Canadian Tax – Federal Liberal Tax Changes on Private Corporations
Over the last few months, much has been written about the proposed Canadian tax changes to private corporations.
I am concerned about the speed at which the Department of Finance is moving to enact these significant and wide reaching tax changes. The proposals were introduced in the summer, while Parliament was not in session, and sought out feedback during a short 75 day window while many Canadians were on holidays and other hard working farmers were busy harvesting. My concern is that such complex tax matters need further review, study and consultation else they will have a significant impact on our economy.
Some of the better commentary on these proposed tax changes that I have read this summer is in thelinks below:
Over the last few months, much has been written about the proposed Canadian tax changes to private corporations.
I am concerned about the speed at which the Department of Finance is moving to enact these significant and wide reaching tax changes. The proposals were introduced in the summer, while Parliament was not in session, and sought out feedback during a short 75 day window while many Canadians were on holidays and other hard working farmers were busy harvesting. My concern is that such complex tax matters need further review, study and consultation else they will have a significant impact on our economy.
Some of the better commentary on these proposed tax changes that I have read this summer is in thelinks below:
Globe and Mail Editorial, September 16, 2017 https://beta.theglobeandmail.com/opinion/editorials/globe-editorial-how-the-liberals-are-blowing-it-on-small-business-tax-reform/article36282128/?ref=http://www.theglobeandmail.com&
John Manley, former Liberal Finance Minister, National Post September 21, 2017 http://nationalpost.com/news/canada/tax-changes-anti-rich-rhetoric-have-already-inspired-big-fish-to-leave-manley
Allan Lanthier, retired Ernst & Young partner, National Post September 7, 2017 http://business.financialpost.com/opinion/the-good-bad-and-downright-offensive-in-morneaus-tax-reform-proposals
A description of the tax changes can be found at this link
Tim Cestnik, Globe and Mail, July 20 2017 https://beta.theglobeandmail.com/globe-investor/personal-finance/taxes/proposed-tax-changes-will-shake-the-small-business-world/article35754872/?ref=http://www.theglobeandmail.com&
Earlier this month, I reached out to Liberal MP Joe Peschisolido – Steveston-Richmond East and attempted to meet with him to discuss my concerns further. He has responded not with a meeting but with an open house to hear the concerns of his constituents. The letter and details of the Friday September 29, 2017 open house are below. I encourage all Canadians to have their voices heard by the Liberal government and department of finance. You can do so by contacting your MP, signing one of the online petitions requesting further time to study these proposals and/or participating in the consultation process at http://www.fin.gc.ca/activty/consult/tppc-pfsp-eng.asp
Dear Mr. Flynn,
Thank you for writing to me about the consultations on tax planning using private corporations, currently underway. I appreciate receiving your comments on this issue.
Our government is working to create an economy that works for the middle class, and where business – large and small – have the confidence to invest, grow and create good jobs. Unfortunately, when some people pay less than their fair share in tax, it undermines these efforts.
Since coming to office, we have taken clear action to support Canadian businesses, the drivers of growth and creators of good, well-paying middle class jobs. We have made critical investments in our infrastructure, and are supporting innovation throughout our economy. We launched the CanExport program to help small and medium-sized businesses expand to new markets around the world. And we have ensured that Canada continues to have the lowest small business tax rate in the G7.
Furthermore, each year the BDC, Canada’s only bank dedicated to small businesses, supports more than 42,000 entrepreneurs with financing and expert advice, while the Canada Small Business Financing Program guarantees thousands of small business loans made by Canadian financial institutions.
These efforts are having an impact. Canadians are among the world leaders in the number of companies started, per capita. In the past year, the Canadian economy has created more than 300,000 new jobs. The IMF has praised Canada’s economic model and predicts we will lead the G7 in growth this year. The potential changes being discussed as part of this consultation will maintain this advantage and will not impact Canadians’ ability to invest in and grow their business.
Our goal is to build confidence in our economy by closing tax loopholes only available to some, while ensuring that entrepreneurs, small business owners and companies of all sizes continue to benefit from Canada’s highly competitive tax regime. To ensure that we do this fairly, we want to hear from you. Have your voice heard by visiting the Department of Finance’s consultation website at: http://www.fin.gc.ca/activty/consult/tppc-pfsp-eng.asp. Consultations conclude in October.
For more information on the programs and services available to Canadian businesses, please visit Canada.ca/Business.
I will be hosting a town hall on this issue on Friday, September 29, from 4:45pm to 6:30pm, at Steveston Community Centre, Seiner Room, 4111 Moncton Street, Richmond. Please RSVP by Thursday, September 28, 2017, noon, at peschj.c1@parl.gc.ca. I hope you will be able to attend.
Thank you again for sharing your perspective with me.
Joe Peschisolido, M.P.
Steveston-Richmond East
