Felesky Flynn LLP Submission to Department of Finance
The July 18, 2017 White Paper published by the Department of Finance proposes significant changes to Canada’s corporate income tax system, which may adversely impact a large number of private corporations. The proposed amendments are complicated; this complexity will lead not only to unintended consequences, but will also impose outsized compliance costs on Canadian businesses.
Our firm’s submissions to the Department of Finance are available here. We believe that the White Paper proposals are problematic from both a tax policy and tax administration standpoint, and that they should be withdrawn in order to allow a more comprehensive review of the issues identified.
If the proposals relating to income splitting are enacted in their current form, shareholders of private corporations will need to take action to prepare for the coming into force of those provisions on January 1, 2018. We would be happy to review planning options with you or your clients, or to discuss any other aspect of the White Paper proposals.