March 5, 2018

LEGAL UPDATE – BUDGET 2018: FROM FIRE TO FRYING PAN

  Date: March 5, 2018 Author: Karen D. Stilwell Budget 2018 was released on February 27, 2018 and, with its release, came a degree of closure to the drama that unfolded following the July 18, 2017 announcement of a package of proposed changes to the taxation of Canadian private corporations and their shareholders. The changes as initially proposed threatened to both suddenly and fundamentally rearrange the framework that has defined the taxation of private corporations in Canada for decades. The mere announcement destabilized small and medium sized incorporated business and galvanized tax professionals across the country. All were duly stirred from summer slumber. Seven months have passed. In the intervening period the federal government has retreated significantly from its initial set of proposals. It did this first through a series of announcements during “Small Business Week” in October, 2017, indicating that certain of the more devastating proposed technical changes to the surplus stripping rules would be abandoned. Then, on December 13, 2017, revisions to the initial proposal for changes to the taxation of dividends received by family members from incorporated family business were published. Finally, last week, Budget 2018 set out the long awaited legislative changes to the taxation of […]
November 10, 2017

Congratulations Leading Edge Geomatics

Congratulations to our client, Leading Edge Geomatics, on its exciting new strategic partnership with Novacap! Read more here…
August 10, 2017

VIEWPOINT: MEANINGFUL QUESTIONS THAT MUST BE ANSWERED BEFORE TAX REFORM FOR PRIVATE CORPORATIONS IS IMPLEMENTED

On August 1, 2017, Connors Stilwell published a legal update for our clients explaining the impact on private corporations and their shareholders of the July 18, 2017 tax proposals released by the Department of Finance. A copy may be found here. 1 Now, we provide our critical viewpoint. The Language of Loopholes The spring release of the federal budget is one of the most anticipated and important annual events for me as a tax lawyer. Each spring, the budget lays bare not only the government’s spending priorities, but it announces the government’s planned changes to the federal income tax regime. These changes routinely keep me and the tax profession at large on our toes as we strive to deliver knowledge and know-how to our clients about the Canadian taxation system. It is not an easy job, but it is one that I believe in and love. Budget 2017 was quiet from a tax law and policy perspective. Among the professionals I interact with on a regular basis, we noted how slim the budget was and how few tax changes were announced relative to recent years. I did not even flinch, but rather nodded in agreement, as I read this, promising […]
August 1, 2017

LEGAL UPDATE: TAX PROPOSALS AFFECTING PRIVATE CORPORATIONS

These are the dog days of summer, but while you may have been enjoying some well-earned sunshine and down-time, on July 18 the federal government released bombshell proposed amendments to the Income Tax Act that, if enacted, will fundamentally rearrange the system that has defined the taxation of private corporations and their shareholders in Canada for decades. Chief among the areas affected are the taxation of income split through family trusts and private company share structures, taxation of passive income earned by a corporation, and taxation of amounts extracted as capital gains rather than as dividends. The Department of Finance is accepting input from stakeholders during a consultation period that ends October 2, 2017. In the meantime, key aspects of the proposals in their current form have immediate effect as of July 18, 2017. As a result, we strongly recommend that any business owner operating through a private corporation or more elaborate corporate structure promptly reach out to a tax advisor to determine whether and how these proposals affect the taxation of income earned through the structure or the taxation of any current or proposed transactions involving a private corporation. Key Proposals: The Highlights Key among the proposed changes to […]
March 5, 2018

LEGAL UPDATE – BUDGET 2018: FROM FIRE TO FRYING PAN

  Date: March 5, 2018 Author: Karen D. Stilwell Budget 2018 was released on February 27, 2018 and, with its release, came a degree of closure to the drama that unfolded following the July 18, 2017 announcement of a package of proposed changes to the taxation of Canadian private corporations and their shareholders. The changes as initially proposed threatened to both suddenly and fundamentally rearrange the framework that has defined the taxation of private corporations in Canada for decades. The mere announcement destabilized small and medium sized incorporated business and galvanized tax professionals across the country. All were duly stirred from summer slumber. Seven months have passed. In the intervening period the federal government has retreated significantly from its initial set of proposals. It did this first through a series of announcements during “Small Business Week” in October, 2017, indicating that certain of the more devastating proposed technical changes to the surplus stripping rules would be abandoned. Then, on December 13, 2017, revisions to the initial proposal for changes to the taxation of dividends received by family members from incorporated family business were published. Finally, last week, Budget 2018 set out the long awaited legislative changes to the taxation of […]