Tax Changes That Could Affect Your Small Business

Are you a business owner?

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.

Click here for an overview of the changes.

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.

Send a message to your MP today. Government needs to know that this tax reform will harm businesses of all sizes. Click here for a sample letter.

Jamie Schmale, MP Haliburton-Kawartha Lakes-Brock
68 McLaughlin Road.
Lindsay, Ontario
K9V 6B5

Telephone: 705-324-2400
Toll Free: 1-866-688-9881
Fax: 705-324-0880
E-mail:Jamie.Schmale@parl.gc.ca

Click here to read the press release from Jamie Schmale on the changes.

One comment

  • William

    I am so happy to see/hear that Someone is Finally looking at changing/INFORCING Tax Laws!
    I was a realtor several yrs ago and saw 1st hand realtors selling homes and putting their spouses name on the sales agreement… even though their spouses had never been involved in anything dealing with real estate.
    I am retired now and when my wife and I purchased a house sure enough the sales agent had put his wife’s name on the contract… We had NEVER met her, NEVER even knew the agent was married.. Makes me SOOOOO mad.
    One of the agents told me “Oh, the government is going towards income splitting anyway” I think this is Fraudulent unless income splitting is allowed for ALL citizens!

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