CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Trudeau Defends Controversial Tax Proposals

Trudeau Defends Controversial Tax Proposals

by Mike Godfrey, Tax-News.com, Washington

15 September 2017


Canadian Prime Minister Justin Trudeau has said that no one earning less than CAD150,000 (USD123,154) will be affected by his Government's plan to crack down on tax planning strategies used by private corporations.

The Government is currently consulting on proposals to prevent individuals from using private corporations in ways that allow them to reduce their personal taxes. It intends to tackle so-called income sprinkling, the retention of passive investments in private corporations, and the conversion of the surplus income of private corporations to lower-taxed capital gains.

In an interview with CBC, Trudeau stressed that the Government is listening to people with concerns and reassuring them that those earning CAD150,000 or less "will not be negatively impacted by these changes."

Trudeau said that the Government is "trying to ensure that folks who are successful and are paying their fair share, and it's not fair that people who are wealthy have tax rules that they can get out of paying as many taxes and as much tax as middle-class families, and that's something that goes to the heart of fairness."

He added: "We just want to make sure that people using private corporations don't have benefits that aren't available to average Canadians, and that's where we're making a little tweak."

The proposals have been criticized by a range of trade bodies, and earlier this month 35 business organizations wrote to Finance Minister Bill Morneau to ask that he scrap what they described as "sweeping changes that will affect all sectors of Canada's business community." Dan Kelly, president of the Canadian Federation of Independent Businesses, said that in his 23 years of working on behalf of small businesses, he has "not seen this degree of spontaneous outrage toward any other policy."

According to Trudeau, a lot of "wealthy folks are really trying to keep those benefits that they have, and they're making a lot of noise."

TAGS: individuals | capital gains tax (CGT) | compliance | tax | investment | small business | business | tax compliance | corporation tax | tax planning | Canada | tax reform | trade association | trade

To see today's news, click here.

Leave a comment

Read our Posting Guidelines

Am a CPA and have run the numbers under the proposals. Unless there are amendments coming, the statement suggesting anyone making less than 150000 will not be impacted is simply not true! There currently is no threshold of earnings for which a taxpayer could not be impacted under the proposals

Kerry Blain on Monday, September 18, 2017

We simply will move our business out of this country. So will many others. Sick and tired of doing all the hard work so politicians can move our tax dollars into the pockets of CEOs of the wealthiest. Overfed government apparatus, completely out of touch with the real world. What utter baloney, to talk about the average Canadian, when 70% are employed by the Government, sitting on a fat pension, while we take all the risks. No thank you very much.

Fred Kuhnle on Friday, September 15, 2017

Cant make a living off $150000??

Earl Chinchilla on Friday, September 15, 2017

You can bet that clown wont be doing anything to hurt his Trudeau foundation or to slow down the 'donations' to that very same sham.

Pathetic and corrupt. Exactly what the voters of Canada deserve for voting in a halfwit with nice hair.

Pier on Friday, September 15, 2017

Not once have you seen how his Brother was to be the up and coming politician. Not once has he commented on the fact he was an outcast in his own family. He has "used" the last name as his in. The sheep fell for this ploy. He likes to play bully in the House and in Canada. Any citizen in this country that forcefully touches another would be charged immediately with assault. Yet he can do this in the House of Commons without a blink. He spent over 200,000 dollars of OUR money on a vacation. In less than a week. He prays 5 times a day and practices Muslim faith. Yet not a single news source will say this. If he was in any other faith it would be all over. He has never owned a good business nor knows how to even run one. He is saying the tax is for BIG business. Not even close. He is a liar and a thief, just like his Father.

Nigel on Friday, September 15, 2017

Wanna make a little tweak Justin??? Stop giving subsidies to corporate bums like Bombardier, and get rid of that damn cartel which fixes the price of dairy products resulting in Canadians paying twice the price Americans do for milk...

Rene Albert on Friday, September 15, 2017

the problem is our govt is out of control when it comes to spending .The average person making 50000 a year is already over taxed.Lower everybody tax

john armstrong on Friday, September 15, 2017

Funny how these politicians rob the middle class justifying it with lies to suit the masses BUT refuse to to anything with the elite (CEO's of major corporations) making 7 digit plus salaries and golden severance packages.

Johson on Friday, September 15, 2017

Trudeau is appealing to the imagination of a lot of people who think that $150,000 is an unattainable amount without pointing out that expenses such as support workers wages ,the cost of workspace rental etc. is paid from that gross amount in most cases. That leaves a lot of income from small business up for grabs whilst portraying those that make $150,000 as "Uber rich".

John Campbell on Friday, September 15, 2017

i love to read canada news

salim khan on Friday, September 15, 2017

Mr. Trudeau won't be satisfied until he has a nation full of have nots..The best and brightest will leave while he replaces them with immigrants and unemployed pot smoking losers.

Randy Stober on Friday, September 15, 2017

 






Close

Password Reminder

Please enter your email address to receive a password reminder.

 






Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Tax-News+ Updates

Receive FREE daily updates from Tax-News.com, straight to your inbox. Register Now!

For a tailored solution, choose to receive selected news updates for your preferred jurisdictions and topics, with our enhanced Tax-News+ subscriber service. Read more...

 

Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »