On July 18, 2017 Finance Minister Morneau released a consultation document on Tax Planning Using Private Corporations together with Draft Legislation and the accompanying Explanatory Notes.
As you are no doubt aware the consultation document caused quite an uproar in the business community and, contrary to the Government statements, the proposed legislation does in fact affect every CCPC - either immediately or in the future.
ATAP formed a sub-committee made up of Alan Rowell, James Peterson and Tim Manery to review the proposed changes with an eye as to how the small to medium business person would be affected, if at all, and what steps should be taken.
The Association of Tax & Accounting Professionals, in consultations with the legislative and lobbying arm of CFIB, joined the Coalition for Small Business Tax Fairness to combine strengths against the legislation, as proposed. The coalition now consists of 76 organizations across Canada. To date we have had 8 conference calls in order to determine strategy to defeat the legislation as proposed. Even though the consultation period has ended, these efforts continue and are on-going.
Using these combined resources, the Coalition has lobbied hard for an extension of the Consultation Period so that any changes that are made are in fact fair and do not contain unintended consequences.
With the approval of the Board of Directors, ATAP provided a submission. ATAP will continue to monitor this situation and provide further information to members as it develops. We ask that our Members also address the issues with their respective clientele and their Member of Parliament.