Last week, Finance Minister Bill Morneau announced its intention to address tax planning strategies involving the use of private corporations. The Finance Minister also encouraged stakeholders – including the affected business communities, provincial and territorial governments, tax advisors, and other Canadians concerned about the tax system – to participate in the ongoing consultations.  Let’s review what exactly the proposed changes are: 1.    Income Sprinkling:  This involves diverting income from a high-income individual to family members with lower personal tax rates. 2.    Passive Investment Income:  This involves retaining passive investments in a corporation since corporate income tax rates are much lower than...
Continue reading
Rate this blog entry:
0
Currently, the CRA is proposing some changes to narrow the eligibility for the Voluntary Disclosure Program and impose additional conditions on applicants. The most significant change is to offer less generous relief in certain circumstances.  Major cases of non-compliance that are disclosed will not receive the same level of relief as they would through the current program.  Other measures are being proposed to the Voluntary Disclosure Program include: -      Require the payment of the estimated taxes owing as a condition of qualifying for the program; -      Exclude applications that involve transfer pricing and applications from corporations with gross revenue in excess...
Continue reading
Rate this blog entry:
0
Are you currently a student? It may be summer but it is always a good idea to be aware of the tax changes that may affect you as a student.  Here’s what you need to know regarding the tax changes for the tax years 2016 and 2017. Canada Child Benefit:  As of July 2016, the Canada Child Benefit (CCB) has replaced the Canada Child Tax Benefit (CCTB) and the Universal Child Care Benefit (UCCB).  The CCB is a tax-free monthly payment made to eligible families to help them with the cost of raising children under 18 years of age.  The CCB...
Continue reading
Rate this blog entry:
0
Last July 18th, 2017, the Department of Finance released information regarding some proposed tax changes aimed at addressing tax planning strategies commonly used by private corporations. These strategies include income/dividend sprinkling, passive investment income and converting income to capital gains.  The Department of Finance describes these three key tax planning strategies as follows: -      Sprinkling income using private corporations – This strategy shifts income from an individual on a higher personal income tax rate to a family member on a lower personal income tax rate or who may not be taxable at all. -      Holding a passive investment portfolio inside a...
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