The Department of Finance Canada is considering major changes to how corporations are taxed. The proposed rules could have a significant impact on many Canadian businesses – potentially raising taxes, increasing the administrative burden on SMEs and heightening the impact on family-run businesses.
“As the voice of more than 400 member businesses in this region, we are engaged in advocacy efforts to express our members’ concerns directly to the federal government,” said Chamber president Alex Stevenson.
The Chamber has fielded a number of inquiries from concerned businesses, uncertain of the implications of the proposed changes and joins an intensive national lobbying effort by the Canadian Chamber of Commerce representing 20,000 Canadian businesses.
Stevenson and executive director Sherry Martell met with Cumberland-Colchester MP Bill Casey recently to share concerns expressed by local businesses. The Chamber has also spoken with industry advocates with similar concerns.
The tax changes are aimed at three areas: income sprinkling, which allows business owners to lower their tax rate by splitting income with family members in lower tax brackets; Capital gains, targeting people who claim regular business income as capital gains which are taxed at a lower rate; and passive income, limiting so-called “passive investment income” which involves removing cash from a business to invest in things such as real estate, rather than reinvesting in the company.
This Wednesday, Sept. 13 the chamber will be hosting a lunch session with Greg Mosher, senior accountant at MNP LLP, to help businesses potentially affected by the proposed changes understand the impact on their operations. This event is open to anyone, both members and non-members, and will be held at the Holiday Inn, beginning at noon.
Pre-registration is required. The cost is $20 for members plus HST and $25 for non-members. For more information or to reserve a seat, call 902-895-6328 or email email@example.com