A lot of small business owners are concerned about planned changes to tax laws for Canadian business in the new year.
Prime Minister Trudeau wants to remove tax breaks for people who incorporate to gain bigger tax savings, but it's still unclear exactly what will happen on January 1, 2018.
"Small business always wants clarity: you really want to know what the rules are and know, basically, that the goal posts aren't going to move on an infrequent basis," argued Jeff Hall from Myers Norris Penny accounting and business consulting in Drumheller. "You want to be able to plan your business and business owners need some certainty with respect to that."
Hall added the business community is getting mixed signals from Ottawa and that makes it very difficult to plan for the future.
"They dropped the small business tax rate in October, but at the same time that comes with an increase from the integration standpoint on the rate of dividends for individual small business owners, so it's not as clear cut as it's sometimes projected in the media, that's for sure."
Hall pointed out that small business is the backbone of every economy, but they also have to put up with legislation from all three levels of government: federal, provincial and municipal.
"It's not an easy topic for anybody to deal with," he admitted. "There's lots of changes and one of the big challenges is the goalposts moving on people. We don't mind playing the game as long as we know what the rules are."
For more information on some of the proposed business tax changes, follow this link.
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