Coalition Says Tax Changes May Harm Professionals and Others | APEGA

Coalition Says Tax Changes May Harm Professionals and Others

The Government of Canada continues to hear from Canadians about the effect its proposed tax changes will have on small and medium-sized businesses. The government says the proposed changes are designed to close loopholes for rich corporations, but organizations across the country have responded that the proposals will actually harm ordinary Canadians with small or modest business incomes.

The changes target strategies that have been used for years as good business planning and accounting tools. Changing the rules will erode job creation and hurt the national economy, many Canadians are saying.

The deadline for responding directly to the government is October 2.

Many Members of APEGA and other self-regulating organizations are among those whose livelihoods will be affected. Engineers Canada, which advocates on behalf of Canada’s engineering self-regulators, is channeling its comments through the Canadian Chamber of Commerce, which is participating in a group called the Coalition for Small Business Tax Fairness.

A letter from the coalition to the Hon. Bill Morneau, Minister of Finance, says that the proposals will “unfairly increase the burden of middle-income, independent business owners to levels higher than those affecting other taxpayers. Our members, including many professionals, feel unfairly targeted, intentionally or not.”

The coalition – made up of at least 35 Canadian organizations representing business, agriculture, and other interests – says it is ready to work with the government to tighten up tax rules to reduce abuse. The government should, however, take the current proposals off the table and launch “meaningful consultations” with the business community, the coalition says.

The proposed changes that business is most concerned about involve spreading income among family members, passive or periodic income, and capital gains.

Minister’s Description of Proposed Changes (including feedback instructions)

Coalition for Small Business Tax Fairness