On July 18, Finance Canada launched a consultation on how tax-planning strategies involving corporations are being used to gain unfair tax advantages. The document contains proposed policies to close these “loopholes.” The proposed changes represent the largest overhaul of the taxation of private corporations in Canada in approximately 40 years.
The changes are being met with public skepticism and scrutiny as they could significantly impact SMEs and family-run businesses. Owners need to be aware of four key changes. Read the summary here.