Tax Proposals Target Canadian Business Owners

Although Canadian individuals are already subject to some of the highest tax rates in the world, the Canadian federal government released a discussion paper for consultation on July 18, 2017 which includes proposals that would substantially increase taxes paid by Canadians who carry on business through a corporation. The proposal with the broadest impact is one that would impose tax at a combined rate of 73% on passive income earned by a private corporation that was funded with active business earnings. There are other proposals in the discussion paper that will also have a material impact on many Canadian business owners (a discussion of the other proposals can be found here).

Canadians Already Among the Highest Taxed in the World