Tag: federal budget 2017

Federal Budget 2017 Proposed Changes

  1. Using private corporations to sprinkle income among family members who are in lower personal tax brackets;
  2. Holding a passive investment portfolio inside a private corporation which may be financially advantageous for owners of private corporations compared to other investors due primarily to the fact that income, once taxed at a lower rate, can be accumulated in private corporations before being paid out as dividends to the shareholders; and
  3. Converting a private corporation’s regular income into a capital gains, presumably through selling the shares of the corporation rather than distributing its income.
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