Today on The Wealth Exchange, Mark interviews two fantastic guests: Nicola Wealth Management’s CEO and Chairman John Nicola, and Dino Infanti — partner at KPMG.
John has been a veteran of the financial services industry since 1974 with areas of expertise in investment management, estate and financial planning, as well as business planning. Dino has over 15 years of experience and is very well-known for his expertise on tax technical work in estate and succession planning, corporate restructuring, and tax mitigation.
This episode, the three of them discuss corporate tax reform, Canadian tax proposals, the backlash to the legislative proposals relating to income taxes, and what the Canadian government is currently doing for business owners compared to the United States. Dino and John also give their insights and opinions on the current tax system and rules, which rules they see impacting business owners and families the most going forward, and their hopes for what a future tax reform could possibly look like.
[:29] Mark introduces this episode’s guests.
[1:22] About John and Dino’s involvement, their ideas around where everything started to where they are now, what the process has been like, and what it has meant for their clients.
[6:15] Were John and Dino surprised by the backlash to the legislative proposals relating to income taxes?
[8:21] What the Canadian government has been doing for business owners, compared to the U.S. and how these differences could impact Canadian business owners.
[17:11] John and Dino give their thoughts and opinions on tax reform.
[19:16] Did the Liberals’ increase in tax rates to certain levels of income accomplish the equality they were striving for in the final rules?
[21:18] Dino and John’s opinions on lowered business tax rate and the Tax on Split Income rule.
[22:22] Which rules Dino and John think will have the biggest impact on business owners and their families going forward.
[25:25] About the ‘reasonableness test’ and the other ways to measure spousal contributions in a personal business.
[26:54] As a tax advisor for his clients, how does Dino make the distinction or decision about what is reasonable? What is the CRA looking for with regards to what’s reasonable?
[30:38] Dino and John’s thoughts on how the CRA is looking at financial contribution and income splitting.
[37:18] John’s thoughts on the complexities of wealth accumulation and small business deductions.
[39:46] The importance of educating clients on the tax system and rules.
[40:55] All about investing in other private businesses and learning to de-risk by diversifying.
[47:00] Who is the typical individual or business owner that would fit an individual pension plan?
[51:58] Dino speaks about the requirements needed for an active real estate portfolio opposed to a passive one.
Mentioned in this Episode:
- Tax on Split Income (TOSI Rule)
- Reasonableness Test
- Canada Revenue Agency (CRA)
- Registered Retirement Savings Plan (RRSP)
- Individual Pension Plan (IPP)
John is the CEO and Chairman of Nicola Wealth Management. He provides strategic leadership to Nicola Wealth Management — exercising his passion for providing innovative solutions to clients’ complex problems.
John has been a veteran of the financial services industry since 1974. His areas of expertise include investment management, estate and financial planning, as well as business planning with a focus on best practices for wealth building, exit strategies, and shareholder agreements.
Dino is a partner at KPMG in Canada, and has over 15 years of experience.
He is well known for his insights and guidance on tax technical work in estate and succession planning, corporate restructuring, tax mitigation strategies and divestitures. Dino specializes in owner-managed enterprises primarily in the construction, real estate development, and holdings sectors, in addition to the entertainment sector.
About Your Host — Mark Therriault
Mark is the Financial Advisor and partner of Nicola Wealth Management — and your host for The Wealth Management podcast.
As a member of the NWM Planning Team since 2006, Mark has become his clients’ trusted advisor. He prides himself on providing an exceptional experience to his clients while quarterbacking their financial affairs.
Mark earned his Bachelor’s degree in Economics with a minor in Finance from the University of Calgary. He went on to secure his CFP designation and also completed the CIM, CSC, the B.C. Life Insurance License.
This presentation contains the current opinions of the presenter and such opinions are subject to change without notice. This material is distributed for informational purposes only and is not intended to provide legal, accounting, tax or specific investment advice. Please speak to your NWM Advisor regarding your unique situation. Forecasts, estimates, and certain information contained herein are based upon proprietary research and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. NWM fund returns are quoted net of fund-level expenses. Past performance is not indicative of future results. All investments contain risk and may gain or lose value. Projected returns are estimates only. Returns are not guaranteed. NWM is registered as a Portfolio Manager, Exempt Market Dealer and Investment Fund Manager with the required provincial securities’ commissions in Canada.