On October 19, Canadians elected a majority Liberal government
for the first time in over a decade. Among the things that will
change under this new leadership is how Canadians—both
businesses and individuals—are taxed.
While nothing is etched in stone, and we have yet to see which
features of the Liberal tax platform will be rolled out, below are
some measures that are likely to change over the next four
years:
Small business tax rate
In the 2015 federal budget, the Conservative government proposed
a reduction in the small business tax rate—dropping it from
11 percent to nine percent over the next four years. While the
Liberal government supports this tax reduction, it wants to ensure
that high income individuals don't use their Canadian
Controlled Private Corporation (CCPC) status as an income splitting
tool to reduce personal income taxes. While it's not yet
certain how a Liberal government would prevent this from happening,
many believe the government may
