Income-sprinkling to end in Jan. 2018? Any details of the proposed tax changes?

keepathomas wrote: ↑ It is extremely frustrating that our Finance Minister insists on implementing his small business tax changes for Jan. 1st 2018, with no details whatsoever. I could not find any information online concerning the proposed tax legislation that is reportedly to start in less than ONE MONTH! Does anyone know what will happen to income-sprinkling? Is 2017 the last year we can do it??? I called my accountant and he said it most likely won't happen..

My personal situation: if income splitting is effectively outlawed starting Jan. 1st 2018, then I need to change my whole corporate tax planning for 2017 and 2018! In my opinion, it is completely unreasonable to be given such short notice (there's only 3 weeks left before 2018). At the very least, push it to 2019!

In one of the articles I found, "The CFIB is concerned that the government's plan effectively means it will be introducing legislation later in 2018 that will be RETROACTIVE to Jan. 1." (Unbelievable...)

Here are some recent articles I found, all sharing my frustration:
https://www.theglobeandmail.com/news/po ... e37184876/
http://torontosun.com/opinion/columnist ... ax-changes
https://www.thestar.com/news/canada/201 ... anges.html

choclover wrote: ↑ I have never seen such a terrible series of policies and decisions executed in such a short period of time.

keepathomas wrote: ↑
In one of the articles I found, "The CFIB is concerned that the government's plan effectively means it will be introducing legislation later in 2018 that will be RETROACTIVE to Jan. 1." (Unbelievable...)

asa1973 wrote: ↑ Never underestimate the power of Liberal's greed and ignorance.

They retroactive changes to income tax just happened a year ago ...

keepathomas wrote: ↑ Say whaat?!! What changes were retroactive a year ago?!

Budget 2016 proposes a number of further amendments to reflect the new top marginal income tax rate for individuals, including:

amending the definition of “relevant tax factor” in the foreign affiliate rules to reduce the relevant tax factor for individuals from the current 2.2 to 1.9;
amending the capital gains refund mechanism for mutual fund trusts to reflect the new 33% rate in the formulas that are used in computing refundable tax;
increasing the Part XII.2 tax rate on the distributed income of certain trusts from 36% to 40%;
increasing from 28% to 33% the tax rate on personal services business income earned by corporations;
providing a 33% charitable donation tax credit (on donations over $200) to trusts that are subject to the 33% rate on all of their taxable income;
applying the new 33% rate on excess employee profit sharing plan contributions; and
amending the recovery tax rule for qualified disability trusts to refer to the new 33% rate.