Rule changes will have a significant impact on small business owners, the very people who are recognized for driving our economy.

On July 18, 2017 the federal government announced proposed tax changes which will have a significant impact on business owners. The main premise of the proposed changes is that the government feels it is unfair that an employed person with a T4 cannot do the same tax planning as a business owner; the proposed changes will limit what a business owner can do to save or defer tax.

Here is a list of the areas that are impacted from the proposed changes for business owners: income splitting, capital gains exemption, pipeline planning, and the investment of retained earnings.

These proposed rule changes are far reaching and will have a significant impact on small business owners/entrepreneurs, the very people often recognized for driving the economy and employment. The government has requested commentary from all stakeholders, but the consultation period is short – comments must be received by October 2, 2017.

Don Scott, FCPA, FCA is a Partner and the Director of Tax Services at Welch LLP in Ottawa and is an expert in the fields of business, corporate taxation and finance. He is an excellent speaker and is available to speak with media regarding this important topic. Simply click on Don’s icon to arrange an interview.

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