Important Announcement

Tax Planning Using Private Corporations

On July 18, 2017, the Department of Finance issued a consultation paper with respect to the Tax Planning Using Private Corporations.

While the Minister of Finance and his department describe the document as closing tax loopholes, it is in fact a major change in tax policy for private corporations.

The proposed rules apply to all private corporations, however, as our practice consists primarily of Canadian Controlled Private Corporations (CCPCs) we have focused our comments on the impact on CCPCs.

Below is a summary of the proposed changes and potential implications. Going forward, we will also list new articles and draft letters that you can send to the Minister of Finance and/or your MP to notify them of concerns you may have with the new proposed legislation.

Other References

  • The Department of finance paper is available here. At the time of writing it was also on the Department of Finance home page. While this document may appear to be a detailed review, it is at best a high level summary.
  • Most of the major accounting and tax law firms have papers on their website in respect to these proposals.
  • Moodys Gartner Tax Law LLP has written some excellent papers and blog entries on this topic.
  • Yale & Partners LLP, CPA's has posted an excellent letter they sent to the Minister of Finance on theses issues on their website.
  • Karen Stillwell at Connors Stilwell wrote an excellent post on what questions a real consultation should include.

Sending Your Submissions

Chartered Professional Accountants
Client Portal