Bill Morneau’s Discussion Paper: Update #1
To TPC Financial Group Ltd. clients, associates, and other interested professionals,
As you are aware, on July 18th Finance Minister Bill Morneau proposed changes with regards to tax legislation around perceived “loopholes” in the system. These changes would specifically target individuals that they deem high-income earners and individuals with corporations or small businesses.
The changes are centered around three tax minimization strategies that the Liberal government is hoping to restrict: income splitting with family members, passive investment income within corporations, and manipulation of income into capital gains.
While restricting the conversion of business income into capital gains is a well-intentioned and level-headed response to legitimate tax avoidance, eliminating the last remaining tax benefits for business owners is senseless and illogical.
As advocates for professionals across Canada, TPC Financial Group Ltd. strongly disagrees with many of the proposed changes, and believes that there is a fundamental misunderstanding of the challenges that many professionals face. As a commitment to our clients, our office will be doing everything that we can to keep our clients and associates informed of the developments, as well as provide additional resources to have your voices heard.
Over the next nine weeks, our office will be providing a weekly update on any new developments. Our goal is to provide as much information as possible on these developing changes, as well as providing resources that can be used to change the minds of those in favour for the aforementioned changes.
- Our schedule for the next nine weeks is as follows:
July 31st: We will be providing a letter that can be forwarded to your local MP that ensures they are aware of exactly how these changes will impact professionals. This letter can be shared with colleagues who are looking to do something but are unsure where to start.
- August 7th: Our office will be posting an article on the Huffington Post which shows a case study of how hard these proposed changes will impact young professionals just entering the workforce. We encourage everyone to share with their colleagues.
- August 14th: Our office will be posting a second case study to the Huffington Post which will show how the proposed changes could potentially impact retirees.
- August 21st: Our office will be drafting an open letter to Bill Morneau that will provide a detailed analysis on why these proposed changes are not in the best interest of the Canadian economy.
- August 28th: We will define the “reasonability test” that is being proposed for income to spouses and family members.
- September 4th: TBA
- September 11th: TBA
- September 18th: TBA
- September 25th: TBA
If you have any questions or concerns about how these proposed changes could impact your specific situation, please do not hesitate to call our office and speak with a TPC Financial Group advisor.
If any of your colleagues wish to be kept apprised of ongoing developments, feel free to forward our newsletters or encourage them to subscribe on our website.