Core Issue: The Federal Department of Finance is considering major changes to how private corporations are taxed in Canada. Ottawa has taken the stance that all income is equal from a taxation perspective and has failed to accurately recognize the unique and important role played by private investment in business and how those businesses are recognized by the current tax system. Changes proposed will impact tens of thousands of businesses negatively by raising taxes, reducing the incentive for private investment, increasing the administrative burden, and creating additional challenges to the inter-generational transfer of business shares to family members. The changes have been advanced to eliminate perceived loopholes when in fact they were fair and balanced tax regulations that promoted growth in private investment across the county in all sectors. The Saskatchewan Chamber of Commerce must use its full resources to correct these misperceptions and work to change the intended actions of the Federal government, or risk seeing a dramatic drop of private sector investment in Saskatchewan.
Read the full version Issue in Focus: Proposed Changes to Tax Planning 2017.