com | margareth@abilitypcg.com
Client Login
Ability Private Client Group
  • HOME
  • ABOUT
    • PRIVACY & WEBSITE TERMS OF USE
  • SERVICES
    • LIFE STAGES
      • STARTING YOUR CAREER
      • GROWING FAMILIES
      • MATURE FAMILIES
      • PREPARING FOR RETIREMENT
      • RETIREES
    • BUSINESS STAGES
      • GROUP BENEFITS
      • EXECUTIVE BENEFITS
      • BUSINESS SUCCESSION
    • ACCESSIBLE PLANNING
    • HEALTH & DENTAL INSURANCE
    • CRITICAL ILLNESS INSURANCE
    • TRAVEL INSURANCE
    • PERSONAL HEALTH INSURANCE
  • CLIENT LOGIN
  • LATEST NEWS
  • CONTACT
  • DOWNLOAD OUR APP

Updated Small Business Tax Reforms

October 30, 2017Blog, Business Owners, corporate, TaxAbility Private Wealth

It has certainly been a busy week in terms of announcements regarding financial policies for small businesses. Following the series of proposed tax reforms that the government announced back in July, various tweaks and changes have subsequently been made, owing, perhaps in part, to confusion and frustration expressed among the small business community. This week Finance Minister, Bill Morneau, has made further clarifications and adjustments to his original set of proposals, aiming to bring more of a sense of balance to the plans. Like all policy changes, the detail can be a little overwhelming, so here is a summary of the key points for your reference: 

  • The government intends to honor a commitment made prior to the election, to reduce the small business tax rate from 10.5% to 9% by the year 2019. 
  • Morneau confirmed that the government has scrapped the proposal to limit access to the Lifetime Capital Gains Exemption. 
  • The plans announced earlier in the year to reduce the value of passive investments made by corporations will continue in principle, but with few key changes. There will be a threshold of $50,000 of income per year, which will be excluded from the newly set higher rate of tax. 
  • The government has agreed to “simplify” the rules related to the new plans, to prevent income splitting for family members, who are not active in a business, but the plan will still move ahead in principle. 
  • Morneau has confirmed that the government will still provide good entrepreneurial incentives for venture capitalists and angel investors. The criteria for which still needs to be established. 
  • The proposed rules to limit the conversion of income to capital gains have been abandoned due to the concerns that many related to intergenerational transfers and insurance policies were held inside corporations. 

Of course, this is one area of government policy which is not only constantly changing, but particularly controversial in the current climate, so keep yourself updated regularly on new announcements and news, to ensure your understanding in this area and its potential impact on your family and business. If you have any questions, please talk to us. 

Contact Us

Recent Posts

  • Government proposes including siblings in definition of ‘qualifying family member’ for RDSPs
  • Federal Budget 2023 Highlights
  • Ontario 2023 Budget Highlights
  • British Columbia 2023 Budget Highlights
  • TFSA versus RRSP – What you need to know to make the most of them in 2023

Categories

  • 2019 Only
  • 2020
  • 2020 Only
  • 2021
  • 2022
  • 2022 Only
  • 2023
  • Accountants
  • Blog
  • Budget
  • Budget 2017
  • Business Owners
  • Business Owners
  • Buy Sell
  • Charitable Gifting
  • Coronavirus
  • Coronavirus – Associates
  • Coronavirus – Practice Owners
  • Coronavirus – Retired
  • Coronavirus – Retiring
  • Coronavirus – Students
  • corporate
  • Critical Illness
  • Critical Illness Insurance
  • Debt
  • dental benefits
  • disability
  • Disability Insurance
  • education
  • Employees
  • Estate Planning
  • Families
  • Family
  • Finance
  • financial advice
  • Financial Planning
  • Group Benefits
  • Health
  • health benefits
  • incorporated professionals
  • Individuals
  • Insurance
  • Investment
  • Investments
  • Life Insurance
  • Long Term Care
  • mortgage
  • ODSP
  • Ontario Only
  • pension plan
  • personal finances
  • planning
  • Private Health Services Plan
  • Professional Corporations
  • RDSP
  • Registered Education Savings Plan
  • RESP
  • Retirees
  • Retirement
  • RRSP
  • Savings
  • Segregated Funds
  • Sole Proprietor
  • Tax
  • Tax Free Savings Account
  • Taxes
  • Travel Insurance

Contact Us

Derrick Lee-Shanok

derrick@abilitypcg.com

margareth@abilitypcg.com

416-875-1836

1-877-940-7377

416-860-7550

1500 Don Mills Rd. Suite 400 Toronto, ON M3B 3K4



Recent Articles

  • Government proposes including siblings in definition of ‘qualifying family member’ for RDSPs
  • Federal Budget 2023 Highlights
  • Ontario 2023 Budget Highlights
  • British Columbia 2023 Budget Highlights
  • TFSA versus RRSP – What you need to know to make the most of them in 2023

About

We believe in empowering our clients to participate in the creation and maintenance of their overall financial well being through proper education and ensuring an understanding of the possible outcomes involved in each decision.

Mutual funds, approved exempt market products and/or exchange traded funds are offered through Investia Financial Services Inc.

Privacy Policy

Insurance products are offered through PPI Management Inc., a national licensed insurance marketing organization that support independent advisors with their business, and through multiple insurance companies.

Privacy Policy

© 2016 Financial Tech Tools
Cleantalk Pixel