Last summer, Finance Minister Morneau announced a number of tax reforms for Small Business Owners, including the changes to income sprinkling, minimizing the incentives to keep passive investments and reducing the transfer of corporate surpluses to capital gains. (Read our blog post: A Summary of Proposed Tax Changes in 2017)

This year’s Federal Budget (For more details: 2018 Federal Budget Highlights for Business) really focused on tax tightening measures for business owner:

  • Small Business Tax Rate Reduction from 10% to 9%.
  • Passive Investment Income held within the corp (Reduction begins at $50,000)
  • Tax on Split Income

Since these changes will be effective January 1, 2019, a discussion and plan should be prioritized now, since 2018 will be the “prior year”  of 2019. This is a good opportunity to talk to your business owner clients, incorporated professionals and accountant centres of influence about how life insurance could be a possible solution to “solve” these potential problems.

We’ve put together a powerpoint presentation about the small business tax rules. The presentation is unbranded so you can add your own contact information, your website link and your logo to it. You can use this at a seminar with your small business owner clients, accountants or incorporated professional clients.

If you need a refresher on the new small business tax rules, you can take a look at our last few posts:

The Powerpoint Presentation

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