From Mr. Tim Smith, Chief Executive Officer, Canadian Medical Association
To: CMA Affiliates and Associate Societies,
You may have seen on the news that the Finance Department has launched a consultation on further measures that will affect private corporations. We learned of this only yesterday although we were aware that further measures were being planned.
The link to the announcement is http://www.fin.gc.ca/n17/17-066-eng.asp and there is a 63-page consultation document located there.
Specifically the government is proposing to address:
- Income sprinkling” through a private corporation
- Holding passive investments inside a private corporation
- Converting private corporation income into capital gains
We are conferring with our colleagues at MD Financial Management and will be requesting an impact assessment.
We will keep you apprised of these developments.