The Canadian Bar Association has joined dozens of other business groups to call on the federal government to drop proposed tax changes for private corporations.
This summer, the federal government unveiled a number of proposals that would affect the taxation of private businesses in an effort to tackle perceived inequities in corporate taxes. But the Coalition for Small Business Tax Fairness, which now has 42 member organizations, says these changes will unfairly affect small business owners and professionals, including lawyers and law firms.
The changes include restricting the ability of business owners to sprinkle income with family members and limiting a business owner’s ability to claim business income as capital gains. Another proposal would look to close a loophole that allows individuals to pay lower taxes on passive investment income that is held in a corporation.