Millards Chartered Professional Accountants is co-hosting a Town Hall Meeting with Brant MP Phil McColeman and Chamber of Commerce Brantford-Brant to explain the proposed Federal Tax Changes. The meeting on September 25th at the Best Western Brant Park Inn is an opportunity to learn about the new tax proposal as well as share your feedback with our local Member Of Parliament.
Tony Araujo, President of the Board of Directors at the Chamber of Commerce Brantford-Brant says that business people should be aware of the implications of the proposed changes as well as voice their concerns.
“Small and medium-sized businesses are the engine of the Canadian economy. Federal tax changes could prove costly for business and so we’re encouraging area business representatives to join us to learn as well as be heard.”
The proposed tax changes first announced by the government back in July have received harsh criticism from the Conservative Party and small business owners.
Prime Minister Justin Trudeau contends that the new tax plan will address “unfair tax advantages” but some see the changes as onerousness.
Millards Chartered Professional Accountants will provide an overview of the proposed changes and Millards’ Associate Lynda Sinclair, CPA, CA will be there to detail how these changes will affect your business.
“While the government has indicated the changes should only affect the 1%, our review of the proposals indicates that the vast majority of incorporated business owners will be affected, regardless of overall wealth. If you have a family trust, if you have an estate plan, if you have an existing business with family members, these tax changes will touch you in some way”
Sinclair says that while it’s unlikely that the government will make significant changes to the drafted proposals, the majority of the rules are not fully developed and a unified opposition could influence revisions.
“We’re in a 75 day consultation period now and the public is encouraged to make informed comments. We believe that these proposed tax changes will impact many of our clients and understanding and providing feedback to the government on these changes could be important in the determination of the final enacted rules.”
The tax plan takes on three main areas. All three could have dramatic impact on small business owners and entrepreneurs.
Income sprinkling gives business owners the ability to lower their tax rate by splitting their income with other family members that fall into lower tax brackets.
Another proposed change will target people who claim regular business income as a capital gains benefit so they can be taxed at a lower rate. These rules are intended to target “surplus stripping” or the conversion of taxable dividends to tax free, or preferentially taxed capital gains.
Business owners have been able to take cash out of a business to invest in things other than reinvesting it in the company. The government is also proposing a limitation to “passive investment income.”
Do you employ family members? Do you invest the profits from your business? Do you want to pass your business on to your children?
If you answer yes to any of those questions, you should attend our Town Hall Meeting on September 25th at the Best Western Brant Park Inn to learn the details and discuss your concerns with Brant MP Phil McColeman.
To register please email Tara King at firstname.lastname@example.org