Concern expressed over proposed tax changes

TRURO

The government’s proposed changes on business tax make Sam Abushenaf uncomfortable.

On July 18, the federal government initiated a 75-day consultation on proposed changes for taxation of privately held corporations.

“I’m nervous about the

Mosher

changes, especially with a new business,” said Abushenaf, who has been running PuroClean, in Truro, for about a year and a half. “It’s not very clear what the changes will be so you can’t plan for them.

“If changes had come in before, people would have built the structure of their businesses with them in mind.”

He, like many other business owners, feels more time is needed to review the changes before any decisions are made.

During a Truro & Colchester Chamber of Commerce lunch and learn Greg Mosher of MNP spoke about the proposed changes.

“If you’re planning on running out and doing some tax planning you may end up doing something that isn’t going to be e ective anyway,” he said, urging business owners to keep in touch with their accountant and up to date on what’s taking place.

“is is big stu ,” said Mosher. “There’s talk sitting around as a bunch of tax geeks, right now it’s a better situation to be a nonCanadian controlled private corporation.”

He said a lot of people believe the changes would have a very negative e ect on the economy, especially on start-ups.

e Atlantic Chamber of Commerce has called the changes “one of the most radical tax overhauls in 50 years” and says more time and consultation is needed on their impacts. e deadline is now set at Oct 2.

The proposed changes affect income sprinkling, where dividends that would have been received by the owner/manager of a business, pay the money to other family members who are in lower tax brackets, thus saving tax money. ey could also a ect capital gains exemption restrictions and converting income into capital gains.