The Fraser Institute recently published the 2017 edition of its Canadian Consumer Tax Index Report.  And not surprising anyone, the report shows that taxes are now the largest Canadian household expense. The Canadian Consumer Tax Index tracks the total tax bill of the average Canadian family from 1961 to 2016.  The report includes all types of taxes and that bill has increased by 2,006% since 1961.  According to the report, taxes have increased at such a rapid rate, more than any other single expenditure for the average Canadian family such as shelter (up by 1,527%), clothing (by 677%) and food (by...
Continue reading
Rate this blog entry:
0
Last July 2017, the government announced its plan to close tax loopholes that give unfair tax advantages to business owners.  Understandably, there has been a lot of backlash from business owners regarding the proposed tax changes to address tax planning strategies used by private corporations.  The proposed changes can potentially harm the business community which is why we encourage everyone affected by these changes to take action.  There are a number of ways to let your opinions be heard. 1.    Participate in the Department of Finance’s public consultation by sending your comments to: fin.consultation.fin@canada.ca.  Be sure to send in your consent...
Continue reading
Rate this blog entry:
0
The problem with Section 84.1, according to the Department of Finance is the wording as it describes a specific type of avoidance transaction.  Therefore, the section does not apply to transactions that avoid its specific terms.  In particular, the section can be avoided to enable an individual shareholder to obtain capital gains treatment rather than taxable dividend treatment with respect to taxable capital gains that are ineligible for the Lifetime Capital Gains Exemption.  With the case of intergenerational business transfers, the government did mention that they are reviewing the current income tax system that may have had adverse effects on genuine...
Continue reading
Rate this blog entry:
0
For the past weeks, our blogs have been focused on the proposed changes that the Government announced to address tax planning strategies used by private corporations.  We’ve already reviewed the proposed changes to the first two strategies: income sprinkling and holding passive investments in the corporation.  This week, we’ll take a look at the proposed changes to address the third tax planning strategy – converting a private corporation’s regular income into capital gains. This strategy, according to the Department of Finance, can reduce income taxes by taking advantage of the lower tax rates on capital gains.  Generally, income is paid out...
Continue reading
Rate this blog entry:
0
Subscribe

If you have a question about one of our products or services, please do not hesitate to contact us!
Please Enter Your Name
Please Enter A Valid Email
Please Enter Your Phone Number
Please select your preferred method of contact.
Refresh Please letters shown!

KD Professional Services
Monday-Friday 9am- 5pm
102, 221 18th Street SE
Calgary, AB, T2E 6J5

403-219-0602
403-219-0603

Read our Tweets