MNP Tax: Providing Information and Insight to Canadians During Times of Uncertainty

To further support our clients and raise awareness about potential unintended consequences of the proposed changes, MNP presented at, and submitted a letter to, the House of Commons Standing Committee on Finance outlining how the proposed changes would have a detrimental effect on business owners and entrepreneurs and called on the federal government to start a new consultation process. Representing our 165,000 clients across Canada, MNP then provided recommendations for each of the proposed measures in a more detailed technical paper.

Additionally, MNP Tax team members presented to the Senate on behalf of our clients, as public hearings continued throughout the country. Maintaining the momentum, Loren Kroeker, MNP’s senior vice president of Tax Services, stood as technical advisor of the Canadian Federation of Independent Business (CFIB) presentation to the federal Finance Committee Hearing of the Senate of Canada on the proposed tax changes.

Because of the enormous effort of the small and medium-sized businesses across this country, the federal government listened to the concerns of Canadians and announced it would not be moving forward with measures limiting access to the lifetime capital gains exemption or measures relating to the conversion of income into capital gains. The feedback provided to the federal government will also see amendments to the tax changes related to income earned on passive investments and income sprinkling.

As the federal government conducts more consultations and releases information on the proposed changes, MNP remains concerned about issues such as intergenerational transfers of family-owned businesses, passive investments and the new compliance burden associated with the Tax on Split Income (TOSI) rules. We will continue to monitor the situation, providing updates and ensuring your voice is heard and your interests protected.