On July 18, the Minister of Finance announced his intention to close some tax loopholes that allow wealthy Canadians to avoid higher tax rates. The proposed measures include closing the loophole of business owners “sprinkling” their total income among family members who sit in lower income tax brackets but don’t actually work for the company, taxpayers using private corporations as a substitute for a regular savings account and taxpayers converting a private corporation’s regular income into capital gains. The government is launching a 75-day public consultation on the proposed measures.
Conservatives agree that Canada’s tax system should be fair; however we are concerned that the proposed changes may negatively impact hardworking small and medium-sized business owners who play by the rules and create jobs in their communities.
- We fully agree that the tax system should be fair and equitable for all.
- Conservatives support policies that reduce the tax burden for small and medium-sized businesses, reduce government red tape and allow entrepreneurs to create jobs in their communities.
- We will be participating in the consultation process to ensure that the voices of hardworking small and medium-sized business owners are heard.
- We know that Liberal tax hikes (higher small business tax rates, increased payroll taxes and a new carbon tax) are making it more difficult for entrepreneurs to maintain and grow their businesses.
- We know Justin Trudeau’s position on small and medium-sized businesses. During the election campaign, Trudeau stated that a “significant proportion” of small businesses serve as a screen for wealthy Canadians who want to avoid paying taxes.
Canadians concerned about the fairness of Canada's income tax system—are encouraged to share their views and ideas about the proposals to address the tax planning strategies discussed in this paper.
I ask that you tell Finance Minister Morneau and Prime Minister Trudeau that you oppose these changes. Written comments should be sent to: fin.consultation.fin@canada.ca. The closing date for submission is October 2, 2017. For more information please visit: https://www.fin.gc.ca/activty/consult/tppc-pfsp-eng.asp
|