A Notice of Ways and Means Motion was published last October 24, 2017. Here are the highlights with regards to the tax changes for private corporations: Revision of Gross Up rate for non-eligible dividends: from 17% for 2017 to 16% for 2018 and 15% for 2019 and later years; Revision of the tax credit for non-eligible dividends: from 21-29ths of the gross-up in 2018 to 8/11ths in 2018 and 9-13ths in 2019 and later years; Increase the small business deduction: from 17.5% in 2017 to 18% for 2018 and to 19% for the 2019 and subsequent taxation years; Move forward on...
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Last week, the Department of Finance released its Fall Economic Statement where the Finance Minister highlighted its efforts to support families and the middle class.  Here are the proposals that the Finance Minister mentioned in his Fall Economic Statement speech: 1.    Strengthen the Canada Child Benefit.  Starting July 2018, the government will be making annual cost of living increases to the CCB which is 2 years ahead of schedule.  A single mother of two children making $35,000 will receive $560 in the 2019-20 benefit year towards the cost of raising her children.  2.    Enhance the Working Income Tax Benefit.  There will...
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Finance Minister Bill Morneau announced last October 18th of the Government’s intention to move forward with the tax changes albeit with a few tweaks here and there.  The Finance Minister focused on the tax changes to limit the tax deferral opportunities related to passive investments.  In his statement in New Brunswick, the Finance Minister said that the Government will ensure that a $50,000 threshold on passive income in a year which is equivalent to $1 million in savings based on a nominal 5% rate of return will be made available to provide more flexibility for business owners to hold savings for...
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The Federal Government recently announced that it intends to lower the small business tax rate in the next couple of years. Effective January 1, 2018, the small business tax rate will be lowered to 10% from 11%. And on January 1, 2019, it will go down further to 9%. Note that this small business tax rate applies to the first $500,000 of active business income. As a result of this change, Canada’s combined federal – provincial – territorial average tax rate for small business would be lowered from 14.4% to 12.9%. This average small business tax rate across the country would...
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