Proposed Changes Would Curtail Income Splitting
On July 18, 2017, the Department of Finance released a White Paper concerning the taxation of private corporations and their shareholders. The proposals outlined in the White Paper represent some of the most significant changes to the Canadian income tax system for the last 25 years.
In this Tax Note, we review the legislative proposals relating to income splitting through private corporations and their potential implications. The proposed new rules will, if enacted, come into effect on January 1, 2018. We would be pleased to discuss these legislative proposals with you and to review how you and your clients will be impacted.