Finance Minister to unveil changes to tax reform proposals
It is understood that Canadian Finance Minister Bill Morneau is expected to outline the changes to be made to the Liberal government’s controversial proposed tax reforms today, following significant and ongoing backlash.
The government has so far failed to fulfil its election promise of lowering the small business corporate tax to 9%, whilst also planning to cut tax provisions used by a number of the country’s small businesses.
This includes the commonly used practice of sprinkling, whereby business owners are able to transfer income to a child or spouse who is then taxed at a lower rate.
As a result, the government is revisiting the proposed tax changes and are reportedly finally going to reduce the small business tax rate to 9% from the current rate of 10.5%, set to be announced by Morneau today, according to CBC.
The move is to try and address the concerns and restore the party’s popularity, having slipped in recent polls as a result of the proposals.