Finance committee On the $5 of active income, the change is 30ยข, and there's no change on the 50, so I don't think you can add the 50 to the 30 directly.
April 24th, 2018Committee meeting
Maude Lavoie
Finance committee But to pay those additional taxes, you need $6 of additional income, so I don't think you can just add on $1 the taxes that you would pay on $5 of active income. You would need overall to have earned $6 in order to pay those additional taxes.
April 24th, 2018Committee meeting
Maude Lavoie
Finance committee As is currently the case.
April 24th, 2018Committee meeting
Maude Lavoie
Finance committee That's correct.
April 24th, 2018Committee meeting
Maude Lavoie
Finance committee That's a decision to be made by provincial governments.
April 24th, 2018Committee meeting
Maude Lavoie
Finance committee There is certainly an increase in the use of CCPCs, as has been observed in the data, very strong growth in recent years.
April 24th, 2018Committee meeting
Maude Lavoie
Finance committee It was in the fall update, I believe, but we can definitely provide information.
April 24th, 2018Committee meeting
Maude Lavoie
Finance committee I think there are a lot of reasons why CCPCs or entrepreneurs would choose to incorporate. The preferential tax system that applies to corporations is aimed at supporting firms to reinvest in their business and supporting them in raising equity in all this.
April 24th, 2018Committee meeting
Maude Lavoie
Finance committee Is your question that the reduction in the small business rate will encourage incorporation, or...?
April 24th, 2018Committee meeting
Maude Lavoie
Finance committee The $50,000 will have to be shared amongst the associated corporations. It's based on rules that already exist for the small business deduction. In your example, where the entrepreneur would own the other company and just split up its operations to benefit from more of the $50,00
April 24th, 2018Committee meeting
Maude Lavoie
Finance committee It will be 9%.
April 24th, 2018Committee meeting
Maude Lavoie
Finance committee Today, under the proposed legislation, it is 10%, but it was 10.5% last year.
April 24th, 2018Committee meeting
Maude Lavoie
Finance committee The small business tax rate compares very well. We are the lowest in the G7 and among the lowest in the OECD.
April 24th, 2018Committee meeting
Maude Lavoie
April 24th, 2018Committee meeting
Maude Lavoie
Finance committee If you are assuming that the rate of return is 5%, then $50,000 would be consistent with $1 million of passive assets. Before then, your measure starts to gradually reduce a small business deduction, and it would be fully phased out at $3 million.
April 24th, 2018Committee meeting
Maude Lavoie