Finance committee  Thank you, Chair. It's a great question. Certainly business owners can utilize the RRSP system for contributing funds to their RRSP for their retirement. However, when you contribute to an RRSP, you lose flexibility if one of the goals of holding the money inside a corporation i

Finance committee  I just want to make a couple of brief comments on that issue. I have heard some suggest that while a business owner could contribute to an RRSP, they would then be able to income split as well. That is a fair comment. However, I'm going back to that family that makes $50,000 to

Finance committee  I would agree as well. I believe there are aspects of the proposals that have merit. I mentioned before that some of the proposed changes to section 84.1, for example, I could support. But in many of these situations, it's fact specific as to whether each individual proposal is h

Finance committee  I would concur as well. I do believe that if there is going to be some sort of income sprinkling rule put into the legislation, it needs to be a bright-line test. It should not be a reasonability test. Also, I believe that a spouse needs to be viewed differently than other fami

Finance committee  I guess with respect to your question, as I mentioned in my opening comments, the spouse does contribute to the earnings of the business whether they're directly or indirectly involved. That should establish an entitlement to receive income and not pay tax at the very highest rat

Finance committee  Yes, certainly P.E.I.'s economy is very much private sector driven, so any changes that will impact the capital that's available for small business are going to have a very negative effect. I can speak specifically to some of these businesses. All three of those sectors you ment

Finance committee  I would say in any tax system there are going to be some who are taking advantage of certain things and that maybe was not intended, but I believe for the most part the current system is working. As I mentioned before, I do think that's really why a comprehensive review of the sy

Finance committee  To that I would say that there are many reasons to incorporate a business. The lower tax rate, in order to be able to fund expansion and working capital, is clearly one of the reasons and incentives that past governments encouraged and wanted. I don't want to call it a loophole

Finance committee  Sure. I also wanted to address, as I believe it's been mentioned already, that these proposals do have retroactive application. Taxpayers are entitled to structure their business affairs with certainty. Many of these structures have been in place for many years with the full ble

Finance committee  Good morning, Mr. Chair and committee members. Thank you for the opportunity to speak here today. My name is Terry Soloman and I have practised public accounting in Charlottetown, P.E.I., for the past 27 years. I can say without a doubt that these proposals are very damaging t