Proposed Changes to Existing Tax Rules - July 18th Announcement
As you may be aware, the Department of Finance ("Finance") released proposed changes to the existing tax rules on July 18th that will have significant negative tax consequences to some private corporations and their shareholders. We at Virtus Group want to give you an overview of the information as it may have a direct impact on you and your family. The summary can be found below.
The Department of Finance has given until October 2nd to provide feedback on these proposed rules. Virtus Group will be submitting a response directly to Finance on a technical basis, breaking down the issues we have with the draft legislation. We also wanted to make it as easy as possible for you to provide feedback as well if you wish. Feedback directly to Members of Parliament on how the proposed rules might affect you and your family could be useful in influencing Finance to amend their proposed changes.
We had hoped that the feedback and responses sent in so far would be enough to show the government their proposals are too extreme and do not provide the "fairness" they claim is lacking in the existing tax system. But comments this month by both the Prime Minister and Finance Minister have made it clear they intend to move ahead with their proposals, despite the significant opposition and concerns that they have received from business owners, professionals and farmers, individually and through member organizations.
The increased media coverage and supportive comments by some government members can only help. We invite you to express your opinion to the Finance Minister and other Members of Parliament in hopes of minimizing the negative effects of these proposed income tax changes. For anyone wishing to share their concerns with the government on this matter, we have provided a choice of templated letters that you may utilize and/or modify as you see fit.
If you have any questions concerning the recent proposed tax changes, please do not hesitate to contact us: