The wind of tax change is blowing - How will it impact farming and small business?

By Dori Modney (@Dori_Modney on Twitter)
October 3, 2017 - 2:10pm Updated: October 10, 2017 - 1:47pm

LETHBRIDGE -   Those calling out against Ottawa's proposed tax reforms seem to be like voices crying in the wind.
 
As the 75-day consultation period for the proposed federal changes came to a close on October 2, there are many who are still concerned about the negative impact on farming and small business.  They fear their concerns have fallen on deaf ears.
 
While the overall goal of the tax proposals is to create more fairness in the system, the fear is that the exact opposite will occur. 
 
 The Canadian Federation of Agriculture has said the proposals would bring about major uncertainty for farms that are incorporated, especially for multi-generational family farms, which may find the reforms complicate the transfer of family farms. The tax changes, which come into effect in January of 2018, will also likely change income splitting between spouses and children, and tax plans previously used for estate planning with be void.
 
Also, the proposed rules for corporations which earn passive income (from investment portfolios) will change. This includes allowing for non-integration between personal and corporate tax rates for investment income, significantly increased taxation rates for corporations, and the loss of the use of the capital dividend account in some situations.
 
The end result would be an increased tax bill. 
 
To help farmers and small businesses navigate the proposed changes a group of experts in law, tax and financial planning will hold a free seminar in Lethbridge on October 18, from 3:00 to 5:00 at the Lethbridge Holiday Inn Ballroom, at 2375 Mayor Magrath Drive.

The Seminar will be presented by:

-- Stephen C. Mogdan and R. Travis Bissett, Lawyers, Stringam LLP
-- Rebecca Sanford, CPA, CA, Tax Manager, KPMG Enterprise
-- Don Strankman, Master Financial Planner, Wealth and Succession Planning
 
The group will be able to guide farmers and small business owners on a course of action and encourages a proactive approach in dealing with the changes.
 
For more information on the seminar,  or call Justine Peters at 403.328.5577
 

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