Some doubt the minority government would revisit withdrawn proposals for private corporations
Tax experts will be keeping a close eye on the tax policy of the new minority Liberal government, which will have to work with opposition parties to pass legislation.
Among the issues they will be monitoring is whether the Liberals will once again address the issue of small business taxation, and whether they will raise the capital gains inclusion rate. Experts are also considering ways that Canadians may benefit from new tax-planning opportunities should the Liberals proceed with raising the basic personal amount.
The increasing of the personal exemption credit raises the opportunity for high-earning individuals to benefit even more from income-splitting opportunities, such as using a prescribed rate loan strategy with low-income family members, Nicola says — particularly “when we’re paying such high tax rates in corporations and personally.”