Are proposed changes to the income tax act a threat to your wealth?
AS PUBLISHED IN THE SPRING 2016 EDITION OF REFINED MAGAZINE
If you’re an entrepreneur or small business owner, potential tax changes to Section 55 of the Income Tax Act may affect you. Let’s imagine you’re a dentist who has set up an operating company and a holding company in order to move retained earnings from the operating company by way of dividends that usually pass through tax free. These earnings were taxed at a low small business rate. You believe you have organized your financial life properly and done everything you can do to minimize taxation within CRA’s parameters. You may not realize that the rules surrounding these parameters are about to change. You’re financial well-being may be at risk. Read more.