The Government of Canada has proposed tax changes for private corporations. On July 18, 2017, the Minister of Finance released proposals for Improving Fairness in the Tax System. The changes announced were intended to target the wealthiest of Canadians by addressing three areas of tax planning in private corporations:
• Income sprinkling with family members who receive allocations perceived to be in excess of their contributions to the growth of the business;
• Using lower corporate tax rates to accelerate investment growth by shareholders of private corporations; and
• Conversion of dividend income into lower rate capital gains.
Read more from AFPA Member MNP on what this tax change means to food processing businesses.