Today the Liberals announced their final changes to the ‘income sprinkling’ or income splitting portion of their small business tax hike. These changes will come into effect on January 1st 2018.
Justin Trudeau and Bill Morneau promised small business owners that this definition would be ‘simple’ and easy to apply. Looking at these documents, I think you’ll agree, that “simple” is not the best term to describe these changes. While the Liberals jet off on their Christmas vacations, hard-working family business women and men across the country will be scrambling over the holidays to figure out what these changes mean for them, and what they need to do to avoid a costly CRA audit.
Conservatives do not support these changes and we will continue to push the Liberals to scrap them altogether. The compliance costs alone are reason enough not to do this. You can count on me to be your voice in Ottawa fighting for common-sense tax practices that will facilitate small business growth.
The Finance Department document outlining these changes can be found here: Finance Canada Background Document
The Canada Revenue Agency direction on how to comply with these changes can be found here: Canada Revenue Agency Compliance Directions
All of the technical documentation on the legislative and regulatory changes can be found here: Detailed Legislative and Regulatory Changes
Personal stories from individual Canadians are what forced the government to modify their initial proposal. If you or your family will be impacted by this revised proposal, please share your story with me so that I can hold this Liberal Government to account. You can submit your story here: Response Form on Income Sprinkling/Splitting Changes
Thank you for your support of our small business sector. Small businesses are the heart of this economy. Together we can fight these changes and restore the respect that hard-working entrepreneurs deserve from their government.
Member of Parliament for Lethbridge