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Email this7:36 pm
January 25, 2016
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The 2017 federal budget is two months behind us (with no changes to capital gains rate), but here is Bill Morneau hinting that "rich" persons and small businesses may in for a surprise come March 2018, and will have to "pay their fair share": http://www.fin.gc.ca/news-nouv.....25-eng.asp
Low interest rate environment + higher taxes + flat wage growth + huge government deficit + growing personal debt levels + growing inflation = what will become of Canada and Canadians? 
7:15 am
April 6, 2013
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It is not the rich and small businesses that are targeted.
It is those taxpayers who are using private corporations to reduce taxes by income sprinkling, by applying lower corporate tax rates intended for active business income to passive investment income, and by converting regular corporate income into capital gains.
8:09 am
October 27, 2013
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I support the gov't going after this leakage. It does not serve Canada well. The worry about the third category is whether they would also consider tinkering with the 50% inclusion rate on investment capital gains. Capital investment is what makes free markets function and provides a key tailwind for GDP growth.
9:16 am
September 11, 2013
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Income sprinkling is not just done via private corporations, unincorporated businesses do the same. Just one example: government (via CRA) looks the other way when doctors income split by paying their spouses to do "office work" because it's a way of enriching doctors - whose services, after all, keep politicians, bureaucrats and the rest of us alive longer.
9:24 am
April 6, 2013
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The federal government may not have a need to change the current 50% capital gains inclusion rate.
I think it will depend on how much clamping down on the corporate income sprinkling and income-to-capital-gains conversions brings in.
There are already rules in place to deny passive corporate investment income the lower tax rates for active business income. Perhaps, it is just more corporate tax audits that are needed to ensure the rules are being followed.
7:17 pm
May 21, 2016
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The same old political rhetoric of loop holes in the tax system..and I'd love to hear details on these tax plans that convert business income into a capital income overnight without being considered tax evasion.
If the Minister wants to create a plan then he should focus on a plan to attract more capital into Canada and discourage the outflow when the US corporate tax rate drops from approx 36% to 25% (to match the Canadian manufacturer corp rate of 25%). With equal corporate rates and southern state wage rates at $7.25 per hour (assuming fed min rate did not change this year), who would want to invest in Canada?
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