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All items tagged with: Liberal government

Anything But Simple: Morneau’s Income Sprinkling Rules Start January 1

Posted: December 19, 2017 By: Evelyn Jacks
Posted in: Strategic Thinking , Financial Literacy, CRA, capital gains, knowledge bureau, Evelyn Jacks, family business, retirement planning, investment income, tax courses, financial advisors, retirement income, wealth management, tax changes, income splitting, tax advisors, financial education, tax reform, small business tax, Liberal government, Canadian income tax, Morneau, income sprinkling, family tax credits, reasonableness test, capital contribution, private corporation tax, incorporated business

It’s official, family income sprinkling rules will take effect January 1, 2018, and, unless a family member can show active participation under still-complicated reasonableness tests, distributions of income from private family businesses will be taxed at top tax rates, with none of the progressivity in tax rates available to individuals. This will require an immediate rethinking of resources available to the economic unit known as the family business.

Special Report on Taxation of Passive Income in Private Corporations

Posted: November 28, 2017 By: Evelyn Jacks
Posted in: Strategic Thinking , Tax Planning, Financial Literacy, Federal Government, knowledge bureau, financial education, tax reform, small business tax, tax proposals, Liberal government, Morneau, Minister of Finance, passive investment, Parliamentary Budget Office, PBO, corporate investment income, tax consultations, tax courses Evelyn Jacks

The tax take is much more significant than first thought. The Parliamentary Budget Officer (PBO) released a report on November 23, 2017, that suggests the revenue increase from proposed new taxes on passive income earned in a small business corporation will be as high as $6 Billion dollars annually by the time the full effects of the changes are implemented. This is much more than the initial $250 Million figure first suggested by the Department of Finance, and still only a best guess.

People in the News: Reader Comments on Tax Reform

Posted: November 28, 2017 By : Knowledge Bureau Staff
Posted in: Strategic Thinking , knowledge bureau, Evelyn Jacks, income tax, tax courses, tax changes, tax education, finance canada, tax reform, tax proposals, Liberal government, Morneau, unfair tax changes, small business taxation, Klaus Theyer

At Knowledge Bureau, we love to receive feedback from our readers. Klaus Theyer of Exact Tax Services commented on thought leadership about recent federal tax changes.  Here’s what he said:

Analysis of Tax Reforms to Passive Investment Income

Posted: November 21, 2017 By : Knowledge Bureau Staff
Posted in: Strategic Thinking , Tax Planning, Financial Literacy, Federal Government, knowledge bureau, Evelyn Jacks, tax courses, financial education, tax reform, small business tax, tax proposals, Liberal government, Morneau, Minister of Finance, passive investment, Parliamentary Budget Office, PBO, corporate investment income, tax consultations

Breaking news from Ottawa: The Parliamentary Budget Officer (PBO to follow-up on The Minister of Finance’s July 18 proposals, releasing a new report on November 23.

Critical Financial Education on Family Business Tax at November CE Summits

Posted: November 14, 2017 By : Knowledge Bureau Staff
Posted in: Strategic Thinking , CRA, knowledge bureau, Evelyn Jacks, tax courses, financial advisors, ce credits, year-end tax planning, financial education, tax preparers, CE summits, tax proposals, Liberal government, Larry Frostiak, Morneau, taxation of private corporations, tax issues, small business taxation, financial workshops, passive income taxation, corporate valuation, Frostiak and Leslie Chartered Accountants

The tax proposals introduced on July 18, 2017, are complex and continue to evolve, promising some mind-numbing complexing for business clients. Tax and financial advisors need to gain a thorough understanding of the intricacies of these proposals in order to reduce the impact on their clients. The November CE Summits will address this need, in a focused session featuring family business tax expert Larry Frostiak. Note - Registration ends today, November 15.

Fall Economic Statement: Low Earners Benefit from Strong Economy

Posted: October 24, 2017 By: Walter Harder
Posted in: Strategic Thinking , taxation, knowledge bureau, Evelyn Jacks, Small Business, tax courses, tax changes, financial education, tax reform, entrepreneur, Liberal government, Fall Economic Statement, Finance Department, Canada Child Benefit, Working Income Tax Benefit, 2018 Federal Budget, Moreneau

On October 24, 2017, Finance Canada issued the Fall Economic Statement, which forecasts better-than-expected economic growth, at least in the shorter term.  The resulting increase in tax revenues have blessed the department with new funds for spending priorities; notably to help families with children and the working poor.