Concerns over small-business tax changes
"Doctors and Lawyers who run their own practices are anxiously waiting for more details on Prime Minister Justin Trudeau's plan to change tax rules for small businesses"...
The Globe and Mail, November 2015 Read the article
"Uncertainty looms for small-business owners as Ottawa rolls out tax reforms. Professionals and other small business owners are bracing for Ottawa's next move to target Canada's top 1 per cent as the federal Liberals signal more is to come"...
The Globe and Mail, December 2015 Read the article
The Federal Government has introduced some legislation to lower the middle class tax bracket, add an additional personal tax bracket for income over $220,000 to 53.8% in Ontario and rolling back the TFSA to $5,500 with an inflation adjustment in the future. All of these changes are targeted to be effective January 1, 2016.
Historically, the benefit of owning a small business has always been tax rate differential ranging from 23% in 2002 to 31.5% today. This lower tax rate has been an advantage for several of our clients who have their own companies. This differential in tax rate is to allow business owners help finance growth within their companies such as working capital and capital assets.
Trudeau believes that "a large percentage of small businesses are actually just ways for wealthier Canadians to save on their taxes".
Now more then ever before is the time for small-business owners to review their structure, finances, investments and insurance protection. We can help you with this today!