Proposed Tax Changes -Are You Informed?
Posted On: 29/08/17 - 0

New Federal Tax Means Uncertainty For Small Business 

Tax burden is one of the biggest challenges your business faces. It could get worse with new tax changes proposed by the federal government. That’s why the  Canadian Federation of Business is encouraging the government to make the system more fair for small business owners like you.  

What This Means For Your Business

Firstly, the lower tax rate on the first $500,000 in corporate income has been important to the success of many small companies. But some big business groups and officials have called on the government to limit access to or completely eliminate the small business rate. In fact, despite an election promise to cut the tax rate, the government hasn’t done that. 

Most Businesses Are Overtaxed 

Secondly, changes are intended to make sure the richest Canadians pay their fair share of taxes. But the government forgets that the majority of business owners aren’t wealthy. There are already concerns over Canada Pension Plan and Employment Insurance rates increasing. Add to that concern,  minimum wage hikes in some provinces. And, don’t forget about the carbon tax.

Alarming Tax Changes Announced

Finally, the latest proposal was announced in July 2017. It wants to eliminate or minimize ways that business owners can save on taxes.  One of these includes sharing income with family members.  Or, saving passive investment income in your corporation. These measures are currently legal and are often used by many different businesses to reinvest in your business.  It’s getting harder to save for retirement as a business owner.

Potential Tax Threats to Your Business 

In conclusion, if you are concerned about your business and the possibility of a tax problem, contact CFIB today. Learn how your feedback can make a difference. 

One last thing, if you need an accountant to walk you through the tax changes, call us today.

 

 

12203-107 Avenue.
Edmonton, Alberta.
T5M 1Y9

Call us:
780.482.7297