Wednesday, October 25, 2017 – Ottawa – Last week, the Government of Canada released details on the Government’s position for tax fairness for the middle class and those working hard to join it. As a response to feedback from Canadians, Minister of Finance, Bill Morneau, spent last week travelling the country, detailing how Canadian businesses will benefit from these changes.
As a direct result of your comments and our consultations with Canadians, the Government will lower the small business tax rate from 10.5% to 9% by January 2019; this lower rate will support hardworking small businesses, like those here in Vaughan-Woodbridge. “By lowering the federal small business tax rate, businesses will save up to $7,500 per year, allowing small business owners to keep more of their hard-earned money to invest back into their businesses and help grow the economy here in our community,” said Francesco Sorbara, Member of Parliament for Vaughan-Woodbridge.
The proposed measures to income sprinkling include limiting the ability of owners of private corporations to lower their personal income taxes by sprinkling their income to family members who do not genuinely contribute to the business. The vast majority of private businesses, however, will not be impacted. The proposed changes will also aim to limit the tax deferral opportunities related to passive investments. A $50,000 threshold will be created on annual investment income, equivalent to $1M in savings, which will still allow for flexibility, ensuring that small business can continue to save.
The Government made a promise on tax fairness, and we intend to keep it. By listening to small business owners and Canadians across the country, we are ensuring that a fair, more balanced system is implemented.
Office of MP Francesco Sorbara
Phone Number: 613-996-4971