The guest speaker at today’s (THURS) Yorkton Chamber of Commerce luncheon warned guests that it’s important to understand how proposed federal tax changes could severely impact the nation’s small businesses.
Sarah Tkachuk, a partner with KPMG Enterprise, in Regina, says there are three main areas being targeted.
“Income splitting, the conversion of dividend income into capital gains and also the use of passive investments inside a corporation,” Tkachuk listed.
“They (the Liberal government) are intending to mitigate some of the perceived abuses, but it will have a widespread impact on many taxpayers, and so I think it’s important for people to understand these changes and how it will impact their business.” She said.
She says one major consequence would be that passing family-owned companies down through the generations would become more difficult, as they would be taxed more heavily, than by selling to a third party.