Focus On
NEW In-House Counsel | Insurance | Intellectual Property | Immigration | Natural Resources | Real Estate | Tax
Story image

New tax proposals: Sprinkling income, family members and private corporations

Friday, October 27, 2017 @ 8:52 AM | By Robert Kepes

Ninety days was the time between the federal tax proposals of July 18 and the Oct. 16 announcement that the small business tax rate was being reduced from 10.5 per cent to nine per cent, and the draconian income sprinkling rules were being simplified.

On the latter issue, the strategy concerns sprinkling income among family members using private corporations. In this way, the corporation pays dividend income to the spouse and children of the founder, in lieu of the founder paying tax at the highest rate...