(Sept. 10/17) Restaurants Canada is fighting back against potential tax changes that could affect small business owners who created a private corporation. The Finance Minister’s proposal aims to prevent high-income earners from incorporating to lower their personal income taxes. However, these changes could affect restaurant entrepreneurs and their family members. Read more about the changes.
The Coalition for Small Business Tax Fairness
We’ve joined the Coalition for Small Business Tax Fairness – which now includes more than 40 associations – to ask that the proposals be revised or rejected.
Meeting with Ministry of Finance
We also met with officials from the Ministry of Finance to share our concerns with the proposal. Officials indicated that the following will stay the same:
Family members can continue to draw a salary for working in a family business.
The individual lifetime capital gains exemption remains as is. However, now only one shareholder per business can fully use the exemption. This means you can still sell your business and have some untaxed retirement money.
Officials are looking for guidance on passive income accumulation, and its effect on operators. The government has set up a 75-day consultation period to get feedback.
We will give our official submission by Oct. 2. To make it truly effective, we need your input.
Tell us how these proposed tax changes affect you in our 2-minute survey.