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On March 19, 2019 the Honourable Bill Morneau, Minister of Finance, presented the 2019 Federal Budget.  For a full commentary on the budget please click this link: 2019 Federal Budget Commentary.

We are still in awe at the amazing community support for our first Charity Slo-Pitch Tournament, that we held June 22-24, 2018 at Edgar Athletic Park in Red Deer. The 15 team turnout was outstanding and we wanted to thank each of those teams for their commitment and go-get-em-ness that you all showed...even when the weather wasn't being our best friend.

Pivotal Impact

The Provincial Government is making changes to the Employment Standards with their Bill 17. Changes come into effect January 1, 2018, with the exception of the Youth Employment Standards which come into effect on May 1, 2018. Changes include the following:

Most Canadians, and no doubt all small business owners, have heard a lot over the past few months about income sprinkling. On December 12, 2017, the Department of Finance released its final proposals concerning this issue.

Here is what you need to know:

We have some exciting news to share to start off 2018 with a bang!

As of January 1, 2018, we are proud to welcome Konstantin Neykurs to our Partner group! After working at Pivotal LLP (formerly Heywood Holmes & Partners) for nearly 7 years and receiving his CPA while with us, we know that this will be a great fit for Konstantin as well as the firm as a whole.

Holding a passive investment portfolio inside a private corporation

The current system allows for a tax deferral of the individual tax payable if the shareholder leaves funds in the corporation for passive investment purposes instead of being distributed to the shareholders, through taxable dividends or salary, for the shareholders to invest personally.

Converting a private corporation's income into capital gains

Anti-surplus stripping rules

Changes are proposed to prevent individual taxpayers from using non-arm's-length transactions that increase the cost base of shares of a corporation and avoid the application of Section 84.1.  Section 84.1 is intended to prevent corporate surplus from being removed at the lower capital gains tax rates instead of the higher dividend tax rates where an individual sells shares of the corporation to a non-arm's- length corporation.

 

The government is proposing a review of tax planning strategies in three areas:

  • Income sprinkling using private corporations
  • Converting a private corporation's income into capital gains
  • Holding a passive investment portfolio inside a private corporation