Important Changes Proposed for the taxation of Canadian Private Corporations

          On July 18, 2017, the Canadian Federal Finance Minister, Bill Morneau, announced the release of a consultation paper and draft legislation with respect to the taxation of Canadian Private Corporations. If the legislation is enacted, the amendments will have an intense impact on the taxation of private corporations and business structures that Canadian business owners have had for many years. The Government’s proposal targets on the following: Income Splitting Lifetime Capital Gains Exemption Passive Investment Income Converting income into capital gains Income Splitting:           It is not unusual for the business owners to structure their business with family members by allowing them to hold shares of the corporation directly or through a family trust. Under this structure, family members or the family trust often hold different classes of shares which allow for dividends to be paid to [...]