The Department of Finance is pressing on with tax changes in Canada despite widespread resistance from taxpayers and the media. This week they released some details of how they intend to move forward with measures “to limit income sprinkling using private corporations” and ” to limit the tax deferral opportunities related to passive investments” in private corporations. Until the actual legislation is released we will not know the full impact of these changes. We can interpret that the Liberal Government does wish to deter sprinkling and deferrals by making them incur more taxes. These changes will effect or limit most private corporations in Canada.
The Department of Finance release related to income sprinkling can be found HERE
The Department of Finance release related to deferral opportunities can be found HERE
The Department of Finance release related to capital gains can be found HERE
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