This is clearly a very unpopular idea and for good reason. The very fact that someone in the government thought this was a practical way to raise a tax is short-sighted. The comments above are all excellent comments. Small business needs more breaks, not fewer. This is what keeps the Canadian economy alive, vibrant, and equitable.
By Sandra Gibbs on August 17, 2017
This out of touch Liberal Government led by the worst Prime Minister since Pierre, is set to ruin our Country. Hugh deficits will continue until they are booted out. They are on the path of increasing taxes to everyone and the subject of passive income in small corporations is no exception. While the US reduces taxes to their citizens, these stupid Liberals are going to drive our economy into the ground. Just this week the jugheads have announced a gift of our tax money in the amount of $20 million to the Clinton Foundation. This is one of the most despicable foundations in the world led by the most dangerous and corrupt criminals in the Washington swamp.
By M MacDonald on August 16, 2017
Small business owners do not get a typical pension like those working for an organization. After small business owners retire, passive investment income is their way of provide a pension to themselves. Taxing them at the highest personal tax rate is simply unconscionable.
By David on August 16, 2017
We that are in small businesses in BC see this as another tax grab by a government that is spending and spending. We do try to keep money aside in the business as replacing necessary equipment is very expensive. We are already paying every month on last years profit but this year is a bad year for businesses so that inactive income pays Revenue Canada again. The big problem here is that there are less and less tax payers and there will be more as small business close. We have fewer property tax payers as well in BC with Farm Status for 2 acres and over.
By Leanor Davidson on August 16, 2017
Seems little thought has been given to Holding Companies. Are they going to be taxed at the highest personal tax rates? After all, this is a convenient legally sheltered from creditors CCPC, of excess funds, ” parked ” until further notice. If they are going to be treated differently than active CCPC’s, this could be a tactic by the Federal government, for Lawyers and Accountants to get on the band wagon and incorporate thousands of new Holding Companies, to avoid the new, proposed tax changes on passive income. Throwing them a bone for the loss of some of their ” Personal Corporation” tax loopholes.
By Ken on August 16, 2017
There are so many reasons these proposed changes should be viewed with horror by Canadians. Small business is the central employer in our economy and this would fundamentally alter the landscape for those businesses. There are many Canadians that have built their retirement around their CCPC. It would be terribly unfair to make changes now that would permanently lower their standard of living.
By Terry on August 16, 2017
This policy change would be a money maker for bookkeepers and accountants, which in itself is not a taxpayer-friendly move, due to all the extra and new record-keeping necessary to track which funds would be subject to which tax rates. This would naturally increase the chances for errors, and essentially disable the small business person from either understanding, or being able to keep track of, their own tax position with any confidence. It seems like a way for the Trudeau Liberals to attempt to tax all the passive savings currently held by CCPCs, and thus, is a signal that this government is desperately looking for more revenue to fund their out-of-control spending. It’s not only bad policy for taxpayers, but has to potential to do untold damage to small businesses, which are the backbone of the Canadian economy.
By Lori on August 16, 2017
Just another ill-thought out tax grab by the Liberals.
By Robert Lamb on August 16, 2017
This will have a detrimental effect on the Small Business owner where many of them al already struggling. It could mean the end of some businesses.
By Doug Northrup on August 16, 2017
It’s a totally political move aimed at people who have no idea what goes on in business; the risks, the limited rewards prior to success and the need more often than not to finance expansion or even cash-flow from the proceeds of the passive investments that were placed there by the business owner(s). Another dumb Liberal move.
By Alan Caplan on August 16, 2017
We take the risk as small business owners. The benefits are few and far between. These new measures would be terrible.
By Craig McConnell on August 16, 2017
Already taxed when the funds do come out to personal hands.. with this move to get the tax money now rather than in the future does it mean more changes to come, away from integration, but to double taxation…?
By Clare on August 11, 2017
All Income earned within a corporation should be taxed at the prevailing corporate rates not at any personal rates, much less the top personal rates. Measures like that only encourage tax evasion. Simply disgraceful.
By Patrick on August 09, 2017
It depends on the details of the policy
By dilip on August 09, 2017
Small business corporations should be supported, but this measure will force some corporations to be closed.
By Irina Glazounova on August 09, 2017