When you have to be right
Wolters Kluwer ©
In less than two months, amendments to the tax on split income will potentially affect compensation arrangements of family businesses.
On July 18, 2017, the government announced a series of controversial tax proposals that target tax planning using private corporations. In response to criticisms, the government has decided not to move forward with some of these proposals. However, the government will proceed with the changes to the tax on split income, which will apply as of 2018.
Tax & Accounting
Private Company
Income Splitting
Kevyn Nightingale, CPA, CA (ON), CPA (IL), TEP
Partner and Business Advisor at MNP, LLP
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This paper examines the reasoning behind these changes and reviews the technical aspects of the proposed rules. It is important to understand the new rules since they may affect compensation paid to spouses and adult children of small businesses owners.