October 16, 2017
On October 16, 2017 the government provided an update to the Private company tax proposals. The following was announced:
The federal small business tax rate will be reduced to 10% from 10.5% effective January 1, 2018 and to 9% effective January 1, 2019.
The income sprinkling proposals will be moving ahead effective January 1, 2018. Apparently these proposals will be simplified to reduce the compliance burden to establish reasonableness but no details were given.
The changes to limit access to the Lifetime Capital Gains Exemption ("LCGE") will NOT be moving ahead.
There will be more announcements later this week to address other parts of the proposals in the consultation paper. Changes to draft legislation will not be released until later this fall.
Below is a link to the government’s news release and backgrounders that came out today.
We encourage you to read all four document links under the ‘Related Products’ section.