Proposed tax rules
In the summer, the federal government introduced potential changes to the tax rules that impacted private corporations. Since then the government has backed off on most of the proposed changes.
Two major changes are still in discussion:
1. Income sprinkling – announcement expected shortly
2. Passive Income – details likely in the February or March Federal budget
We continue to monitor this closely for the potential impact on our clients. If you would like to discuss further, please contact us.
Corporate tax rate for small business
Effective Jan 1, 2018, the tax rate on eligible Ontario small business corporations will be reduced from 15% to 13.5%.