Dates to watch for on federal tax changes
By: Sandra Dueck, Policy Analyst, Greater Peterborough Chamber of Commerce
The Chamber network across the country is continuing to #protectgrowth in response to the proposed small business tax changes. Recently, the Peterborough Chamber of Commerce hosted a workshop on the federal tax changes and what those changes will mean for Peterborough businesses. There is a video recap of the session on our website: peterboroughchamber.ca In the Fall Economic Statement of October 24th, the federal government changed course on a couple of fronts, such as no change to the Capital Gains Exemption and a reduction to the Small Business Corporate Tax Rate to 10% on January 1, 2018 and 9% on January 1, 2019, but there is still concern around potential changes to passive investments and income sprinkling. The Peterborough Chamber of Commerce and dozens of other chambers and boards of trade had the opportunity to hear from Finance Minister Bill Morneau at the Canadian Chamber of Commerce (CCC) Annual General Meeting in Fredericton at the end of September. This meeting was very much at the height of opposition and resulted in a policy resolution calling for a comprehensive review of the tax system through a Royal Commission. The Peterborough Chamber also asked that any proposed tax changes for small business be subject to an economic analysis. Since that meeting the CCC has committed to launching its own competitiveness assessment of Canada’s business tax system in 2018. With mounting regulatory compliance costs at all levels of government, proposed carbon taxes, and the continued advancement of the tax reform bill in the United States, understanding Canada’s tax competitiveness is key to continued growth. What has changed and where does concern still exist?