Description: During the recent federal election the Liberals, while supporting cuts in the small business tax rate, expressed concern about businesses being set up mainly to avoid paying higher rates of taxes. Now that the Liberals are in office, some doctors and lawyers fear that the new government may alter the rules on Canadian controlled private corporations (CCPCs). Their concern is that the government may reduce small business tax privileges in order to prevent high income professionals from avoiding tax.
Date: November 27, 2015
1) What are the possible tax advantages for a professional using a CCPC?
2) What are some of the ways the government might choose to address this perception of tax avoidance?
3) Do you believe the government should pursue this change in tax policy?