North Coast Business Community | URGENT MEMO RE GOV’T TAX OVERHAUL: BUSINESS ALERT
Are you a business owner? This is an urgent message for you.
If your business is incorporated, then you could be facing a larger tax bill and big compliance costs from the government’s new proposals to change the way corporations are taxed.
Here are three things you need to know about the tax changes proposed by the federal government:
1. Do you employ family members? The government wants to scrutinize their compensation to apply a much higher tax rate on income they consider “unreasonable”.
2. Do you invest the profits from your business? The federal government is proposing to tax that income at an effective rate of 70%.
3. Do you want to pass your business on to your children? Tough new rules make it difficult for younger kids to get the capital gains exemption. They could be double-taxed.
Small and medium-sized businesses (SMEs) are the engine of the Canadian economy – estimates range from 85 to 90% of all businesses in Canada are SMEs.
The chamber network across Canada is using its collective voice on this issue; your voice as a business person needs to be heard as part of this initiative. And the earlier the better. The Liberal and Conservative caucuses meet immediately after Labour Day and we are aiming to have MPs go to the meetings with our businesses’ comments in hand.
Send a message to the Minister of Finance and your MP today. Government needs to know that this tax reform will harm businesses of all sizes.
Send your comments to:
Minister of Finance
The Honourable William Francis Morneau
Department of Finance Canada
90 Elgin Street
Ottawa, Ontario K1A 0G5
Member of Parliament
818 3rd Avenue West
Prince Rupert, British Columbia