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.

See also:

• Ottawa’s proposed tax changes may impede innovation – Hootsuite CEO

• John Manley moves big money out of Canada due to controversial tax proposals

• IMF warns Canadian government over creating 'small business trap' via tax relief

Critiques of the proposed changes have included John Manley and the CEO of Hootsuite, whilst the CFIB recently delivered a total of 14,691 tax petition letters to Ottawa.

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.